Office Procedures Flashcards
True or false; a medical practice is a business and must produce a profit
True
The original record of the doctors services and the charge for those services
Charge slip
Can a check from an insurance company include payment for more than one pt?
Yes
The person who writes a check
Payer
Gives a person the legal right over financial matters for a person who is too sick
Power of attorney
A bank will accept a list of deposited items on something other than the bank provided deposit slip,
Since the bank’s deposit slip is attached with the account number
How often is reconciliation performed?
Usually once a month
Should you change any information that is incorrect when reviewing the electronic checkbook register?
Yes
What function electronically reconciled the monthly bank statement?
Balance checkbook
Interest paid on the initial investment and in interest earned on the investment
Compounded interest
Do retirement plans raise business taxes?
No
The person who will receive the payment
Payee
Do not accept a third party check unless it is from…
The health insurance company
Means that you have a legal right to all the money in your account
Vesting
If you terminate employment, do you have to transfer or roll over funds in your 401k account to an Individual Retirement Account?
No
Includes charges and payments
Daily log
Is it important to use the daily log sheet when organizing the practice’s bookkeeping system?
No
What could cost the medical practice thousands of dollars?
Lost bank deposit receipt
Should you accept a check marked payment in full if it is not the complete outstanding balance?
No
Paid vacations, paid holidays, disability and life insurance are examples of…
Employee benefits
Involves managing accounts receivable and accounts payable
Basic accounting
Describes the money that is received
Accounts receivable
Represents the money paid out to run the practice
Accounts payable
Shows the charges for service provided by the practice
Fee schedule
The average fee charged for a service or procedure by all comparable doctors in the same area
Appropriate fee
The average fee charged for a procedure by similar doctors in the same region
Customary fee
There is a growing tendency to determine fees by…
National rather than regional trends
Should you encourage a pt to pay by credit card?
No
Does the credit card company deduct a percentage of each patient charge for its collection fee?
Yes
Is it common for medical practices to accept insurance?
Yes!
Does tricare operates differently from other insurance?
Yes
When you send invoices to a group of patients every few days
Cycle billing
Is it acceptable to threaten to send a pt’s account to a collection agency even if you are not ready to do so?
No!
Should there be anymore communication between the physician’s office and the patient once it has been sent to a collection agency?
No
A lawsuit in which one or more people sue a company that wronged all of them in the same way
Class action law suit
Money paid as punishment for intentionally breaking the law
Fine
The practice can buy this to protect the practice from lost income because of nonpayment
Accounts receivable insurance
Can a physician extend credit to a pt who is unable to pay because of high medical bills?
Yes
If a payment agreement between the patient and physician has been made, what required that creditors provide applicants with accurate and complete credit costs and terms?
The Truth in Lending Act
Free treatment for hardship cases is at who’s discretion?
Physician
Most practices try to reduce expenses by controlling…
Accounts payable
The physician usually authorizes who to handle the purchasing of supplies and other products?
MA
Required by law from every employer for federal tax accounting purposes
Employer identification number
Federal unemployment tax is paid by who?
Employer
Would a physician have a lower unemployment tax than an industry would?
Yes
Purpose is to avoid writing checks for small amounts
Petty cash
Hourly wage + hours worked =
Gross earnings
Requires overtime payments for part time hourly employees for every hour worked beyond the normal eight hours in a day or 40 hours in a week
Fair Labor Standards Act
Does the law require all employers to withhold money from employees’ gross earnings to pay federal, state, and local income taxes?
No
How often should employees update heir W-4 forms?
Once a year
Does the percentage the employer pays for federal unemployment tax increase or decrease if the employer also pays state unemployment taxes?
Decrease
The employee’s _____ earning are his take home pay
Net
Gross earnings - total deductions =
Net earnings
If your practice is not required to use EFT, you must submit employment taxes with a…
Federal Tax Deposit Coupon
An employer must pay FUTS tax if employees’ wages total more than ____ in any quarter
$1500
The number of dependents an employee is claiming is found on…
Form W-4
A common disbursement for a physician’s office is…
Payment for equipment
When ordering supplies is it better to buy too little and reorder more frequently?
No
Does it make more sense to send patients elsewhere for a throat culture if you office only does a few a year so you don’t have to buy the supplies?
Yes
Can you purchase holiday supplies with petty cash fund?
Yes
When should financial accounts be brought up to date?
At the time the patient is discharged
Payments represent the doctor’s…
Accounts receivable
Function of serving as a complete financial record of his charges, payments and balance, an itemized statement, and a record of all visits
The patient’s ledger card
The Federal Communications Commission public notice governing the use of the telephone for collections prohibits…
Calling at odd hours, repeated calls to the debtor, and calls to employers
FICA provided for…
Social security benefits and old age benefits
Term for employees withholding exception certificate
W-4
The amount of social security which is deducted from an employee’s paycheck is based on…
A percentage of gross pay
The employee’s withholding exception certificate must be filed out by…
The employee
The main source of communication between the doctor and the public
Telephone
Identifies a check and the bank it is written on
ABA number
A bank statement is reconciled with…
The depositor’s check book
The payee is not guaranteed payment if the check is a…
Personal check
Term often referring to assets that can be readily converted to cash
Current assets
Dollar entries made on the left side of the ledger
Debits
Appears as the signature of the payee on the back of a check
Endorsement of a check
Any checks received for the doctor should immediately…
Given a restrictive endorsement
All disbursements, regardless of purpose, should be…
Made by check
A rubber stamp may be used for…
Restrictive endorsements
The fee a doctor most frequently charged for a given procedure
Usual fee
The patient’s ledger should be kept…
In a separate ledger file
Term for employer payroll sheet
Compensation record
The process of recording all the details of a transaction in the daily journal before an entry is made in the general ledger
Journalizing
The basic forms which comprise the pegboard bookkeeping system are…
Daybook sheet, patient ledger card, and charge slip
Pegboard posting is often referred to as what type of system?
Write it once
Business reply mail is an example of…
First class mail
Newspapers and periodicals are sent by…
Second class mail
First class mail with valuable contacts should be sent…
Registered mail
Packages and printed matter weighing more that 16oz are sent by…
Fourth class mail
Term for fourth class mail
Parcel mail
The least expensive way of shipping heavy and bulky goods
Freight
A message of 15 words
Straight telegram
How often is a physician’s narcotic license renewed?
Annually
If a pt collapsed in the office, be sure to what before administering CPR?
Pt is breathless and pulse less
A pt calls in to the office and states they have received a blunt injury to the eye, you should advise…
Come in ASAP to have eye checked
The balancing of the monthly bank statement with the checkbook
Reconciling the bank statement
Is used to identify collection problems
An aging of the accounts receivable analysis
All payments received
Gross income
A system in which the money charged is not considered income until the money is received
Accrual basis
A patient’s financial account
Ledger or ledger card
On the ledger card, the adjustment column is used for…
Refunds or charge corrections
A listing of specific services rendered and fees charged
Itemized statement
Are deductions subtracted from net earning, income tax, or payroll tax when computing payroll?
No
A check dated two months from today is considered…
Post dated
What is the latest date an employer may give the W-2 form?
January 31
What form is the physician required by the IRS to complete every three months for FICA income tax?
941
Major medical equipment such as X-ray machines
Fixed assets or capital equipment
When a patient must cancel and appointment, you should…
Immediately offer a new appointment
Ways to prevent patients from forgetting future appointments
Call them the day before, do not book more than two weeks in advance, use appointment cards
What should be avoided by an MA?
Giving medical advice, arguing with a patient, discussing the patient’s condition
When encountering a baffling term
Consult a dictionary
The first way to communicate courtesy to the telephone caller
Answer promptly and identify yourself
The behavioral problem of a person who is ill may be changed by an MA that had an attitude which reflects…
Friendliness, reassurance, understanding
When dealing with irritable pts the MA should…
Establish a friendly atmosphere
A good working relationship between the doctor and the MA will be enhanced if the MA…
Studies the doctor’s ways of doing things and tries to anticipate their needs
The MA should maintain pleasant public relations by…
Being diplomatic, listening carefully, and explaining delays
Since the MA’s day is filled with interpersonal contacts, it is necessary to…
Be well groomed, be prepared to handle emergencies, be understanding