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Best Practices when Paying Providers on Collections


If you are paying providers on collections, it is essential that procedures and payments are properly linked to providers. In this post, we will discuss which Account Module Preferences to use,  which reports to run, and some tips on entering information.
If you’re paying your providers on Production, see this post.


Account Module Preferences

Setting the following Account Module Preferences as follows:

Enforce Valid Paysplits: We recommend setting this to Auto-Split Only. This keeps accounts organized and ensures all payments are allocated.

Allow Prepayments to Providers: We recommend this remain Unchecked. When paying on collections, prepayments to providers can cause problems. Things get messy if the patient pays, but decides later not to get the work done, or if a different provider ends up doing the work.

Enforce Valid Adjustments: We recommend setting this to Link Only. Linking adjustments to procedures can help staff identify why the collection amount on a procedure differs (e.g. an office discount).

Payment Exceeds Procedure Balance: We recommend setting this to Warn. If you are entering an insurance payment, it is vital the insurance amount and write-off are correct. This setting will warn you if there is too big of a write-off or payment. You can review for any data entry errors or contact the insurance to correct any issues with the EOB.

Prompt user to allocate unearned income after creating a claim: We recommend having this setting Checked. If a patient has unearned income, and you create a claim, this window pops up as a reminder to allocate the unearned income. It does not necessarily mean the claim is problematic, it is just a reminder to clean up the account while you’re there.


Production and Income Report: Run this report to see a snapshot of how a provider is doing. This will display income from previous services and patient portions collected.

* The Write-off option doesn’t matter here since it doesn’t affect collection.
* You can run either the P&I Report or Daily Payments Report for a date range to get total collections. The numbers should match no matter which report is run.

Patient Portion Uncollected: Run this report daily. This report shows money owed to you by patients. If procedures do not have payments specifically allocated to them, they will continue to show on this report. This report helps you identify those immediately so providers can be paid properly.

Procedures Overpaid: Run this report weekly and before the payroll period ends. Remember, since providers are linked to procedures, if a procedure is overpaid, then the provider is overpaid. This can cause a scenario where providers owe the practice money, something you’ll want to avoid.

Unearned Accounts: If your office accepts prepayments, run this weekly to ensure unearned income gets allocated.

Procedures Not Billed to Insurance & Claims Not Sent: Run these reports daily. These reports ensure all procedures are attached to claims and sent to insurance. This will help the office stay on top of collection eligibility.

Other Key Points

Here are some other things to keep in mind.

  • Enter all refunds as negative payments (NOT adjustments).
  • Always post insurance payments by procedure.
  • Perform an Income Transfer prior to issuing refunds.
    • If there is a credit on the account, it should be in Unearned.
    • If refunding a patient, the Income Transfer will take the credit and turn it into unearned. Then, perform the refund using the newly created unearned amount.

By setting your preferences properly, running reports routinely, and accurately associating payments to providers, paying providers on collections becomes much easier. If you have questions about any of these preferences or need help with a patient account, please feel free to Reach Out!

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