Policy Manual sample

MDT Home Health Care Agency, Inc. BAD DEBT POLICY (CONSEQUENCES OF NON-PAYMENTS) PURPOSE: To establish a mechanism for determining uncollectible receivables, and prevent negative consequences to the Agency. POLICY: · The agency bills for services provided on a monthly basis or more frequently if indicated. Every attempt is made to receive payments on all accounts. · After all procedures have been followed and exhausted, including referral to a collection agency or lawyer, the bill may be written off as bad debt. PROCEDURE: · The Business Office staff are responsible for appropriate and timely billing for all services to patients or third-party payers. If, after following the collection process, the account remains unpaid, the Account Representative completes a write-off request form and attaches copies of collection notes, claims, explanation of benefits, correspondence, and other supporting documentation. · The write-off package is forwarded to the Administrator for approval. If all appropriate steps have been taken to collection on the account and the dollar value is greater than $10.00 but less than $500.00, the package is then acted upon and written off. If the dollar value is greater than $500.00, the President must also be aware of the write-off. · The write-off package is returned within two business days either with approval signature or with questions. If the package is not returned within the allotted time, staff must follow up with the Supervisor. · When approval for the write-off is received, the Business Office staff enters the write-off in the computer system, using the appropriate general ledger code. · For record keeping purposes, the accounting department retains a copy of the write-off · If the account is marked for collection agency referral, the Administrator must follow through with the collection agency. Home Health Agency Overall Plan and Budget F-23