Using Client Groups for Billing and GST Treatments

Using Client Groups for Billing and GST Treatments

IMPORTANT  WARNING
It is important that your organisation gets detailed tax and gst advise from an appropriately qualified and certified firm. GST is a complex area of accounting and CareVision does not provide advice on, and we do not have the necessary expertise to evaluate your organisations circumstances. The examples provided in this article are to explain the concept and how you can configure CareVision to support GST  either way your organisation requires it to. 

What is a Client Group Billing Treatment?

Client Group is a way for the Coordinators and Organisations to categorise the care recipients based on their care and/or medical needs, living arrangements, status, and other specifications.  Client Group Treatment reflects the conditional charges that are added to the Billing Categories depending on the applicable Client Group set up. 

Why do some services need Client Group Treatments?

For Discounts and Extra Costs

As discussed in the examples above, for all or different groups of clients, care organisations might provide a discount or apply extra costs on the services. It is important to make sure these discounts and extra costs are handled and set up correctly for a finance billing purpose. CareVision allows care organisations to set up these billing treatments according to which client groups they are in while creating billing categories. When the billing categories are applied for services, the group of clients get the discounts or extra charges accordingly and automatically.

Example 1: I f your organisation charges an additional 10% for the care recipients that resides in remote areas, you will be able to apply a Remote Group Treatment on top of the basic rates.

Example 2: If your organisation is providing a percentage discount for the clients within a specific residential village, you will be able to apply a RV discount Group Treatment that deducts the percentage off the rates.

Example 3: If your organisation is charging the Fee For Service clients with a higher rate, you will be able to apply a Fee For Service Group Treatment that adds on top of the basic rate

For GST

In addition, some services may attract GST, and CareVision also supports the implementation of Client Group Treatments to their applicable rates to handle these situations. GST will only be added to the client groups that require to have GST applied to them. Clinical services such as Self Care, Transport, Dietitian and Allied Health will not get GST added; while the non-clinical services provided to the Fee For Service clients will.

Scenarios in which GST Treatment may be required 

Scenario 1- B2B

GST will always apply if the client is in a B2B scenario. For instance, GST will be added to the Nursing Services. If your client is brokered through an organisation, GST will be applied to the client service provided by the organisation. Having a B2B as a group name will enable the client profile to have a tag on them, which classifies them as under this specific category. For instance, a Fee For Service tag will appear on your client's profile if you put a specific client under the Fee For Service group. Coordinators will then be able to tag the client to the services in CareVision and GST will automatically apply to this particular client.  



Scenario 2 - B2C

GST will not apply on clinical services in a B2C scenario, unless it is for the procurement items, however it may apply to non clinical or care services such as Domestic Assistance. For instance, providing domestic cleaning services for Fee For Service clients will usually attract GST. Under the circumstances that a Fee For Service client gets a package, you will need to move the client from Fee For Service and include an end date on the package in CareVision. You will then be able to link a ‘No GST applies’ Client Group to this particular client.

Setting Up Client Group Treatments for Billing and GST Handling

Your organisation can apply discounts, extra costs, and GST on services for clients. This section will take GST Handling as an example. Please note that the process is the same for discounts and extra costs handling as well, but you need to select the Treatment accordingly, depending on whether it's discounts, extra fees, or GST as well as how it should be calculated.

Your organisation will be able to put a 10% GST fee as the rate and an additional row (of 10% GST) will appear as an additional line item. Please only include the rate sets wherever GST is applicable. It is important to add the client group treatment in the correct order, in the sense that GST will only be applied to the whole list when it is the last item on the list. 
 

Key Terms

  1. Active Rate Set - This is the most recent rate set that applies to a particular service, and for which determines the amount that client will be billed for the service. 
  1. Treatment - This indicates the condition that you are able to set, in the form of a percentage of the fee (% fee), a fee value ($ fee), a discounted percentage (% discount), a discounted amount ($ discount), an offset rate $ Per Unit Fee, or an offset rate $ Per Unit Discount.
    1. % Fee / % Discount (“percentage”)
      1. This multiplies the rate. This can be done visibly (by adding an extra line item to represent the fee/discount) or invisibly (by modifying the rate on the existing line item).
    2. $ Fee / $ Discount (“fixed”)
      1. This adds an extra billing line item with a fixed rate as long as the booking already has at least one billing line item for this billing category. This does not support the “invisible” setting. The quantity is always 1.
    3. $ Per Unit Fee / $ Per Unit Discount (“rate_offset”)
      1. This is an amount that’s added to or subtracted from the rate. This can be done visibly (by adding an extra line item that has the same quantity as existing line items) or invisibly (by modifying the rate on existing line items).
  1. Visible / Invisible - Client group treatment can be set to visible/invisible in CareVision this determines how the treatment appears on the invoices i.e. if it is rolled up into the rate or if it is shown as an additional line item on the invoice. 
  2. Ref Codes - These are reference and reporting codes tracked at the granular level of a billing category and which flow into your finance systems, claiming files and more. See the article dedicated to Ref Codes. 

Adding a Client Group Treatment onto a Billing Category

1. Navigate to the SETTINGS module

2. Click on the Billing Category that you would like to create a Client Group Treatment on

3. Click on Active Rate Set to expand the most updated rate set



4. Click on Edit to make changes to the Active Rate Set



5. You will be able to locate Client Group Treatments tab within the  Active Rate Set

6. Click on Client Group Treatments to expand the section 



7. Click on Add Client Group Treatment to include specific group treatments to a specific Billing Category

8. Select the applicable Client Group from the list of all the Client Groups configured in the system



9. Select if the treatment is in the form of a percentage of the fee (% fee), a fee value ($ fee), a discounted percentage (% discount), a discounted amount ($ discount), an offset rate $ Per Unit Fee, or an offset rate $ Per Unit Discount.

10. Add a value in the Rate field 

11. Add reference codes in Ref 1 and Ref 2 (if applicable)
Ref 1 is the Income Code 
Ref 2 is the Cost Code  

12. Tick on the checkbox to select if this Client Group Treatment should be visible or invisible in CareVision
  1. If the client group treatment is set to visible, it will appear as a separate line item on the invoice (10% GST).
  2. If it is set to be invisible, the GST will be added to the rate with just one row (total amount = rate + 10% GST).



13. Locate the  button at the top of the Active Rate Set to save the addition that has been made to the rate set



14. The Save button will change to Publish once the changes have been saved. Click on the  button to publish the rate set



15. The greyed out Client Group Treatment indicates that it has been saved under the Active Rate Set



16. Click on the  button to save the changes under a Billing Category. 

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