Medical Assistant Chapter 16: Patient Accounts and Practice Management

Assets

All property available for the payment of debts.

Belligerent

Hostile and aggressive.

Bookkeeping

The process of recording financial transactions.

Cash On Hand

The amount of money the healthcare facility has in the bank that can be withdrawn as cash.

Counterfeit

An imitation intended to be passed off fraudulently or deceptively as genuine; forgery.

Defendant

An individual or a business against which a lawsuit is filed.

Discretionary Income

Money in a bank account that is not assigned to pay for any office expenses.

Emancipated Minor

A minor who has been granted emancipation by the court; the minor can assume the rights and responsibilities of adulthood.

Embezzlement

The misuse of funds for personal gain.

EMV Chip Technology

Global technology which includes embedded microchips that store and protect cardholder data; also called chip and PIN and chip and signature.

Executor

An individual assigned to make financial decisions about the estate of a deceased patient.

Explanation of Benefits (EOB)

A document sent by the insurance company to the provider and the patient explaining the allowed charge amount, the amount reimbursed for services, and the patient’s financial responsibilities.

Expletive

An oath or a swear word.

Federal Reserve Bank

The central bank of the United States. The Federal Reserve system consists of a seven-member Board of Governors with headquarters in Washington, D.C., and 12 Federal Reserve banks in major cities throughout the country.

Fee Schedule

A list of fixed fees for services.

Gross

The amount earned before any tax deductions or adjustments.

Guarantor

The person legally responsible for the entire bill. This is usually the patient, but in the case of a minor it would be a parent or legal guardian.

Incurred

To come into or acquire.

Indigent

Poor, needy, impoverished.

Intangible

Something of value that cannot be touched physically.

Interest

Money the bank pays to the account holder, based on the account balance, for the privilege of using the money in the account.

Negotiable Instrument

A document guaranteeing payment of a specific amount of money to the payer named on the document.

Net

The amount someone has paid after taxes and other deductions have been subtracted.

Patient Account

A running balance of all financial transactions for a specific patient.

Pegboard System

A manual bookkeeping system that uses a day sheet to record all financial transactions for the date of service and maintains patient account balances by using physical ledger cards.

Plaintiff

An individual or a party who brings the suit to court.

Reconciliation

To bring into agreement.

Salary

A fixed compensation periodically paid to a person for regular work.

Small Claims Court

A special court established to handle small claims or debts without the services of lawyers.

Tickler File

A chronologic file used as a reminder that something must be dealt with on a certain date.

Trustee

The coordinator of financial resources assigned by the court during a bankruptcy case.

Unsecured Debt

Debt that is not guaranteed by something of value; credit card debt is the most common type of unsecured debt.