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Bankruptcy Question

  1. #1
    Default Bankruptcy Question
    Medical Coding Books
    Hi I need help with a bankruptcy question. We have a patient that filed, and was granted a dismissal of their debt through the bankruptcy courts. Prior to filing bankruptcy, the patient has received a check for an anesthesia services perfomed at our practice. We did not participate w/the patient's insurance so the check was sent to the patient. The patient cashed and kept the check in the amount of $940.00. Our billing person has tried numerous times to collect this balance from the patient but was unsuccesful. My question is do we now have to write off this amount since the patient was excused of all of her debt? We never saw a prior notice from the courts granting us time to appeal this decision.

  2. #2
    Columbia, MO
    check on this, but you will probably need an attorney. First a patient is not allowed to profit from an illness if the provider has not been paid. and second I was under the understanding that in bankruptcy medical was exempt from forgiveness. But it has been awhile since I was in the legal arena and things do change and vary from state to state.

    Debra A. Mitchell, MSPH, CPC-H

  3. #3
    Lauderdale Lakes
    I have always gotten bankruptcy for medical where ever I worked. It is not exempt but we did get a notice before hand in case we wanted to appeal this

  4. #4
    I know it's a bit late but if the patient cashed the check and will not send the payment to you, you need to contact the insurance and inform them that the patient is withholding the money. That payment is processed under the providers Tax ID#. The insurance will have to go after the patient for the money.

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