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Bankruptcy Terminology

Learn Common Bankruptcy Terms Relating to Patient Bankruptcies

What is Chapter 13?

Personal Bankruptcy: Reorganization of Finances Chapter 13 is the name for one of the several types of bankruptcy protection filed by those who seek financial relief. It’s one of the types of bankruptcy protection that are filed by an individual. Chapter 13 is for someone looking to reorganize their debt. Another common type of bankruptcy protection that’s filed by individuals is Chapter 7, also known as liquidation bankruptcy. This is …Read More

Explaining Chapter 11 Bankruptcy

Bankruptcy for Business Reorganization Chapter 11 is one of the sections of the United States Bankruptcy Code, that allows entities in debt to reorganize under a specific set of laws.  Most Chapter 11 bankruptcy protection cases are filed by businesses, though the process can be filed by an individual as well.  Chapter 11 is similar to Chapter 13, which is the section of Bankruptcy Code used mostly by individuals who …Read More

What is Chapter 7?

Selling Assets to Pay Off Debt The term “Chapter 7” is a reference to the process that allows a debtor, who cannot repay their debt, to file for bankruptcy protection, and have their assets liquidated to assist in the repayment of their debt. This is one of the types of bankruptcy protection found within the United States Bankruptcy Code, or the set of laws that deal with bankruptcy. Chapter 7 …Read More

What is Bankruptcy Protection?

Being Given another Chance Bankruptcy protection is the status given to an individual or business that are unable to pay back their debts in full.  The bankruptcy protection process can be initiated by either the debtor themselves or even a court in some circumstances. Governmental laws regarding bankruptcy protection were created to assist people who are struggling financially to restructure the debt that’s owed to their creditors.  The hope in …Read More

Personal Bankruptcy Terms

Understanding the Legal Process We have compiled an extensive list of commonly used terms in personal bankruptcy.  Some of the terms are very basic and more common, whereas others warrant a more detailed explanation.  Underlined terms offer more details by clicking on them. Assets – Anything that can be owned and has value.  An asset can be exchanged for money. One’s assets can be sold during the process of personal bankruptcy. …Read More

What is a Medicare Severity-Diagnosis Related Group (MS-DRG)?

A More Precise Diagnosis Delivers a Higher Reimbursement A Medicare Severity-Diagnosis Related Group (MS-DRG) is a system of classifying a Medicare patient’s hospital stay into various groups in order to facilitate payment of services. The general DRG system was created collaboratively through Yale University’s Schools of Management and Public Health in order to classify the care that hospitals provide by separating all of the potential human disease diagnoses into 20+ body systems, …Read More

What is a Diagnosis-Related Group (DRG)?

Medicare’s Cost-Saving Plan for Hospitals A Diagnosis-Related Group, abbreviated as DRG, is a system of classifying a patient’s hospital stay into various groups in order to facilitate payment of services. The DRG system separates all of the potential disease diagnoses into 20+ body systems, and then subdivides those systems into 450+ groups.  Fees are assessed through by factoring the body system and groups affected with the amount of hospital resources required to treat …Read More

What Does APC Stand For?

Medicare’s Coding System for Medical Billing APC stands for Medicare’s Ambulatory Payment Classification, the coding system that hospitals use to bill the federal government for services provide to Medicare and Medicaid patients.  Every procedure or medication given to Medicare and Medicaid patients has its own unique code that must be submitted to Medicare by the hospital in order to receive reimbursement for services. The APC system was created by the …Read More

What Does ABN Stand For?

Protection Against Medicare-Denied Bills An Advance Beneficiary Notice of Non-coverage (ABN) is a Medicare liability waiver that medical providers, suppliers, and independent labs are required to give to Medicare patients for services that may not be covered, or considered medically necessary, by Medicare. The ABN lists the items or services that Medicare isn’t expected to pay for and estimates costs for those services.  Once completed and signed, the patient acknowledges …Read More

Calculating Uncompensated Care Costs

$41.1 Billion a Year Each year hospitals across the country face a mountain of bad debt caused by uncompensated care.  It’s not a small figure.   According to the AHA, the total amount of uncompensated care is tens of billions of dollars a year.  In 2011, it was $41.1 billion, an increase of $2 billion from the previous year. Defining Uncompensated Care There are two main areas that comprise uncompensated …Read More