Crucial Exams

AAMA CMA Practice Question

Which statement about referring unpaid patient accounts to an outside collection agency is accurate for most medical practices?

  • The Fair Debt Collection Practices Act obligates physicians to refer unpaid balances to a collection agency within 30 days.

  • Federal law requires all healthcare providers to wait at least 120 days from the first billing statement before referring an account to collections.

  • There is no specific federal mandate on how many days a private medical practice must wait before sending an account to collections; timing is determined by office policy and state law.

  • Nonprofit hospitals are prohibited from using outside collection agencies under Internal Revenue Service regulations.

AAMA CMA
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