Understanding the Collection Process

Understanding the Collection Process

HCR/230

May 22, 2011

The Collection Process

The Collection Process

There are many necessary steps involved in the medical collection process. Collections refer to all activities related to patient accounts and follow-up. Collections should have a balance between maintain patient satisfaction and generating cash flow. The flow chart above shows the steps related to this process (Valerius, Bayes, Newby, 2008)

The first step in the collection process is the reviewing the patient aging report. This report is analyzed to determine which patient’s bills are past due. These past due bills are then grouped into aging categories. The aging begins on the date of the bill, and is divided into these categories, 30 days current or up to date, 31 to 60 days past due, 61 to 90 days past due, and more than 90 days past due.

The second step in the collections process is to send out the billing statement showing the patient that their balance on the bill is either current or up to date.

The third step in the collections process is collection letters and calls to the patient. A first letter or notice is sent to the patient letting them know that the bill is past due. The notice reminds the patient of the medical practices payment options that are available and their responsibility to pay the debt. This is usually done around the 60 day past due mark. The second letter would be sent out around the 75 day mark along with a reminder call concerning the overdue bill, also reminding the patient of their responsibility and the different payment options available. The third letter is usually sent out around the 80 day mark. The letter will remind the patient that his or her account is seriously delinquent and that if not resolved will be turned over to a collection agency. After the 90 day mark the bill is usually turned over to a collection agency.

The fourth process is for collections specialists to make calls to the patients...