Financial Policies and Procedures Rachel Lowe University of Phoenix - Axia July 6, 2011
EFFECTIVE FINANCIAL POLICIES AND PROCEDURES Financial Policies and Procedures Financial policies and procedures are important to the running of a medical office; this means that all procedures must be done correctly to ensure that the laws are upheld. If these procedures are not followed then there are many consequences that could arise that will injure the integrity of the medical office. There are a few basic elements that are needed to ensure that the medical office is using an effective financial policy. This policy is generally the same as any other business, for
example there are accounts receivable, payable, supplies that are ordered, and collections. There are accounts that need to be paid by the patients that if are not paid would than go to the collections department to ensure that the patient pays the money that they owe. If these patients have insurance than these bills or “claims” are sent to their perspective insurance companies. Payable accounts are actual bills that the medical office owes, such as electric bills and payroll. Financial policy depends on the insurance company as well as the medical offices, for example if it is financial policy for the medical office to charge a fee for a patient that is a no show than that is policy and the patient will have to pay the set amount. Each medical office has the right to make their own policies when it comes to financial obligations. Each patient is made aware of the policies before they become actual patients to the practice. If the patient agrees to the terms of the medical practice then they are liable for all charges that are incurred. This includes charges that are set forth by their insurance providers such as co pays. There are condequences when office procedures do not support the financial policies of the medical practice. This could include charges of misuse of money that actually belongs to the medical practice, and charges of fraud. If a worker in a medical office does not follow financial policy than the medical office is actually losing money from the patients. When this happens
EFFECTIVE FINANCIAL POLICIES AND PROCEDURES there are mistakes that are constantly made that anger the medical office managers, and the patients. A simple way to ensure that medical offices are following procedures and policies is to make sure all the rules and regulations are known up front. This could be accomplished by making sure all workers and patients know and understand policy. By following the guidelines that are already set up than office policy is easy to ensure.
EFFECTIVE FINANCIAL POLICIES AND PROCEDURES
References Valerius, J., Bayes, N., Newby, C., Seggern, J., (2008). Medical Insurance (3rd ed.). New York, NY: McGraw Hill.