NON-PATIENT BILLING POLICY

Transcription

1 NON-PATIENT BILLING POLICY PURPOSE The purpose of this policy is to establish a control mechanism over the billings for non-patient-related goods and services that will allow for: Receivable amounts and related revenue and expense amounts to be properly recorded in the financial statements; Timely collection efforts for unpaid billings to be provided; and Centralized review of non-paying customers to prevent further credit sales to these customers. This policy addresses the process of billing outside parties for goods and services provided by The University of Texas MD Anderson Cancer Center (MD Anderson) and the subsequent aging of accounts and collection efforts in order to ensure all current items are recorded as a receivable in the financial statements and that all uncollectible items are written off to expense. This process also assists in safeguarding the assets of the institution by allowing for centralized identification of non-paying customers so that measures can be taken to limit credit sales to those customers. POLICY STATEMENT It is the policy of MD Anderson that all billings that are non-patient-related or grants-related be billed and aged by the General Accounting Department (General Accounting), and that all receipts for payment of such bills be received by the Treasury Services Department. SCOPE This policy governs billings for non-patient-related goods and services and billings that do not relate to grants. For billings related to grants, please contact the Grants and Contracts Accounting Department. Compliance with this policy is the responsibility of all faculty, trainees/students, and other members of MD Anderson s workforce. TARGET AUDIENCE The target audience for this policy includes, but is not limited to, all faculty, trainees/students, and other members of MD Anderson s workforce involved in the capture and documentation of billing data. Page 1 of 5

2 DEFINITIONS Aging Report: A report that shows past due receivable items that are categorized by length of time outstanding, (e.g., 1 30 days; days; days; and 120+ days). Dunning Letter: A notice sent to a customer requesting payment of past due obligations. Dunning Letters are typically sent out in 30-day intervals beginning when an invoice becomes 31 calendar days past due and continuing until the invoice is 120 calendar days past due. Write Off: The reduction or elimination of a receivable item due to its uncollectibility, causing a reversal of the original receivable and revenue or expense entry to the related department. PROCEDURE 1.0 Initial Bill 1.1 When a transaction occurs for which a customer must be billed, the department providing the goods or services must provide General Accounting with the relevant billing information. General Accounting will provide a template for use as guidance in determining the important billing details. Once the billing information is finalized, General Accounting will generate a bill through the PeopleSoft Billing System and mail it to the customer for payment. 1.2 In order to ensure the accuracy of the reporting for the non-patient accounts receivable transactions, General Accounting management must approve the coding for all billings. 1.3 The billed item will be aged in the PeopleSoft Accounts Receivable System and will be subject to the Collection Procedures outlined in this policy. 1.4 The billing information must be provided to General Accounting within a reasonable time from the date of the transaction (typically, no more than 30 days). 1.5 An Aging Report will be generated in the PeopleSoft Accounts Receivable subsystem on a monthly basis and given to General Accounting management for review. 1.6 All invoices that are days past due will be subject to the Dunning Letter process outlined below. 1.7 All invoices that are 61+ days past due will receive Dunning Letters in addition to attempted phone or contact with the customer. 1.8 All significant contact with the customer will be documented in the PeopleSoft Customer Conversations Screen. 2.0 Returned Checks 2.1 For all returned checks, a service fee of $30.00 will be assessed at the time of billing for each returned check written by the customer. The returned check service fees may be waived by General Accounting management only if: A. A customer initiates an action within 30 days of the invoice date; B. There are no other stale outstanding accounts receivable for the customer; and C. The replacement payment for the returned check has been posted and verified. Page 2 of 5

3 2.2 Payments for returned checks may not be paid with another check. Instead, such payments must be made by: (1) cash (to be paid in person at an institutional cashier s office); (2) cashier s check; (3) money order; or (4) credit card. 2.3 Payments for all billings are to be sent to the lockbox address designated by Treasury Services or may be paid via credit card. 3.0 Collection Procedures Days Past Due: General Accounting will send a 30-day Dunning Letter Days Past Due: General Accounting will send a 60-day Dunning Letter and/or will attempt to contact the customer Days Past Due: General Accounting will send a 90-day Dunning Letter and/or will attempt to contact the customer. General Accounting will also update the related MD Anderson personnel on the status of the outstanding receivable items Days Past Due: General Accounting will send a 120-day Dunning Letter and/or will attempt to contact the customer. General Accounting will also inform the related MD Anderson personnel that the uncollectible account will be written off within two months if payment is not received. The affected department may choose to use this time to proceed with its own collection efforts. 3.5 Over 180 Days Past Due: General Accounting will Write Off the uncollectible amount with the approval of the Non- Patient Accounts Receivable (NPAR) Senior Financial Analyst in General Accounting. Page 3 of 5

4 ATTACHMENTS/LINKS RELATED POLICIES JOINT COMMISSION STANDARDS / NATIONAL PATIENT SAFETY GOALS OTHER RELATED ACCREDITATION / REGULATORY STANDARDS REFERENCES Financial Accounting Standards Board, Statement of Financial Accounting Concepts No. 6 Elements of Financial Statements. Generally Accepted Accounting Principles. Page 4 of 5

5 POLICY APPROVAL Approved With Revisions Date: 04/04/2017 Approved Without Revisions Date: Implementation Date: 04/04/2017 Version: 16.0 RESPONSIBLE DEPARTMENT(S) Office of the CFO Page 5 of 5