Understanding Collections Policy: When is a Balance Considered Bad Debt?

Review the policy: Collections policy

Invoices not paid within 60 days begin our collection process. Invoices not paid within 120 days are subject to patient dismissal and submission to our collections agency and notification to your insurance plan. According to this policy, at what age is a balance owed by the patient considered bad debt and sent to the collection agency?

Final answer:

A balance is considered bad debt and submitted to a collection agency when it remains unpaid for 120 days according to the collections policy.

Explanation:

According to the collections policy provided, a balance owed by a patient is considered bad debt and sent to the collection agency when it has not been paid within 120 days. The policy clearly states that the collection process begins at 60 days, but it does not escalate to involving a collections agency and notifying the insurance plan until the invoice remains unpaid for 120 days.

Question:

According to the collections policy, when is a balance considered bad debt and sent to the collection agency?

Answer:

A balance is considered bad debt and sent to the collection agency when it remains unpaid for 120 days according to the collections policy.