Uncollectable accounts receivable are debts that have no chance of being paid. When Medicaid planning by a nonlawyer fails for an elder resident, how will the nursing home be paid for services rendered?
Questions that need to be asked when nonlawyer Medicaid planning fails:
- Are unpaid nursing home bills the result of financial exploitation of the resident by a nonlawyer Medicaid planner?
- Did the actions of the nonlawyer lead to Medicaid ineligibility?
If the answer to these questions is Yes, then the nursing home’s uncollectable accounts receivable is greatly affected as a result of working with a Medicaid advisor who is not an attorney. The next question is: Who will pay the bill?
- Unpaid care can be tens to hundreds of thousands of dollars;
- The family cannot possibly pay these exorbitant costs to the nursing home;
- With no malpractice insurance, and if no available assets, the nonlawyer cannot compensate the nursing home;
- The Medicaid program is not paying because of ineligibility.
When a nursing home works with or strongly encourages residents to use a nonlawyer Medicaid planner, a nursing home can be stuck with huge uncollectable accounts receivable.
So, how would you collect a judgment from a nonlawyer with no insurance or assets? The following chapter explains.
Excerpt From: John R. Frazier, Leonard E. Mondschein. “Protecting Nursing Homes and Their Residents from the Unlicensed Practice of Law.” iBooks.