Payments > Patient Billing

Charging Interest on Patient Balances

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platmedrec1:
I have a client that wants to charge interest on bills that go unpaid.  Is there a formula you use to calculate the amount charge?  Example: 21.5% on $11340 - how do I figure out how much interest to add each month?

I have never done interest before - my other clients charge a flat "administration fee" for re-billing.
Thanks!

PMRNC:
You should check your state collection laws on this first. Some states allow interest, some have caps, and some don't let you do "interest" but do allow for late fees.

platmedrec1:
Any ideas on how to find this for Indiana?  I have "googled" it but can't seems to find the actual law.

Mazie:

--- Quote from: platmedrec1 on December 28, 2011, 04:34:19 PM ---I have a client that wants to charge interest on bills that go unpaid.  Is there a formula you use to calculate the amount charge?  Example: 21.5% on $11340 - how do I figure out how much interest to add each month?

I have never done interest before - my other clients charge a flat "administration fee" for re-billing.
Thanks!

--- End quote ---

It's doubtful the provider can legally charge interest unless patients signed an agreement in advance accepting it. Personally, I would never go to a physician who did that, especially one who charged almost 22 percent interest. That amount would put the provider on par with unethical credit card companies. Resentment between patients and their providers over financial policies is bad medicine.

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