Medical Office Accounting - {Theory}

2 provide financial info 2 individual

Analyze- Looking 2 C wht events have taken place & thinking abt how these affect the business

Record: Entering financial info in/2 the accounting Sys

Classify: Sorting & grouping like items 2/gether

Summarize: Bringing the various items of info 2/gether 2 det. a result

Report: Telling the results

Interpret: Deciding the importance of info on the various reports

Det. financial status

create marketing strategies & evaluate performance.

Det. approval or denial & amt of loan grant.

2 det. how much tax individuals & organizations must pay

The firm's current financial condition

Detailed, up-2-date info 2 measure business performance (& plan 4 future operations)

Whether the firm can pay its bills on time

2 determine taxes 2 b paid & whether other regulations r met

- A record of money owed, that shows how much is owed to a company by customers who have purchased goods or services on credit

- A record of debts, that shows how much a company owes suppliers for the purchase of goods or services on credit

- An Account Receivables Aging Report is a report used by a business to show how long an invoice for payment has been outstanding.

- A form that permits systematic record keeping of treatment of patients and of monies received and spent.

- A book of original entry in a double-entry system, listing all transactions and indicating the accounts to which they belong.

- Total Amt 4 Services rendered tht day

- Allowable amt by Medicare

• - is when U subtract the "Total Actual Charge" from the :Medicare Allowed Amt"
• Ex:
• Tot Act Charge (-) Med. Allowed Amt= Courtesy Adj.

• - has a standard fee of $162. which is subtracted from n.e. payments received by the pt 2/ward the deductible fee amt.
• Ex:
• Deductible (-) Payment received = Remaining Deductible

- is the "Medicare Allowed" (subtracted) frm the "Remaining Deductible" (equals) the "Cost 2 Share"

Ex: M/A(-)R/D=C2S

- is 20% of the Cost 2 Share

• Ex:
• .20 (x) C2S(=) Pt. Co. Ins.

- Combine the "Remaining Ded" w/the "Pt.Co-Ins."

• Ex:
• R/D(+)Pt. Co/Ins= Pt. Total Responsibility

- Subtract the "Cost 2 Share" frm the "Pt. Co/Ins."= Medicare-due paytment.

• Ex:
• C2S(-)Pt. Co Ins=Medicare Payment