Posting Transactions on Bad Debt Encounters

Transaction Description	Type	Source	Sign Type
Bad Debt Agency Fee	Adjustment	Patient	Negative
Bad Debt Agency Payment	Payment	Patient	Negative
Bad Debt Final Write Off	Adjustment	Patient	Negative
Bad Debt Insurance Adjustment	Adjustment	Third Party	Negative
Bad Debt Insurance Payment	Payment	Third Party	Negative
Bad Debt Patient Payment	Payment	Patient	Negative
Bad Debt Recovery	Adjustment	Patient	Positive

Help Guide for NextGen® Enterprise PM 8

Processing Pre-Listed Encounters to Bad Debt

When the Encounters Pending Bad Debt report is reviewed, and only pre-listed encounters that are turned over to a collection agency remain on the report, those encounters can be processed to Bad Debt. You can process pre-listed encounters to bad debt in two ways: From the Encounters Pending Bad Debt report. This is the preferred method to do a final review of the pre-list report and/or to save a copy of the final pre-list report before processing encounters to bad debt. Without using the Encounters Pending Bad Debt report. This is the preferred method if a final review of the pre-list has already been done and a copy of the pre-list has already been saved. Process Encounters to Bad Debt from the Encounters Pending Bad Debt Report You can process encounters to bad debt from the Encounters Pending Bad Debt report. Process Encounters to Bad Debt without using the Encounters Pending Bad Debt Report Encounters in Bad Debt Status Pre-Listed Encounters Excluded from the Bad Debt Process Encou

Help Guide for NextGen® Enterprise PM 8

Adding Encounters to the Pre-List for Bad Debt

You can add encounters to a pre-list for bad debt from the Account Profile for the guarantor, or from the Patient Chart. Each encounter to be pre-listed for bad debt must meet the following conditions: The encounter must have a status of Billed. The insurance balance on the encounter must be $0.00. Note: If an encounter has an Ins1 Amt, Ins2 Amt or Ins3 Amt balance in Balance Control, the insurance balance(s) will be moved to the Pat Amt bucket when the encounter is pre-listed. The patient balance must be greater than $0.00. The encounter cannot have a credit balance. The encounter cannot have unposted transactions. Pre-List Encounters from the Account Profile You can pre-list encounters from the Account Profile on the Pre-List Multiple Encounters from Account window. Pre-List Encounters from Patient Chart You can pre-list encounters from the Patient Chart on the Pre-List Multiple Encounters From Chart window. Parent topic: Bad Debt Process

Help Guide for NextGen® Enterprise PM 8

Encounters Previously in Bad Debt Status

When a bad debt encounter is paid or adjusted in full and the balance becomes $0.00, the encounter status changes from Bad Debt to History. Prevent Bad Debt encounters from going to history status option is available on the Transactions tab in the Practice Preferences window, when this option is enabled, it prevents $0.00 balance bad debt encounters from going to History status, instead retaining in the Bad Debt status. You can use this option for tracking and reporting purposes. When you enable Prevent Bad Debt encounters from going to history status option, only current and future bad debt encounters will retain a status of bad debt. Previous bad debt encounters with a $0.00 balance are not affected and remain in History status. If you clear this option, all $0.00 balance bad debt encounters immediately change to History status. Since enabling the option applies the logic on a go forward basis, the History encounters cannot be reverted to Bad Debt status. When the Prevent Bad Debt en

Help Guide for NextGen® Enterprise PM 8

Post a Transaction on a Bad Debt Encounter

Open NextGen® Enterprise PM. Select Posting. The Batch Posting window opens. Select the batch, and then right-click the selected batch and select Open. The Payment Entry window opens. In the Source field, select Encounter. Open the desired Patient and then open a bad debt Encounter. In the Payer field, select Patient. Enter tracking information in the Tracking field, if needed. Add any additional notes or comments in the Transaction Notes field, if needed. Enter the payment amount in the Pay Amt field, and then select the appropriate bad debt Pay Code. Enter the adjustment amount in the Adj Amt field, and then select the appropriate bad debt Adj Code. The payment and adjustment amounts are automatically allocated to line items with a patient balance. Select Recalc. To save the transaction, select Save. Parent topic: Posting Transactions on Bad Debt Encounters

Help Guide for NextGen® Enterprise PM 8

Bad Debt Process

When you move one or more encounters on a guarantor's account to bad debt, there is no need to adjust balances off from the Accounts Receivable (A/R). NextGen® Enterprise PM maintains a Regular A/R and a Bad Debt A/R. Before encounters can be moved to a Bad Debt status, they must first be added to a pre-list, which means the encounters are placed on the Encounters Pending Bad Debt report. When encounters on the report are reviewed and approved for collections, the pre-listed encounters are then processed for Bad Debt, and any outstanding balances are transferred to the Bad Debt A/R. Adding Encounters to the Pre-List for Bad Debt You can add encounters to the pre-list for bad debt. Reviewing Encounters on the Pre-List for Bad Debt You can review encounters on the pre-list for bad debt in Encounters Pending Bad Debt report. Modify Encounters on the Pre-List for Bad Debt You can modify encounters on the pre-list for bad debt on the Pre-List Encounter window. Removing Encounters from the P

File Maintenance Help for NextGen® Enterprise 8

Setting Up of Bad Debt Transaction Codes

Transaction codes are set up in the Transaction Codes master file as Bad Debt transaction codes only. When payments and adjustments are posted against encounters that are in Bad Debt status, the Bad Debt transaction codes are the only ones that are available to use. To set up bad debt transaction codes: In File Maintenance > Master Files > System select Transaction Codes. Do one of the following: Double-click the applicable transaction code. Select the Open Menu button, then select New. The Add/Modify Transaction Code Information window displays. In the Type field, select Payment. In the Source field, select Patient. Select the Bad Debt Only check box. Select the Allow sign over ride check box. Select OK. To prevent out-of-balance conditions from occurring between the accounts receivable and the general ledger with regard to bad debt, open the Transactions Practice Preferences, and then select the Show bad debt charges (Account Level) check box. Users will not be able to use unapplied

Posting Transactions on Bad Debt Encounters

Recommendations

Processing Pre-Listed Encounters to Bad Debt

Adding Encounters to the Pre-List for Bad Debt

Encounters Previously in Bad Debt Status

Post a Transaction on a Bad Debt Encounter

Bad Debt Process

Setting Up of Bad Debt Transaction Codes

Processing Pre-Listed Encounters to Bad Debt

Adding Encounters to the Pre-List for Bad Debt

Encounters Previously in Bad Debt Status

Post a Transaction on a Bad Debt Encounter

Bad Debt Process

Setting Up of Bad Debt Transaction Codes