Billing and Receivables > Handling Billing Statements

Understanding Account Aging

The current, 30-, 60-, and 90-day aging amounts for patients and accounts are automatically calculated by the software. These aging amounts are used in printing billing charges, finance charges, and messages to overdue accounts on statements.

Account aging is based on all transactions in the account. Patient aging is based on transactions assigned to the patient. The patient/account balance consists of any charges that remain after all credits have been applied.

Payments are applied and aging is calculated in the following order:

• Insurance checks received with an assigned claim number:Used to pay off the deferred insurance portion of the charges on the claim. Any check overpayments are applied to the patient portion of the claim charges. The oldest charges on the claim are paid first. If the insurance check is less than the deferred amount, the difference is added to the account’s amount due. The account’s amount due begins to age on the claim’s completion date.

• All credits:Applied toward the oldest account balance.

• When posting personal checks:The deferred insurance portion of outstanding claim charges is always held current and always paid off last.