Bankruptcy - Best Practices
Through years of experience in managing account receivables for therapy practices across the country, WebPT has developed a series of best practices in A/R management.
To protect WebPT and our clients, we have a strict policy regarding patients who have filed for bankruptcy.
When we receive a notification, verbal or written, that a patient has filed bankruptcy, our first step is to always “NS” the patient’s account. We do not continue to send statements to patients who have filed bankruptcy.
If you only receive verbal notification from a patient that they have filed bankruptcy, request a hard copy of the bankruptcy notice and follow-up with the patient in 30 days to make sure you receive a copy of the notice.
Once you have a hard copy of the notice, the account balance should be removed from the working A/R using the ABAK adjustment code.
If the patient’s account has previously been sent to collections, notify the collection agency right away of the bankruptcy notice.
If your office chooses to pursue the outstanding balance in court, you are able to print all the ledger data and account history out of RevFlow.