Credit Control Guidelines

2. Credit control procedure

PURPOSE:

To have systems and procedures in place that will prevent bad debt and promote a health cash flow.

1. Monthly statement run : 

  • Every patient should receive a first account just after discharge at the final billing stage of the account.
  • Within the first week after every month-end all the unpaid accounts on the GoodX system must be printed and posted  / e-mailed to patients:
  • For all accounts in 60 days and older, there should be a message on the account stating the following.  “This account is now considerably overdue, please follow this URGENTLY up with your medical aid. We will have no alternative but to hold you responsible for the payment of this account if it is not paid by your Medical Aid within the next 15 days.” 
  • For accounts where the medical aids short-paid, the following message should appear on the accounts:  “Your medical aid did not pay your account in full. Please attend to the payment of the balance within the next 15 days”

2. Telephonic Credit Control – Medical Aids :

If a medical aid account has not been paid within 30 days after the electronic submission, the following needs to be done:

  • On a two-weekly basis we need to phone the medical aids to get confirmation of the following:
  • Did they receive our accounts?
  • If, yes – when can we expect payment, what is causing the delay?
  • If no, resubmit via EDI again.
  • Always make notes on the system regarding your conversations.

Use the same opportunity to do your queries on short payments, etc

3. Telephonic Credit Control – Private Patients and Medical Aid Short Payments:

  • Ensure that the patient knows about the balance due to the day hospital
  • Ensure that the patient received a statement
  • On a two-weekly basis phone the patients to try and secure a payment.
  • Always make notes on the system regarding your conversations.

4. The management of your age analysis:

  • Print you age analysis at least every second week.
  • Follow up on all accounts in 60 days and older.
  • Make sure that there are notes on the system that shows the action taken on these accounts.

5. Bad Debt administration

Before an account can be handed over for legal action the following needs to be in place:

  1. Notes on GoodX which serve as proof that all necessary credit control actions have been performed.
  2. Print the detail account;
  3. Complete a Bad Debt Handed Over Form and ask the Day Hospital Manager to sign it off:
  4. The Bad Debt Handed Over Form should contain the following information:
    • Name and Surname of the Guarantor.
    • ID Number
    • Patient account number
    • Amount to be handed over
    • Reason why account should be handed over.