Financial Classification and Account Type

These phrases are no longer used.

"Account type" meant "financial classification" and so in this and future programs we shall use the phrase "financial classification." The phrase "internal account type" really referred to an internal control setting that the programs used to determine which questions to ask - what data the program needs in order to bill correctly. For example: if this code is "2" then you will be asked for the date of injury and other questions necessary for industrial billing. A second example: if the code is "3" then a "normal" billing cycle means do not send a statement to the patient, since you do not bill a patient with a Medicaid classification. This means you do not need to select "hold statements" for a Medicaid patient. This control code is critical and you will not have a properly functioning program unless you code it properly for each patient. Setting this up properly can prevent many support calls. Now and in the future we shall use the phrase "data control code" to refer to the above setting. Hopefully these new terms are more descriptive.

Question: What is the difference between a data control code and a financial class?

Answer: A data control code is one of the parameters of a financial class. Other than that, the financial class and data control codes are not necessarily related. Financial classes are the names you see on your screen and are virtually unlimited. A financial class is assigned by you to help you do reporting on your accounts. The different financial classes may be added, changed, renamed or deleted by you. When you set up financial classes, remember that the computer cannot read your financial class names and the computer does not know what you are doing or why you are doing it.. The data control code that you assign to each of your financial classes tell the software how to handle billing for the financial class. There are only four possible data control codes: 1, 2, 3 and 4. The data control code is used by your computer to create forms with different characteristics. For example, a Medicare insurance claim form is not completed the same way as a private insurance claim form. The computer cannot read the word "Medicare" in your financial class name. It depends upon you to assign data control code four (4) to the financial class so it will be able to create the form correctly. When you receive your original software and first account from Stratford, there will usually be four financial classes set up so that you can begin entering patients immediately. Financial class 01 Private will be assigned data control code 1 and financial class 04 (or 'M' or 'MC') Medicare will be assigned data control code 4. We do that because it seems logical. The computer does not care, however, and there is no requirement for you to use it that way. If you want 01 to be Medicare (which is the way most of our Dialysis clients do it), then you can certainly set it up that way. You can name the financial classes the way you want to name them. Why would you create additional financial classes? If you wish to have separate end-of-the-month production reports for Aetna patients versus Blue Shield patients, you need to put the patient accounts into different financial classes. Another reason is you might want some patients posted as "open-item" and others posted as "balance forward." For most users, four financial classes are all you will ever need in order to produce accurate and informative reports while handling all of your billing needs. A pediatrician usually does not bill Medicare or Industrial (workman's compensation) insurance carriers/intermediaries so they need only 2 financial classes. If the pediatrician does not see Medicaid patients then only the 'Private' financial class is needed.