As with any system in a practice, the collection system is only as good as the protocols that are created. The most important part of creating protocols is implementing & utilizing them appropriately and then making sure that the protocols are followed. Accountability is probably the hardest part of this entire process.
There are four areas of the Collection System that need to be monitored thoroughly every month.
Financial Policy
Your dental office needs to have a WRITTEN FINANCIAL POLICY and this policy should be presented to all patients. Taking it a step further and having the patient sign it is a better idea; be sure to maintain a copy of that signed paper. This policy is the ‘rule’ by which all financial arrangements are made. Any questions about how a procedure is to be paid? Refer to the ‘rule’. There are three things to remember when setting the financial policy:
Make all payment options transparent and stick to it.
Clearly state any incentives that are offered so patients may pay early.
Not one patient is seen before everyone knows what the payment arrangements are.
If you allow monthly payments through credit card payments, make sure that you have a merchant that allows you to retain the numbers in an encrypted method.
Your financial policy will be determined by the dynamics of your office. A fee-for-service office will have fewer options to offer the patients than an office that is in network with several insurance companies. (If you are in need of a Financial Policy, please email us at: info@GTSgurus.com.)
Insurance Payments
For some offices, payments received from insurance companies make up the lion’s share of the practice’s collections. It is essential to get a handle on these collections, as well as entering your payments for these correctly.
All practice management software has specific steps in regards to inputting insurance payments efficiently. Make sure that you are trained in the appropriate processes for effective methods. (Refer to our article - Optimizing Insurance Systems for complete instructions.)
Although insurance does cover some of the patient’s balance, they are still going to have to pay their portion, or co-pay. Ideally this should be collected at the time of service, but if it is not you are going to need to send them a statement or you may be setting them up with payment arrangements. There is so much wasted time and resources chasing money that is not collected in an appropriate manner.
Sending Statements
Most offices have scheduled the task of sending statements once a month. This can be a huge undertaking that can consume the entire day. Consider sending statements out on a bi-weekly, weekly or even daily basis.
This allows the task to be less cumbersome, and money will flow into the office on a continual basis. Most practice management software systems will allow you to dictate when you want to send statements.
Additionally, many practice engagement services (such as Weave, Yapi or Lighthouse) offer offices the ability to send out statements through text messages with a link that the patient can pay immediately. We hear that this is often well received by patients and payments come in quicker.
Collections
Every office is going to have those patients that make promises and then don’t come through with their payments. You might need to go through a collection process to get the payment from them. Make sure you check your collection laws before beginning this process. The first step in the collection process is, of course, sending the statements. If you are not getting a response from your statements, the next step is going to make a phone call. Some important points to remember when calling patients to collect money:
You have to talk to the patient.
You cannot leave a message with the person that answers the phone or on the answering machine saying they owe you money.
Collection laws dictate when you can call and how often.
You can call people at work, but if they ask you not to, then you have to stop.
Don't feel guilty about collecting what you're owed. You didn't fail to keep your word. The debtor did and you have every right to collect.
Keep your cool and not let yourself get upset. It's the debtor who should be upset because they haven't held up to their commitment to pay.
Find a good collection agency (such as Collection Agency Ninja) that will follow up on those old balances.
Collecting money is key to keeping the practice in a healthy environment, so make it easy on yourself and collect as soon as possible. If there is money still owed after the claim is paid, send a statement out immediately. Remain mindful of the collection laws and always give your patients the dignity and respect they deserve.
Denise Ciardello, Consultant
Denise is co-founder of Global Team Solutions. A professional speaker and published author, her enthusiasm and knowledge about the dental profession has helped many dental teams. She brings experience, insight, and creativity into her management style, along with a sense of humor. In a profession that can cause anxiety in some dental employees.
Denise’s consulting approach is to partner with doctors and team members to help them realize the dream of creating a thriving, successful practice.
Denise can be reached at: denise@gtsgurus.com
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