Hca340: Managing In Health & Human Services

629 words - 3 pages

Charity Care can be very helpful when a patient is having a rough time. Some patients have little to no money to live making it even more difficult to pay for bills they didn’t see coming in the first place. Unexpected bills can make patients feel helpless. When this occurs the hospital can offer support by offering Charity Care. Charity Care exists due to anonymous donations and organizations that want to help the less fortunate. The monies that are given by donation sits in an account to be used for the patients mentioned above. Each hospital is different, even by state. Each state also sets its’ own regulations for Charity Care having specific guidelines it has to go by.
Charity Care and Bad Debt in the health care world are two very different things. Charity Care allows the patient to get help with their bill to resolve the debt they have gained with the health care ...view middle of the document...

After a set period of time the institution will starting sending out bills to the patient. If nothing is paid or the patient does not make arrangements within a set amount of time the health care institution will start calling the patient about the bills.
Patient Financial Services personnel determines which category the patient’s uncollectible accounts should be placed under by the patient’s information they have given to the institution. The patient can also assist in this process by calling the institution to let them know they need assistance. The facility usually already has the patient’s information such as the patient’s insurance information or lack thereof. There is different ways to determine if a health care facility will help with Charity care or another form of assistance with a patient’s financial needs. Some facilities help with low income patients, some handle the wealthier patients, some help with tax exempt, and some help with those listed and many others depending on which facility the patient goes to.
The financial implications of gross uncollectable in a healthcare institution can be pretty harsh. If not enough debt is collected and the debts keep piling up without getting paid the hospital can go into financial ruin. After these debts keep going without being paid for a prolonged period of time the hospital has two different options. The facility could either sell the bad debt to a collection agency, the sale would be recorded in the medical facility’s books, but not as an expense, or the facility could write the bad debt off as an expense on the income statement. A debt that is deemed uncollectible by the financial department is subsequently written off. A probable one-time extraordinary expense incurred by a financial institution that negatively affects earnings. It can result in a write down of some of the financial institution’s assets. The write down arises due to impairments of assess.


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