HOW TO SETUP DISCOUNTS

In TPS 2000 you have the ability to set up 2 types of discounts. You may setup a discount for a specific dollar figure, or a percentage of the services or inventory item.

DISCOUNTS: Webster's defines Discount as a reduction from usual price; a deduction from a debt for paying cash, to deduct an amount or percent from a bill / price; to sell at less than the regular price.

In TPS 2000 a DISCOUNT will deduct a portion from both the patient and the carrier amounts. A percentage discount will work like this. On a charge of $30.00, if the patient amount is $6.00 and the Carrier amount is $24.00, a 10% discount will reduce the patient amount to $5.40 and the carrier amount to $21.60.

Dollar amount discounts will reduce both the patient and the carrier in a similar manner.

EXAMPLE: A patient has an 80-20% insurance and patient pay. On a $25.00 office visit the breakdown is $20.00 that the insurance company will pay and $5.00 that the patient will pay. If you give a 10% discount, the breakdown becomes $18.00 for which the insurance company is responsible and $4.50 for which the patient is responsible, for a total of $22.50. Other examples might be coupons, complimentary exams, family, cash payments etc.

NOTE: A discount for an insurance service (one in which the carrier has an amount due) WILL appear on the HCFA form.

Discounts differ from Adust Offs.

ADJUST OFF: Fixed amount adjust off's that are on Medicare, for example, are handled in a different area of Setup. (Policy Detail Master Entry)

Click on the icon on the tool bar to open the System Code Table Registry. From here click on the pull down arrow and select Discount Codes.

To ADD DISCOUNTS to your list, open the System Table Code Registry (Basic System Information). Using the pull down arrow, find and select Discount Codes. Then click on the [Add New Entry] button.

Next, give each discount a 4 letter code to help identify it. Then type in the description you wish to show on billing forms. Then fill in either the percentage (%) of discount or the dollar amount of the discount.