Deck 14: Financial Arrangements and Collection Procedures

Question 1

Which of the following is not considered to be a level one collection reminder?

A)If your payment is not received in 10 days,your account will be referred to a collection agency.
B)Prompt payment for regular dental checkups is appreciated.
C)If there is any reason for not paying this balance,please contact us.Thank you.
D)Have you overlooked your balance due? You agreed to send a check after your recall appointment.

Answer 1

If your payment is not received in 10 days,your account will be referred to a collection agency.

Question 2

The person identified as the _______ on a child's patient registration form must be informed of treatment and must authorize any payment plan before treatment begins.

A)financially responsible party
B)guardian
C)parent
D)patient

Answer 2

financially responsible party

Question 3

After turning an account over to the collection agency,the dental practice should continue to make every effort to collect the outstanding balance.If the patient contacts the dental practice to make payment arrangements,the practice is under no obligation to pay the collection agency.

A)The first statement is true;the second statement is false.
B)The first statement is false;the second statement is true.
C)Both statements are true.
D)Both statements are false.

Answer 3

Both statements are false.

Question 4

Which of the following statements is true?

A)Open-ended questions are effective when a collection call is placed.
B)Patients usually complete their scheduled treatment even when they owe the dentist money.
C)It is unusual for a patient to become angry during a collection call.
D)You will get better results,when placing a collection call,with a voice that is commanding,authoritative,and judgmental.

Question 5

All of the following are elements of a financial policy,except:

A)community standards.
B)practice philosophy.
C)business principles.
D)copayment levels.

Question 6

A collection agency charges the dental practice _______ to take over the collection process.

A)10%-20% of the balance due
B)20%-30% of the balance due
C)30%-50% of the balance due
D)a predetermined flat rate

Question 7

What has proved to be the most effective method for collecting unpaid bills?

A)Repeated bills
B)Letters
C)Telephone calls
D)E-mail messages

Question 8

An account aging report can be described as:

A)an analysis of the length of time that has elapsed since a charge was made.
B)the length of time since the last payment was made on the account by the patient.
C)the length of time between filing an insurance claim and receipt of payment.
D)the length of time after the insurance payment and receipt of the patient's portion.

Question 9

A level three collection procedure should be initiated after _____ days.

A)30
B)60
C)90
D)120

Question 10

Fill in the blank: _______ is a series of reminders that payment is past due.

A)A credit report
B)Skip tracing
C)The collection process
D)A divided payment plan

Question 11

You are placing a call to a patient who is more than 90 days past due on the account.The patient states,"Let me talk to the dentist,he is an old friend." Which of the following should be your response?

A)"The dentist is busy with other patients and cannot be disturbed."
B)"I will let the dentist know that you wish to speak with him and he will return your call."
C)"You could resolve this problem if you just paid your bill on time."
D)"The dentist has given me the responsibility of making the financial arrangements."

Question 12

A "telephone reminder" call should not be made _______.

A)before 9 AM
B)after 8 PM
C)before 8 AM
D)both a.and b.

Question 13

Fill in the blank: One advantage of a/an _______ is that an external agency assumes the risk for collecting the charges.

A)outside payment plan
B)divided payment plan
C)credit card payment
D)both A and C

Question 14

An ultimatum letter should be sent:

A)along with a final bill.
B)from the dental practice's attorney.
C)registered mail with a return receipt.
D)first class mail with a return address envelope.

Question 15

Which of the following is not recommended when skip tracing a patient?

A)Send a registered letter and request a return receipt.
B)Compel the patient to accept a collect call.
C)Contact the patient's friend or relative (provided on the patient's registration form).
D)Contact the patient at work.

Question 16

Credit card payments for dental services are considered to be a(n):

A)extended payment plan.
B)flexible payment plan.
C)delayed payment.
D)cash payment.

Question 17

Which of the following types of correspondence is not permitted under the Fair Debt Collection Guidelines?

A)Ultimatum letter
B)Postcard
C)Collection letter
D)Repeat billing

Question 18

You are asked to articulate the practice philosophy to a new patient,but you would like to review it first.Where could you find a description of this philosophy?

A)In the job description given to you when you were hired
B)In the financial policies manual
C)In the practice's mission statement
D)In the State Dental Association handbook

Question 19

After the treatment plan has been developed,the financial plan will be written up and presented to the patient.Whose responsibility is it to monitor compliance with the plan and initiate collection procedures when the plan is not followed?

A)The office manager
B)The dentist
C)The administrative dental assistant
D)The bookkeeper

Question 20

Which of the following statements is false?

A)Credit reports list the names of all creditors,all amounts owed,and payment history.
B)The dental practice can,at any time,request a patient's credit report from the credit reporting agency.
C)Credit reports can be used by the dental practice to determine payment patterns.
D)Accounts that have been turned over for collection are identified on a credit report.

Question 21

A billing statement should include:

A)a return envelope.
B)a summary of the payment policy (printed on the back).
C)a description of each transaction,in terms that the patient will understand.
D)all of the above

Question 22

Accounts are considered current if the patient has not received the first statement and the money has not been owed for longer than _______.

Question 23

Stickers or stamps placed on the statement signify which level of the collection process?

A)Level one
B)Level two
C)Level three
D)Level four

Question 25

A copayment is the portion of the dental statement for which the insurance company is financially liable.