Best Practice Guidelines: Healthcare Practice Management & POPIA Compliance Framework: Debt Management: Roles, Purpose & Summary of Phases

Best Practice Guidelines: Healthcare Practice Management & POPIA Compliance Framework

Best Practice Guidelines: Healthcare Practice Management
&
POPIA Compliance Framework

GoodX online Learning Centre

learning.goodx.co.za

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14. Debt Management: Roles, Purpose & Summary of Phases

Responsible Roles

	Management Role: Ensure that notes on the Age Analysis are updated. Approve journals. Approve and check that all information is accurate on accounts to be handed over for debt collection. Ensure that the practice receives feedback on accounts handed over for debt collection.
	Operational Role: Follow a pre-designed debt collection cycle by completing tasks in each stage. Make notes, create daily tasks, and follow up on those tasks: contact medical aids and private patients for outstanding accounts. Accounts of 60+ days or older are URGENT accounts and must be dealt with immediately. Collect as many outstanding accounts as soon as possible to ensure healthy cash flow in the practice. Hand over outstanding accounts for formal debt collection. Journals must be posted to the correct Ledger accounts. Send outstanding patient accounts by email or SMS.
	Operational Role: Investigate the Age Analysis report regularly. Ensure that the Credit Controller followed up on outstanding accounts and accounts were handed over correctly. Ensure that correct journals were done and documentation is correct.
	Action maps: Collection stage: Information quality Communication to DS Compliance continuity stage: Updated information Confidentiality measures Post-use stage: Destruction of PI Restriction (Archiving)

Management Role:

Ensure that notes on the Age Analysis are updated.
Approve journals.
Approve and check that all information is accurate on accounts to be handed over for debt collection.
Ensure that the practice receives feedback on accounts handed over for debt collection.

Operational Role:

Follow a pre-designed debt collection cycle by completing tasks in each stage.
Make notes, create daily tasks, and follow up on those tasks: contact medical aids and private patients for outstanding accounts.
Accounts of 60+ days or older are URGENT accounts and must be dealt with immediately.
Collect as many outstanding accounts as soon as possible to ensure healthy cash flow in the practice.
Hand over outstanding accounts for formal debt collection.
Journals must be posted to the correct Ledger accounts.
Send outstanding patient accounts by email or SMS.

Operational Role:

Investigate the Age Analysis report regularly.
Ensure that the Credit Controller followed up on outstanding accounts and accounts were handed over correctly.
Ensure that correct journals were done and documentation is correct.

Action maps:
Collection stage:

Information quality
Communication to DS

Compliance continuity stage:

Updated information
Confidentiality measures

Post-use stage:

Destruction of PI
Restriction (Archiving)

Purpose of Debt Management

Debt Management is the effective control and administration of patient accounts. It is vital for the financial survival of the business to prevent bad debt and promote a healthy cash flow by collecting outstanding accounts from medical aids and private patients. The longer accounts are outstanding, the less likely it is that outstanding fees and expenses will be collected.

Debt Management Business Process Summary

The Debt Management Business Process diagram is divided into 4 phases, and each phase is divided into processes that need to be followed. The diagram illustrates the following phases:

Business Process Design
Process Audit
Account Clean-up
Collection Process.

The following sub-chapters will discuss each phase in more detail.

Debt Management Business Process Diagram:

◄ Previous: 13.1. Receipt Corrections Business Processes Next: 14.1. Phase 1: Business Process Design ►