Reference no: EM131148739

LaDon Williams is a self-pay patient at Broadmoor. He has not paid on his outstanding balance ($300) for 2 months. During a telephone conversation, Mr Williams agrees to come to the Clinic and discuss a credit plan.   He informs the reception staff that he can afford to pay only $10 a month on his delinquent account. The reception staff refuses to accept the payment, informing Mr Williams that the entire bill must be paid at once or his account will be turned over for collection. Can this situation possibly create a problem for Broadmoor Medical Clinic? If so, explain....

Payment and Collection Policy:

Broadmoor Medical Clinic expects payment for all medical services to be made at the time services are rendered. If you have health insurance, the clinic usually allows payment to be deferred (except for office copayments) until you receive your first statement. Payment for the full amount of your account balance is due and payable upon receipt of your statement. We realize that a person's current financial situation may sometimes not allow for the entire balance to be paid at one time. In such circumstances, appropriate alternative paymetn arrancegments may be made by contacting the staff in our busincess office. Account balances under $1000 will be paid as follows: 25% down at teh time services are rendered with the balance to be paid in three equal payments no more than 30 days apart.

Accounts will be considered delinquent if not paid within thirty (30) days of a statement or if any arranged payment terms with our busincess office staff are not honored. Interest, at the rate of ten percent (10%) per annum, will be charged on all account balances that are over 120 days old. The clinic accepts Discover, VISA, and MasterCard. The clinic retains the right to request payment at the time care is provided for certain elective services and when an account is delinquent or has previously been in a noncurrent status. Delinquent accounts may be referred to an outside agency for collection.