Best Practice Guidelines: Healthcare Practice Management
9. Billing Corrections
Makes sure that corrections are done by authorised personnel by utilising the correct functions in the software. Checks all corrections on a daily and weekly basis to ensure that no unauthorised or unnecessary corrections were done. Ensures that only authorised personnel have access to do corrections.
Will process all billing corrections, eg Credit Notes, Redo Transactions and edit Invoice (Desktop App) functions. Utilises the appropriate functions for the different types of billing errors.
|Check that the proper correction was used. Credit notes will have an effect on the stock levels but journals not. Ensure when stock has been returned or not used on the patient that a credit note was done.|
||Will draw reports to check that corrections are annotated with the appropriate reasons and that only authorised personnel had access to do corrections.|
Purpose of Billing Corrections
All corrections on invoices MUST be done with Credit Notes so that the turnover is amended.
JOURNALS SHOULD NOT BE USED TO CORRECT ERRONEOUS INVOICES - your reporting will be incorrect as journals post to expense ledger accounts and won’t correct your turnover or cash flow.
Journals are ONLY used for the following purposes:
- Settlement discount,
- Small balance write off, and
- Bad debt written off.
Critical Steps of Billing Corrections
Credit Notes are used when incorrect debtors/patients were billed/invoiced or when incorrect items or procedure codes were used. In other words, a credit note will cancel the whole invoice for a specific service date.
In the Desktop App specific lines can be credited or quantities can be amended and it is therefore not necessary to credit the whole invoice. In the Web App, the whole invoice will be credited and can be redone.
Credit notes amend the turnover, VAT and stock of the practice and correct the patient’s account.
Reasons for using credit notes:
- Service was not rendered
- Stock was not used
- Invoice was made for the wrong debtor.
This function will automatically credit the invoice on the patient's account and will use the same date, treating and referring doctor, service centre and codes to create a copy of the cancelled invoice. Corrections can then be made on the invoice before posting the invoice again.Reasons for redoing a transaction:
- Incorrect quantity was used
- Incorrect amount was used
- Incorrect code was used
- Service center should be amended (Not applicable in version 7.6)
- ICD10 codes were incorrect (Web App)
- Incorrect Transaction date or Service date (Web App)
- Incorrect authorisation number (Web App)
- Incorrect patient (Web App).
Edit Invoice (Desktop App)
Other mistakes can be corrected by editing the invoice lines without doing a redo transaction or a credit note such as:
- Incorrect transaction date (Service date) - if specifically configured in the software
- Incorrect authorisation number
- Incorrect patient
- Incorrect ICD10
- Incorrect tooth numbers