Question

Collection is the process of using all legal resources available to collect payment for past due patient account balances. Sometimes emergencies occur in a patient’s life and unfortunately, the medical provider must wait for payment. Most patients are willing to pay their bills but might need a payment plan. However, on occasion, you will experience a patient who refuses to pay for services. For this discussion explain the process of preparing an account for collections. Include the following: how far past due does an account need to be before it is sent to collections? When should collection letters be used? What should and should not be included in a collection letter? Briefly, discuss tracing skips, claims against estates, and bankruptcy.

Answer 1

Collection is the method to make patient to pay their unpaid bills after the certain period of time after discharge from hospital.Usually it is letter notification send to the client in order to remind them to pay the bills. During discharge from hospital according to the hospital finance policy the organisation will allot specific period of time for the client to pay the bills.If the client fails to pay within this period then collection letter has to sent to the client.It can be send one day after the mentioned date or can be 15 ,45, and 60 days from that mentioned date.All past dues whatever the patient need to pay has to be included. some clients have insurance plans,it cover most of the services apart from that all other can be included in the collection letter.The letter must be used when the client fails to pay within the mentioned period of time.The letter must include the amount , day after the mentioned date, methods to payment and next step will take over by organization if not paid,services.No need to include the bill detail in every time in all letters.

Tracing skips which means the individual who is unable to repay the amount will disappear and close all their accounts. so the other party who is collecting amount from the individuals will try to find the creditor to get the amount.

Claims against estates, it is the method of getting debt.The individual will get the amount from the collection agency by keeping their estates as security.But if the individual fails to repay the amount the agency can make the estate as their own property.

Bankruptcy , it is also the method of getting free from paying debts.If the individual unable to find any way to repay his debt then he can file a petition as bankruptcy.Then the court will discuss and analyse the client situation and make him free from the debts without paying it.