CRCR - Certified Revenue Cycle Representative Program Account Follow-Up and Collections Flashcards

What is the primary goal of an aged trial balance (ATB) in accounts receivable management?

Answer: To identify and prioritize outstanding balances by age

The ATB organizes outstanding AR by age, helping collectors identify which accounts need immediate follow-up.

Which action best demonstrates compliance during the patient collections process?

Answer: Providing an itemized bill upon request before pursuing collections

Patients have the right to an itemized bill, and providing it upon request is a compliance best practice before escalating collections.

What is a charity care write-off in hospital collections?

Answer: A reduction of a patient balance for patients who qualify based on financial hardship

Charity care write-offs apply to balances for patients who meet income-based financial assistance criteria under the facility's charity care policy.

Which of the following is a common reason a patient balance fails to collect?

Answer: The patient's address on file is outdated

Outdated contact information prevents the organization from reaching the patient, leading to undelivered bills and collection failure.

How does a payment posting error affect the collections process?

Answer: It can create false balances causing unnecessary collection activity

Incorrect payment posting can create phantom balances that trigger unwarranted collection letters or inflate AR.

What is the purpose of establishing a payment plan for a patient with a large balance?

Answer: To provide a structured affordable way to resolve the balance and prevent bad debt

Payment plans allow patients to pay in manageable installments, increasing collection rates while maintaining the patient-provider relationship.