Mid Del Therapeutic Center, Inc. - Page 13

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            amount would be delayed until a revised EOB was received.  A                               
            substantial percentage of the claims filed by petitioners with                             
            Medicare and other insurance companies was rejected the first                              
            time and had to be resubmitted.                                                            
                  Some patients who did not have any medical insurance                                 
            coverage or who could not afford their copayments were treated at                          
            the clinics.  Dr. Ishmael expected these patients to pay whatever                          
            they could afford.  The business office usually tried to work out                          
            some sort of payment schedule, even if the payment would only                              
            cover a small portion of the cost of treatment.  No attempt was                            
            made to charge only what a patient could afford or to write down                           
            an account in expectation of what ultimately might be collected.                           
            Eventually, if an account showed no activity for an extended                               
            period of time because a patient had died, left the area, or                               
            other circumstances indicated that the account was wholly                                  
            worthless, petitioners wrote off the entire account.                                       
                  Neither petitioner had signs in its clinics that indicated                           
            payments should be arranged before services were rendered.                                 
            Petitioners never charged interest or finance charges on patient                           
            accounts.  At least in part because of the patients' medical                               
            conditions, petitioners did not use aggressive collection                                  

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Last modified: May 25, 2011