COLLECTIONS
ACCOUNTS RECEIVABLE RISK MANAGEMENT

If payment by a third-party payor or patient is long overdue, you can retain our office for collection services and accounts receivable risk management.

Healthcare providers must be scrupulous about fully complying with a myriad of consumer and collection laws that affect billing and collections. A healthcare provider's policies and procedures must be in conformity with such laws and the provider must ensure that all third parties acting on its behalf, e.g., collection agencies or collection law firms, comply with such laws. Ultimately the healthcare provider is responsible for all billing and collection efforts made on its behalf. The following is a sampling of the most important laws affecting billing and collections:

Fair Debt Collection Act

The Act governs the do's and don'ts that pertain to collection activities of third parties that collect outstanding accounts receivable for a healthcare provider.

Truth In Lending Consumer Credit Cost Disclosure or Federal Reserve Regulation Z

The basic purpose of this regulation is to require disclosure of all direct and indirect costs, terms and conditions relating to the granting of credit. This consumer protection law requires credit granters (e.g.; healthcare providers) to notify borrowers (e.g.; patients) up front how much credit will cost them.

Fair Credit Reporting Act

The basic purpose of this law is to protect consumers from those businesses that issue or use reports on consumers in connection with the approval of credit. This law provides protection of consumers' rights to privacy and limits the use of credit reports.

Fair Credit Billing Act

The basic purpose of this law is to protect consumers from erroneous billing. For example, if a healthcare provider sends a bill to a patient, this law governs the time during which a patient has to dispute the bill, the time during which the healthcare provider must respond to the patient's dispute and the time during which the error, if it exists, must be corrected or the accuracy of the bill explained to the patient.

The Uniform Unclaimed Property Act

This law governs the obligations of a healthcare provider to report and remit aged credit balances or other unclaimed property of a patient.

Healthcare providers must monitor the collection activities of their employees and third parties (collection agencies, collection law firms) in order to reduce the risk of penalties and fines that may be imposed for non-compliance with laws affecting collections. My firm stands ready to assist you.