Escrow: a healthy alternative.

• Author: Fulkerson, Carol
• Position: Escrow accounts for health care services

Looking at the wide array of possibilities for escrow accounts can be like reading the menu at a deli: There's something for everyone.

By definition, an escrow is an account set up between two parties -- buyer and seller -- to be administered by a third party, usually an agent from a bank's escrow department. Whether you're purchasing land, an airplane, a car or a piece of heavy equipment, an escrow account is an excellent way to handle the money transaction. It's also one of the best methods of transferring liquor or fishing licenses or taxi permits or of making child support or alimony payments.

Escrow accounts for these types of transactions are fairly common. But good escrow agents, being the creative crew that they are, look beyond the common uses to find fresh ideas -- new ways of making customers' lives easier. One program developed for operation through escrow accounts is proving helpful to many health professionals around the state. It's an escrow account that gives patients -- and health care providers -- an option in making payments.

Everywhere in the health industry there's a financial crisis these days, and here in Alaska the situation's particularly severe. Many who have insurance are finding their deductible costs steadily rising. The number of things insurance companies cover has been cut back, and those expenses still covered have been scaled down. All in all, it's become harder than before for some patients to meet their medical or dental bills. These patients need an alternative.

At the same time, collecting reimbursement fees can be as difficult for health professionals as paying bills can be for patients. Offices routinely are running with the barest minimum staff possible to cut expenses and meet the necessary budget constraints. Each member of the staff is stretched to handle tasks that were someone else's, and they're overwhelmed by the work that existing procedures require.

Billing systems generally aren't geared for installment payments, and keeping track of partial payments erodes staff time. It isn't uncommon today to find an office that hasn't done anything about its collections for 90 days or more. These offices need a new system to help them cope.

Enter escrow. Escrow has many options that make...