C H A P T E R 10 Medical Office Management. Copyright © 2008 Thomson Delmar Learning, a division of...

C H A P T E RC H A P T E R

1010 Medical Office Management

Copyright © 2008 Thomson Delmar Learning, a division of Thomson Learning Inc. All rights reserved.

10 - 2

Safety, Security, and Emergency Plans in the Medical Office

11U N I TU N I T


10 - 3

Safety in the Reception Room

Observe the condition of the furniture. Check the state of the electrical cords. Look for burned-out light bulbs. Check the condition of the carpet and

make sure the aisles are clear.


10 - 4

Hazards in the Receptionand Business Area

Magazines and toys can lead to trip and fall injuries.

Electrical cords can lead to fires or trip and fall injures.

Open file drawers and cupboard doors can cause injury.


10 - 5

Unsafe Items in an Examination Room

The exam table must be stable to prevent injury.

Stools can cause injury. Containers of medical supplies on the

counter can cause injury or poisoning.


10 - 6

Fire Safety

Fire is caused by three elements, called the fire triangle.

Routine fire drills and training for the office staff on the proper use of fire extinguishers are both necessary.


10 - 7

Preventing Exposure to Pathogens

The staff must be trained to use and follow all Standard Precautions.

Clean up all spills promptly as directed.


10 - 8

Unit Summary

What would you look for when performing a safety check in the reception area?

What are the six items named in this unit that provide protective barriers against pathogens?


10 - 9

The Language of Banking22

U N I TU N I T


10 - 10

Savings and Checking Accounts

Savings accounts A bank account that earns the depositor

interest Checking accounts

A bank account that checks can be written against


10 - 11

ABA and MICR Codes

American Bankers Association (ABA) codes

Found on the upper right-hand corner of the check

Identify the bank and the branch where the account was opened originally

MICR codes Characters and numbers printed in magnetic

ink along the bottom of the check


10 - 12

Banking Terminology

See Unit 2 of your text, which describes more than 40 banking terms and also provides illustrations.


10 - 13

Types of Checks

Cashier’s checks Purchaser pays the bank to write a check

from the bank’s account as a form of guaranteed payment

Certified checks Bank stamps the check “certified” and holds

the funds until the check clears as a form of guaranteed payment

(continued)


10 - 14

Types of Checks

Electronic check A check paid directly from the checking

account via the Internet Limited check

A check that the bank will mark void if it is written for over a certain amount

(continued)


10 - 15

Types of Checks

Stale check A check presented for payment too long

after it was written Traveler’s check

Checks issued by the bank for a specific amount; they are signed at the time of use and guaranteed by the bank to be replaced if they are lost

(continued)


10 - 16

Types of Checks

Voucher check A check that has a detachable form that

shows the reason the check was written Money orders

Another form of a check that can be bought for a fee as a form of guaranteed payment


10 - 17

Overdraft versus Overdrawn

Overdraft accounts Allow the individual to write checks for over

the amount of funds in the account. The amount used that is over the account balance is considered a loan and interest is charged.

Overdrawn There are not enough funds in the account

to cover the check.


10 - 18

The Stop Payment Process

Call the bank and provide the following information:

Check number Date issued Amount of the check Name of the payee Reason for stopping payment


10 - 19

Unit Summary

How would you decide if a check is a cashier’s check or a certified check?

What is the difference between an overdraft account and being overdrawn?

When would you use a voucher check?


10 - 20

Currency, Checks, and Petty Cash33

U N I TU N I T


10 - 21

Handling Currency in the Medical Office

Currency is the name given to cash money in the form of paper dollars.

Cash money includes both currency and coins.

The office must be sure to provide a secure place for storing cash and it should be deposited into the bank daily.


10 - 22

What Makes a Check Negotiable?

To ensure that the check will be honored and cashed by the bank, verify the:

Date Presence of the words “pay to the order of” Name of the payee

(continued)


10 - 23

What Makes a Check Negotiable?

The amount of the check is written numerically

The amount of the check is written out in words

Financial institution information is present

The check must be signed.


10 - 24

Guarding against Check Fraud

Examine the check for the following: Preprinted name and address of the maker Chronological check number Presence of an ABA number Presence of MICR numbers Presence of one rough or perforated edge


10 - 25

Accepting Checks from Patients

Examine the check to make sure it is negotiable.

As a rule, do not accept checks from third-party payers.

The exceptions are checks from attorneys or workers compensation payments written directly to the physician.

(continued)


10 - 26

Accepting Checks from Patients

Do not accept: Checks written for more than the amount of

the service, especially if the patient is requesting cash back

Checks marked as “payment in full” unless you verify that it does pay the account balance in full

A postal money order with more than one endorsement (two endorsements is the limit honored).


10 - 27

Endorsements

Endorsement Signatures and other information that

appears on the back of the check that transfers the rights of the check to another party

(continued)


10 - 28

Endorsements

Blank endorsements Signatures only: The checks should be

endorsed immediately prior to deposit. Restrictive endorsements

Stamps or written information that restricts the transfer of rights, such as “deposit only” or “pay to the order of”


10 - 29

Mail Deposits

Avoid sending cash or currency unless it is sent by registered mail.

Restrictive endorsements should appear on all checks.

Maintain accurate records. Keep a copy of all checks and deposit

slips submitted. Request a receipt.


10 - 30

Petty Cash Funds

Petty cash is the small amount of cash an office keeps on hand for small expenses such as postage and office supplies.

Careful records are maintained with vouchers completed each time funds are withdrawn.


10 - 31

Unit Summary

Where would you find the ABA and MICR features on a check?

What is the purpose of a restrictive endorsement?


10 - 32

Employee Salary, Benefits, and Tax

Records44U N I TU N I T


10 - 33

W-4 and W-2 Forms

W-4 form Employees’ withholding allowance certificate Identifies the number of exemptions being

claimed W-2 form

Annual statement of earnings and deductions

Sent to each employee by January 31 of each year for tax purposes.


10 - 34

I-9 Forms

I-9 forms Employment Eligibility Verification form Issued by the Department of Justice,

Immigration and Naturalization Service Assures the employer that the individual has

legal permission to work in the United States


10 - 35

Items Needed for Payroll Records and Personnel Files

Employee information: name, address, phone number

Social security number Date of employment Salary Gross earnings Individual deductions Net earnings


10 - 36

Hourly Wages and Salary

Hourly wages Computed by multiplying the number of

hours worked by a specified amount of money

Salary Represents either hourly wages or an

agreed upon amount that is paid annually for service provided by the employee


10 - 37

Gross and Net Salary

Gross salary is the amount earned prior to deductions.

Net salary is the amount earned after deductions.


10 - 38

Factors That Affect Federal Tax Withholdings

Four factors that affect federal tax withholdings:

1. Amount earned2. Marital status3. Number of exemptions claimed4. Length of the pay period


10 - 39

Salary Benefits

Vacation Holidays Sick time Personal time Disability and life

insurance

Bereavement Jury duty Paid time off Insurance Profit sharing


10 - 40

Unit Summary

What are the four factors that affect the amount of federal income tax withheld?

How would you describe gross and net salary?


10 - 41

General Management Duties55

U N I TU N I T


10 - 42

Refunds to Patients

The office manager must verify that there has been an overpayment on the account prior to approving reimbursement to the patient.


10 - 43

The Problem with No Shows

Patients who do not show up for their appointments cause a loss of revenue for the office and may even prevent another patient from being seen by the physician.


10 - 44

Ensuring Inventory Supplies

The office manager generally creates a card or electronic filing system of suppliers that the office uses.

This system lists: The supplier and contact information Materials ordered from the supplier Amounts generally ordered and the cost

(continued)


10 - 45

Ensuring Inventory Supplies

The office manager generally creates a tracking system for all materials and supplies that includes:

Amount that should be on hand Amount on hand Date of last order Storage requirements Cost


10 - 46

The Importance of Attention to Office Equipment

It is not possible to give quality care to patients with faulty or inadequate office equipment.

Contracts for routine maintenance may be in place and equipment should be replaced or purchased according to the needs of the office.


10 - 47

Organizations That Inspect Physicians’ Offices

Insurance companies CLIA (Clinical Laboratory Improvement

Amendments) COLA (Commission on Office Laboratory

Accreditation)

(continued)


10 - 48

Organizations That Inspect Physicians’ Offices

Occupational Safety and Health Administration (OSHA) for evaluation of office safety compliance

Local or state boards of health Drug Enforcement Agency (DEA) for

compliance


10 - 49

Manager’s Responsibilities

To employees: Interview, hire, and terminate employees Supervise and train employees Conduct staff meetings Arrange work schedules Arrange vacation schedules Conduct performance evaluations

(continued)


10 - 50

Manager’s Responsibilities

To the physician: Report employees’ salary increases and

benefit changes Assist in creating or updating office policies Attend meetings to update management

skills Update the physician on staff and insurance

company changes Order materials and supplies


10 - 51

Facility Responsibilities

Purge medical records.

Purge x-rays. Arrange for

storage of purged materials.

Suggest repairs or improvements.

Clean and store or discard irrelevant items.

Maintain a clean office.

Monitor and pay all utilities.


10 - 52

Unit Summary

What office equipment requires frequent attention?

How would you describe the responsibilities of the office manager to the employees?


10 - 53

Keys to Career Success

The successful medical assistant may look forward to becoming an office manager.

Taking the additional responsibility for banking or maintaining equipment provides an opportunity for personal and professional growth.


10 - 54

Hot Links to Career Success

www.btcc.com Bankers Training and Certification Center

www.epracticemanagement.org The American Academy of Medical

Management

http://www.btcc.com/

http://www.epracticemanagement.org/

C H A P T E R 10 Medical Office Management. Copyright © 2008 Thomson Delmar Learning, a division of...

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Transcript of C H A P T E R 10 Medical Office Management. Copyright © 2008 Thomson Delmar Learning, a division of...