Billed Vs Paid - Collection Adjustment

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Posts: 1
Joined: Tue May 31, 2016 11:17 am

Mon Oct 31, 2016 8:12 am


I'm a new legal assistant at a PI firm and have been calculating client's total billed vs paid numbers for the attorney. I came across a radiology bill that had a total charge of $157 with a patient payment of $20 and an adjustment of $137. The adjustment doesn't have any classification but since the client does not have health-insurance, I thought it was a charity discount. However, the client had brought me a few of their own bills and I saw a bill from a collection agency for this $137 amount.

Am I correct to say this is still counted in the "paid" numbers because they client does still owe it? How can I support this in the demand since the radiology bill clearly looks like $137 was totally written off instead of sent to a collection agency?

Thank you for any advice you can provide!

Richard Dingus
Posts: 66
Joined: Mon Feb 22, 2016 10:48 am

Thu Nov 03, 2016 7:07 am


Thank you for the post and great question!

Unfortunately, medical provider bills do not have much uniformity. With that being said, when a balance is sent to collections it is not uncommon for the bill to show an adjustment. If you find that the adjustment is made where the balance has been sent to collections, then you are absolutely right in counting the adjustment as "paid" per Rule 414.

In order to support your claim, simply include the bill from the collection agency showing the balance or have the collection agency put the balance in writing. Collection agencies are in business to collect unpaid balances; therefore, they are generally more than willing to put the balance in writing with an itemization of the original bill.

Thanks again for the question, and I hope this helped!
Richard Dingus
Attorney and Counselor at Law

• Durham • Raleigh • Greensboro

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