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99 Cards in this Set
- Front
- Back
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Accounting |
A system designed to maintain financial records of a business |
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Accounts payable |
Expenses and disbursements paid out from a business |
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Audit trail |
Method of tracking the accuracy and completeness of book keeping records |
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Bonding |
Form of insurance or reimburses an employer for loss resulting from theft of an employee |
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Bookkeeping |
Process of managing the financial accounts of a business |
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Carrier |
Insurance company that pays the claims and collects premiums |
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Change fund |
Fixed amount of cash |
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Check |
A draft or an order drawn on a bank account for payment of a specified amount of money |
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Check register |
Record of all checks issued on and deposits made to an account |
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Coordination benefit |
Coordinating insurance coverage between two insurance carriers |
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Current dental terminology |
Publication that lists the procedure codes assigned to dental services for processing dental insurance |
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Customary fee |
A free that is within the range of usual fee charged for the service |
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Deposit slip |
Itemized memorandum of funds to be deposited into the bank |
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Disbursements |
Payments on any outstanding accounts payable |
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Expenses |
Overhead cost of a business that must be paid to keep operating |
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Fixed overhead |
Business expenses that are on-going |
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Gross income |
Total income received |
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Invoice |
Itemized list of goods that specifies the prices and terms of sale |
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Ledger |
Financial statement that maintains all of accounts transactions |
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Net income |
Income minus expenses |
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Packing slip |
Itemized listing of shipped goods |
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Payee |
Person or business named on the check as the recipient of the amount shown (person receiving the money) |
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Peg board system |
Manual book keeping service |
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Petty cash fund |
Limited amount of cash that is kept on hand for small daily expenses |
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Posted |
Describes the documents of money transactions within a business |
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Provider |
Dentist provides treatment to patient |
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Reasonable fee |
A fee that is considered justified for an extensive or complex treatment |
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Responsible party |
Person who has agreed to pay for services on an account |
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Statement |
Summary of all charges, payments, credits, and debits for the month |
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Transaction |
Any charge or payment |
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Usual fee |
A fee the dentist charges for a service |
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Variable overhead |
Business expenses that change depending on the types of services needed |
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Walkout statement |
Written indication of any balance due on an account given to patient as he or she leaves the practice |
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Account Management |
Begins with clearly defined financial strategy established by the dentist once these guidelines have been made its the responsibility of the business assistant to carry them out. Some important areas: Billing/Collect procedures Financial planning Declaring money earned to federal and state agencies |
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Gathering financial info |
Gather info on patient like insurance company, and tell them the financial services offered. Make sure patient brings identification card to appointment Info on reg form: Name, address, number, place on employment of person responsible for account Info specifying coverage Identification info for all individuals on the account |
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Credit reports |
For expensive procedures dentist can request credit reports |
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Fee presentation |
Before a case is presented to patient and procedures are done an estimated fee will be given to patient |
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Financial arranagements |
Payment plans |
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Accounting |
Means or process of recording, classifying, and summarizing financial statements. Bookkeeping is the recording of the accounting process. |
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Accounts receivable |
Manages all money owed to the practice (Bookkeeping) involves maintaining all transactions related to collect fees for services provided to the patient Systems: Pegboard(One write system) manual book keeping service completed in a single entry Computerized - data entered into the system is used to maintain account history and practice records. Enter accurately as it generates totals and daily monthly summaries |
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Accounts receivable management basics |
Charge slips (super bill) used to transmits financial info from the treatment area to the business office provides all patients info and treatment done - part of the audit trail Daily journal page - practice record of all transitions each day - includes name, payment and adjustments made Receipts and walkout statements - receipt is proof of payment and walkout statement shows current account balance |
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Recording payments |
All payment are entered promptly into the bookkeeping stem so they are document in the account history on the daily journal. As a safeguard all checks should be stamped right away with a restrictive endorsement which prevent anyone from cashing cheque of stolen |
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Anatomy of pegboard |
Back (Definition) |
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Patient account records |
Organized in the basis of info regarding the responsible party (guarantor) the person who has agreed to be responsible for payment. The account record is used to track all account transactions. A current account balance it maintained at all times, and this info is used to make statements, insurance claims and other collection efforts |
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Payments |
Payment at time of treatment Cash Check Credit card Digital wallet Professional courtesy and discounts - if your buying a lot sometimes the dentist will throw in something extra like whitening or give a discount for appreciation |
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Daily proof of posting |
At the end of each workday the entries on the daily journal page are compared with the appointment book to insure all patient visits have been entered. Computer systems total all figures automatically and can print reports as needed. Total number of receipts must match the amount in the cash drawer minus the change fund |
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Bank deposits |
All receipts should be deposited daily. When the amount of receipts exactly match the amount of deposits the account has met auditing critical test to verify bookkeeping. Deposit slip is taken to bank to be credited to the practices account. |
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Monthly statement |
Represents a request for the payment due on accounts. Under this plan the patient is expected to pay the balance in full on receipt of the statement . |
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Truth in lending statement |
When more than four payment instalments are set up patient will receive a truth lending statement and need to sign |
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Divided payment plans |
Arrangements by which the patient pays a fixed amount on a regular basis Info needed; Total fees for service Balance after deduction of the down payment resulting amount to be financed Annual percentage rate of finance charge Number of payments to be made Amount of each payment Date oh which each payment is due |
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Collections |
Essential for the business assistant to have skills to manage money ores and collect in a timely manner |
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Accounts receivable report |
Valuable management report that shows total balance due on each patients account plus analysis of age of the account |
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Management of collections effort |
Under the federal fair debt collect practice law it is illegal for anyone to carry out the following: Telephone debtor at inconvenient hours (before 8pm is acceptable Threaten violence Use false pretences to get info Contact employer except to verify employment |
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Collection telephone calls |
More effective then letters when collecting money because the provide direct contact with debtor so not easily ignored. Before you call make sure you have info in front of you such as exact amount owed, payment due date, notes from previous convos |
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Collection letters |
Phrased in a firm, positive, business like manner that makes every effort to persuade the patient to pay debt |
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Final collection options |
Final decision regarding turning accounts over for collection must be made by dentist and an account is never turned over the dentist specific approval |
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Collection agency |
A collection agency makes additional efforts to collect the balance overdue but the agency charges a percentage of the amount collected and is deducted before the balance is given back to dentist |
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Small claims court |
Another options is to take the debtor to small claims court so arrangements are made so the business assistant not the dentist can appear for the hearing. One drawback is in the end it will still be up to practice to collect money |
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Collection follow up |
30 days - regular statement 60 days - second statement with message or phone call 75 days - another phone call and amiable collection letter mailed 90 days - third statement with a stronger note collection letter - most often states that if payment isn’t received in 10 days account will be sent to collections 105 days - another phone call is this call or message - again saying it will be turn over to collections if not paid by a certain date 120 days - if no payment is received then account will be sent to collections |
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Accounts payable management |
Systems manage all of the money that is owed by the practice. Expenses and disbursements determine the cost of business. Expenses are called overhead which is the actual house of doing a business |
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Dental office overhead |
Fixed overhead - business expenses that continue at all times (mortgage, utilities) Variable overhead - expenses that change according to the type of services procured or obtained (dental supplies, contractor fee, lab, repairs) Gross vs net - gross is total amount and net is everything after expenses. Most practices hire a certified public account on a retainer basis |
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Disbursements |
Practice required good organization handling and prompt payment of all bills for practice related expenses. Major expenses should be made by check with records kept and balanced at all times. Minor expenses are handled through petty cash |
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Suggestions for composing collection letters |
Back (Definition) |
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Organizing expenditure records |
Statement and invoices that have not yet been paid are placed in the accounts payable folder Expenses are classified into categories these usually include groups such as professional, supplies, lab, salaries, maintenance, utilities and business office supplies |
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Payment on accounts |
In the dental office the accounts payable is routinely paid one or twice a month Before writing check compare statements and invoices and make sure you pay the correct amount |
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Payment on accounts |
In the dental office the accounts payable is routinely paid one or twice a month Before writing check compare statements and invoices and make sure you pay the correct amount |
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Cash on delivery |
Sometimes foods are shipped on cash on delivery which means that at the time of delivery the goods must be paid. Some places will accept check and some places only cash. |
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Writing checks |
Check terminology Check endorsements - always endorse checks right away |
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Stop order payment |
If the marker of a check for various reasons does not want the bank to pay a check that has been written the marker just has to request the bank to issue stop payment order for that check |
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Business summaries |
All checks must be accounted for in specific expense categories with a computerized system posting to the appropriate category is part of the check writing process. With a peg board check writing expenses are posted to a category at the time check is written. |
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Payroll |
The sum of all financial records of salaries, wages, bonuses, and deductions from the accounting perspective refers to the amount paid to employees for services provided during a certain time |
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Payroll |
The sum of all financial records of salaries, wages, bonuses, and deductions from the accounting perspective refers to the amount paid to employees for services provided during a certain time |
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Payroll deductions |
Income tax withholding Federal insurance contributions act Other deductions - workings comp, etc Government remittance - if you don’t pay your taxes |
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Dental insurance |
Assistance program that supports patient or family with cost of dental care Traditional Plans - provides benefits for dental treatment that the covered individual received from his or her OWN dentist - fee for service and come with limitations and copayment options - pays flat fee but has an annual limit Managed care dental insurance - provides low to medium health care coverage to everyone under certain plans, types, level, frequency. Also try’s to control level of reimbursement free. Here are a few times: Capitation plans(HMO) involves arrangement in which a dentist has contracted to provide dental services for the plans members. Dentist is usually paid monthly a fixed amount per dental plan. Preferred provider (PPO) closed panel type of place - variation of a fee for service practice. Dentist may join PPO in hopes to attract new patients or in efforts to retain his or her current patients who are oversee by the PPO plan. Charged normal dental fees and dentist may see other patients Exclusive provider organizations - another form of closed panel dental insurance similar to PPO with the exception patients are offered no other option other than getting treatment from Dentist who is part of the network Direct reimbursement plan - self funded program in which the individual is reimbursed by employer on the basics of a percentage of dollars spent for dental care. Seek dentist of choice. No insurance involved instead employee pays dentist Individual practice association - formed by groups of dentists for primary purpose of collectively entering into contracts to prove dental services to enrolled populations - capitation basis Government programs - for low income families |
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Parties involved in dental insurance |
Subscriber - person getting treatment Dependent- spouse or child getting treatment Group - employment organization that has negotiated insurance as part of its benefits package) Carrier - insurance company Provider - dentist |
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How benefits are calculated |
1. Usually , customary fees, reasonable fees 2. Schedule of benefits - table of allowances or schedule of allowance - fixed or specified amount the the carrier will pay toward the cost of covered services. Patient is responsible or difference 3. Fixed fee - established free for any treatment revised by patient - can’t bill patient for difference |
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Determining eligibility |
When a subscriber starts a new job 30-60 day waiting period is common before getting coverage If subscriber gets laid off, quits, retires, coverage will be terminated within 30 days |
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Determining benefits |
2 major factors are how much the carrier will pay and how much the patient must pay are the method of payment and limitations within the plan. Limitations : Least expensive alternative treatment - limitation that allows befits only for the least expensive treatment Dual coverage - if patient is under more then on plan it’s necessary to take step to be certain the appropriate benefits are paid Determining primary and secondary carries - who should pay first and who should pay the least portion of the balance Birthday rule - when does the child get taken off the insurance plan Coordination of benefits - patient will receive payment from both carries but the total may not be more then 100% of the actual dental expenses. First carrier will pay 80% then the second carrier would only pay 20% to make 100% of the fee. Non duplication of benefits- under this plan a provision relieves the carrier responsibility for paying for services that are covered by another programs. Reimbursements are like items to the higher level allowed by two plans rather than to a total 100% Example: the fee is 250 Primary allows 175 for this treatment and secondary allows 190 so primary pays 175 and secondary pays 15 to bring it to 190 and patient pays rest. |
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Claim forms |
Claims for dental treated are filed by submission on a claim form that is mailed or by electronics form. Includes Patient/subscriber info, dentist info, and details concerning the treatment |
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Claim forms |
Claims for dental treated are filed by submission on a claim form that is mailed or by electronics form. Includes Patient/subscriber info, dentist info, and details concerning the treatment |
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Dental procedure codes |
Also known as current dental terminology Each procedure has a designated code number which is designated into categories of service Diagnostic - 0100 - 0999 Preventive - 1000-9999 Restore -2000-2999 Endo - 3000 - 3999 Perio - 4000- 4999 Removal pros - 5000 -5899 Maxillofacial prosthetics - 5900 a 5999 Impact - 6000-6199 Fixed prosthodontics- 6200 -6999 Oral surgery - 7000-7999 Ortho - 8000-8999 General - 9000 - 9999
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Accepted fee |
Dollar amount that the contracting dentist has agree as payment in full |
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Claim forms |
Claims for dental treated are filed by submission on a claim form that is mailed or by electronics form. Includes Patient/subscriber info, dentist info, and details concerning the treatment |
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Dental procedure codes |
Also known as current dental terminology Each procedure has a designated code number which is designated into categories of service Diagnostic - 0100 - 0999 Preventive - 1000-9999 Restore -2000-2999 Endo - 3000 - 3999 Perio - 4000- 4999 Removal pros - 5000 -5899 Maxillofacial prosthetics - 5900 a 5999 Impact - 6000-6199 Fixed prosthodontics- 6200 -6999 Oral surgery - 7000-7999 Ortho - 8000-8999 General - 9000 - 9999
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Accepted fee |
Dollar amount that the contracting dentist has agree as payment in full |
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Annual maximum |
Total dollar amount that insurance plan will pay for in a specific benefit period |
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Claim forms |
Claims for dental treated are filed by submission on a claim form that is mailed or by electronics form. Includes Patient/subscriber info, dentist info, and details concerning the treatment |
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Dental procedure codes |
Also known as current dental terminology Each procedure has a designated code number which is designated into categories of service Diagnostic - 0100 - 0999 Preventive - 1000-9999 Restore -2000-2999 Endo - 3000 - 3999 Perio - 4000- 4999 Removal pros - 5000 -5899 Maxillofacial prosthetics - 5900 a 5999 Impact - 6000-6199 Fixed prosthodontics- 6200 -6999 Oral surgery - 7000-7999 Ortho - 8000-8999 General - 9000 - 9999
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Accepted fee |
Dollar amount that the contracting dentist has agree as payment in full |
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Annual maximum |
Total dollar amount that insurance plan will pay for in a specific benefit period |
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Balance billing |
When a dentist bills the patient for an amount above fee and the enrolee coinsurance, the dentist is balance billing and violating his or her contact with insurance company |
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Capitation |
Compensation paid to general dentist in a closed network dental benefit plan |
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Capitation |
Compensation paid to general dentist in a closed network dental benefit plan |
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Closed network plan |
Enrolles must visit a preselected or assigned network dentist to receive benefits |
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Coinsurance |
Enrolles share or expressed fixed precent |
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Coinsurance |
Enrolles share or expressed fixed precent |
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Contracted fee |
Fee for each single procedure |
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Co payment |
Fixed dollar amount that an enrolle must pay the time the service is rendered |
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Open enrolment |
A period when qualified individuals can enroll in or change benefit plans |
