ED Coding & Reimbursement Alert - 2019 Issue 6
Reader Question: Know When It’s Ok to Write Off a Patient’s Bill
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Article Overview
This reader question and answer discusses when a practice may be able to write off patient charges after collection attempts fail. It focuses on general compliance and billing considerations for practices dealing with unpaid balances, bankruptcy, Medicare-related noncoverage situations, payer contract limitations, and documented financial hardship. The article is relevant to billing staff, compliance personnel, and practice managers who need a broad understanding of when write-offs may be appropriate.
Why This Topic Matters
Knowing the broad circumstances that can justify a write-off helps practices manage unpaid balances while staying aligned with payer rules, internal policy, and compliance expectations. It also highlights the importance of documenting collection efforts and having a consistent financial-hardship policy.
Article Sections
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Question
The reader asks about handling unpaid patient balances after routine collection options have not resolved the debt.
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Answer
The response outlines general categories of situations that may lead a practice to consider a write-off and notes the need for consistent policy handling.
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Financial-hardship policy guidance
The article discusses establishing a written policy for evaluating financial hardship and documenting the types of proof a practice may request.
What You Will Learn
- Common nonpayment scenarios that may lead a practice to consider a write-off
- The role of collection efforts and documentation before writing off a balance
- How bankruptcy, payer contract terms, and financial hardship can affect patient balances
- Why practices should maintain a written financial-hardship policy and apply it consistently
Who Should Read This
- Medical billing staff
- Practice managers
- Compliance personnel
- Office administrators
- Revenue cycle teams
Codes Discussed
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