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9.
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If the patient applies for and is approved for charity, or otherwise qualifies for
charity per the Regional Charity Policy (reference Financial Policy XX-XX), at the
time the charitable transaction is recorded, the self-pay discount transaction will
be reversed to revert the account to full charges. This step is required as we report
charity at the cost of providing services. That cost of providing services is
calculated as the ratio of cost to charges for the applicable California Region
institution as applied to the amount of charity granted.
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10.
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If the patient requests extended payment arrangements (over six payments needed to
pay the account balance), the net amount for which the patient is liable will be
collected by an outside vendor, which will collect the interest due on an installment
loan basis and will comply with all Federal and California Truth In Lending
regulations.
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11.
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Should the account be referred to an outside collection agency for further collection
efforts, and should that agency determine that lawsuit will be required to collect the
amount due, the agency will provide supporting asset/income verification to support
the patient’s ability to pay the debt. Providence-California Regional Business
Office Director, or delegate, will evaluate each suit request for an ability
to pay:
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•
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Are there any assets to file a lien against?
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•
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Is there a principal residence owned by the patient/guarantor (if yes, a lien may be filed
against the equity of that residence, but foreclosure action will not be initiated while
the patient/immediate family member(s) occupies the premises).
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•
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If income is the sole source of payment, legal action will not be approved unless the
income level is above three times the applicable Federal Poverty Guidelines in effect
at the time of the evaluation for lawsuit.
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AUDIT/CONTROL:
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1.
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The Regional Chief Financial Officer or delegate will periodically review the
discount rates currently in effect per ADDENDUM #1 to determine if they still
generate an equitable amount due from private payers, with respect to amounts
paid by government agencies and contracted managed care payers. Should the
Regional CFO determine that adjustments to the rates in ADDENDUM #1 are warranted,
those adjustments shall be approved by the California Regional Management Council,
with an effective date, and ADDENDUM #1 shall be updated.
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2.
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The administration of this policy, including the proper handling of the transactions
for charity and for appropriate legal action approvals, shall be subject to audit by
internal and external auditors.
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