Unit 41 Maintaining Accounts Basic Principles of Maintaining

Unit 41 Maintaining Accounts

Basic Principles of Maintaining Accounts • Maintaining accounts accurately is an essential part of any health care field. • An account can be defined as a financial record of charges, payments made, and amounts due. • A charge is a fee charged for a service.

Basic Principles of Maintaining Accounts • A payment is an amount of money paid by a patient or client. • A current balance is the amount still owed by the patient or client and is often classified as accounts receivable.

Basic Principles of Maintaining Accounts • Most computerized billing systems are easy to use. • Password protection is used so only authorized individuals may access the information. • Daily tape, disk, or CD-ROM backups must be made and stored in a safe area in case of computer failure.

Basic Principles of Maintaining Accounts • If a current balance exists, this becomes a previous balance when a new charge is noted. • The following formula is used to calculate current balance: Previous balance + charge – payment = current balance

Maintaining Accounts • Example: The previous balance on an account is $7. 50. If there is a new charge of $97. 25 and a payment of $70. 00, what is the current balance? – Set up the formula: Previous balance + charge – payment = current balance $7. 50 + $97. 25 - $70. 00 = current balance $104. 75 - $70. 00 = $34. 75 The current balance due is $34. 75.

Practical Problem • A patient with a current balance of $135. 96 visits the office. She is treated for bronchitis with a charge of $97. 50. She pays $42. 00. • What is her new current balance?

Practical Problem • Follow the formula, adding the balance and the new charge, then subtract the payment: • The new current balance is $191. 46