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 I.     PURPOSE

To set policy to write off patient accounts at the Community Mental Health Center at Newark, Community Mental Health Center at Piscataway, Robert Wood Johnson Faculty Practice, and School of Osteopathic Medicine Faculty Practice, which in accordance with sound business practices, are considered uncollectable in the regular course of business. This policy reflects compliance with the provisions of the State of New Jersey Circular Letter 85-16.

Reference

Circular Letter 85-16, October 1, 1984
Documentation Form AR-900A
Collection Statements

Under the direction of the Senior Vice President for Administration and Finance, the Vice President for Financial Affairs and Treasurer is to ensure compliance with this policy. The Controller's Office is to implement this policy.

A.    State of New Jersey, Department of the Treasury, Circular Letter 85-16

        1.     UMDNJ accounts receivable are classified under Circular Letter 85-16 as items
                recorded on "Agency Records Only." Therefore, the process for write-off is
                through the submission of Form AR-900A to N.J. Department of the Treasury.

        2.     When adjustment of a patient's account is made through the use of an authorized
                sliding fee scale, that part not collectible for the patient/responsible party will be
                recorded and treated as an allowance by the Patient Accounting Office involved.
                In the event that the patient fails to pay his/her share of the bill resulting from
                application of the sliding fee scale, that part of the bill (not including the
                allowance) may be written off in accordance with these procedures.

        3.     It is considered economically unjustifiable to institute the collection process for
                delinquent patient accounts which are $100 or less. Such accounts should be
                written off as uncollectable accounts receivable provided that the account has
                been delinquent at least one year and there has been no contact with or payment
                from the patient.

        4.     This policy and procedure does not preclude, supersede or modify the rules and
                regulations involving Hill-Burton-aided facilities with regard to uncompensated
                services to persons unable to pay.
 

________________________________________
Senior Vice President for Administration and Finance

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