Practice management exam 4

Financial Report

Balance sheet, profit & loss statement, accounts receivable, accounts payable

Accounts Receivable (AR):

Money owed to the dental practice

Accounts Payable (AP)

Money the practice owes to others

Accounts Receivable Bookkeeping

System used to track patient charges, payments, and outstanding balances

Embezzlement

Illegal theft of practice funds, often by altering financial records

Fair Debt Collection Act

Federal law that protects patients from abusive, unfair, or deceptive collection practices

Collection Letter

Written notice sent to patients requesting payment of overdue balances

Financial Records

Kept separate from clinical records; include billing and payment info

Clinical Records

Patient’s dental history, treatment, radiographs, and notes

Statement

Summary of charges, payments, and remaining balance (usually monthly)

Non-Sufficient Funds (NSF)

When a check is returned due to not enough money in the account

Handling NSF Check

Notify patient, charge NSF fee, request repayment (often cash or card)

Identity Theft

Using another person’s personal information without permission

Enrollee

Person covered under the insurance plan (patient)

Subscriber

Person who holds the insurance policy (may or may not be the patient)

Carrier

Insurance company providing coverage

Beneficiary

Person receiving the insurance benefits

Dual Coverage

Patient has two insurance plans

Primary Insurance

First plan billed

Secondary Insurance

Second plan billed after primary

Copayment

Fixed amount patient pays at time of service

Coinsurance

Percentage of cost patient pays after deductible

Deductible

Amount patient must pay before insurance starts covering

Exclusions

Services not covered by insurance

Reasonable and Customary Fees

Standard fees based on area averages

Schedule of Benefits

List showing how much insurance will pay for each procedure

CDT Codes (Current Dental Terminology

Standard codes used to describe dental procedures for billing

Pretreatment/Predetermination Estimate

Estimate sent to insurance before treatment to determine coverage