Bad Debt Write-offs - Should Reduce Accounts Receivable but NOT alter Net Production
This is to request that OMSVision create an adjustment that is excluded from production or the billed charges column in a patient's ledger. When a patient's balance is written off, accounts receivables is correctly reduced; however, the adjustment decreases net production. This presents an inaccurate production and inaccurate collection ratio. A bad debt write off should reduce AR but leave net production correct. Thank you for considering this request.
SusanH
shared this idea
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Janette Whittington (Certified Trainer)
commented
Actually within OMSV, you do not have to write off the balance. Simply move the patient into billing cycle 4 (collections) and do not include that cycle when running your Aging report or statements. Most offices write off balances simply because that is always they've had to do it, or that is the way they did it in their old software. Leaving the balance on but in cycle 4 also saves you having to do extra adjustments when (if) the payment comes in from the collection agency.
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SusanH
commented
There is an option to exclude an adjustment from allocations, but this unfortunately does not prevent the write-off from reducing the production charges. When an account is sent to a collection service, and we receive payment, but have to write-off the collection agency's fee, it is not correct for our production to be reduced by that collection agency's fee. When we write off bad debt, it appears that we have a 100% collection rating. Thank you for considering this important request.