A write-off is the process of adjusting the difference between the billed amount and the amount paid by the insurance. For example, if a facility bills a certain amount for a service, and the insurance pays part of it, the remaining balance that is not covered by insurance is adjusted as a write-off. This ensures that the unpaid balance is properly accounted for in the facility’s records.
To adjust a write-off, follow these steps:
1. Apply Payment to the Deposit:
- In the Action column, click the three dots for the deposit line you want to adjust and select Apply Payment.
2. Provide the Necessary Information:
- Post By: Select the person posting the payment.
- Patient: Choose the patient associated with the payment.
- Date Range: Set the date range and click Show.
3. Apply the Write-Off:
- You will see two columns: Payments and Adjustments.
- In the Payments column, the contract amount (amount paid by the insurance) will be added.
- In the Adjustments column, the remaining balance (the amount being written off) will be added.
- Select Write-Off status from the Status menu.
4. Save the Changes:
- After reviewing the amounts, click Save to complete the write-off adjustment.