Self-Pay & Collections

 Policy: Kittson Healthcare, by obligation or as a courtesy, bills all patients’ third-party payers (TPP) prior to billing the patient. The same billing and reimbursement methods are available to patients regardless of the patient’s ability to pay. This policy goes into effect from and on January 1, 2020. 

Procedure: 

• Each patient with a Third Party Payer (TPP) is billed for any out of the pocket amounts stated by the TPP remittance advice, which includes for example any deductibles, co-pays, co-insurances, etc. If the patient has more than one TPP, Kittson Healthcare will bill each of those as appropriate prior to billing the patient. 
• Kittson Healthcare out sources all self-pay accounts with balances above $15.01 to a credit and collection vendor. This vendor sends bill notices and attempts telephone calls to encourage payment of the outstanding balance with Kittson Healthcare. Both Kittson Healthcare, and our collection vendor, notifies the patient of Kittson Healthcare’s reimbursement options which are:
  • Time Pay Plans – Payment plans are negotiated to pay the account balance in full within a reasonable amount of time. Except in unusual circumstances, payment plans will be approved based on the following guidelines. These plans do not accrue interest. 
    Payments are due every 30-days. At the end of the 30-days without a payment, a reminder notice is sent with a demand for the previous month’s payment and the current month’s payment. If no payment is received within 60-days, the account reverts to a standard balance due in full and the account reverts to the standard collection method. 
  • Prompt Pay Discounts – Kittson Healthcare offers a 10% prompt pay discount when the entire self-pay balance payment is received within the first 30-days of the billing cycle. Prompt Pay Discounts will be given to patients who are uninsured. 
  • Kittson Healthcare accepts Credit Card Payments. The credit cards we accept are: Visa and Mastercard

• Our collection vendor follows a standard billing timeline for balances $15.01 or greater. 
  • Day 0: Kittson Healthcare electronically generates account balances to the vendor 
  • Day 1: Vendor (Sanford) sends first bill notice to patient 
  • Day 31: If partial payment is not received, vendor sends a second bill notice 
  • Day 61: If partial payment is not received, the vendor sends a third past due notice 
  • Day 91: If partial payment is not received, vendors sends a final notice to the patient of past due bill and identifies actions to be taken if not paid within 30 days 
  • Day 121: Vendor sends review notice to Business Office Manager identifying accounts outstanding to determine if the accounts are to be send to collections. 

• If at any time during the collection process, the patient states that they do not have, or have very limited resources to pay for their healthcare services, the patient is given a Kittson Healthcare Community Care application and is encouraged to apply for the program. 
• If at any time during the collection process a Bankruptcy notice is received: o Accounts not with the vendor, the Business Office Manager will verify the patient’s name, address, and social security number and place account on hold stopping all collection activity until final notice received and/or account adjusted for bankruptcy. Actions taken documented on account. 
  • If account is with an outsourced vendor, they will verify the account information. If the data is a match, the outsource vendor will halt all collection activity including statements or phone calls until the account is canceled or restarted. 
  • If account is with an outsourced vendor, they will verify the account information and if matching data will halt all collection activity; will not send statements or make phone calls until the account is canceled or restarted. 
  • Vendor will forward the bankruptcy notice in the original envelope to the Kittson Healthcare Business Office. Document account of action taken. 
  • In 30-day intervals the account will be reviewed for status change. 
  • Day 91, will review with the Business Office Manager to determine action to be taken. Cancel account or restart collection cycle. 
  • Day 120, if no action taken, restart collection cycle at day 30. 

Written by Taylor Lindegard 

Approved by J.S. 12/31/2019