3 tips for getting a better handle on collections

By Roger P. Levin, DDS

Uncollected account receivables can make a sluggish economy even more challenging for practices. That’s why Levin Group advises practices that they should collect 99% or more of all fees charged to patients. Better financial management allows doctors to maintain their income and grow their practices through investments in technology, equipment, and facility upgrades.

Here are three tips your practice can use to keep your collections process in complete control:

Tip 1: Communicate to patients a clear financial policy. Your team should explain that payment is expected at the time of service. Patients with insurance should remit their portion of the fee during the appointment and be informed that any balance not covered by insurance is their responsibility. This amount should be billed and collected within 30 days.

Tip 2: Institute the one-day rule. Patients who owe money to the practice should be contacted when they are one day overdue. Be sure to inform patients that they will receive a reminder phone call when their payment is one day overdue. Patients quickly learn that the practice is on top of its account receivables and that they need to make their payments. Overdue bills will not be ignored.

Tip 3: Expand your payment options. To help increase collections, practices should offer a variety of payment options, including outside financing. Without this option, many patients will not be able to fully pay for recommended treatment. By offering outside financing, a dental office can increase case acceptance and practice production.

An effective collections system can help practices navigate the post-recession economy. By instituting these tips, practices can collect the highest percentage of their fees and enjoy greater financial success.

Dental Economics readers are entitled to receive a 50% courtesy on a Levin Group Total Success Practice Potential Analysis™, an in-office analysis and report of your unique situation conducted by a Senior Practice Analyst. To schedule the next available appointment, call (888) 973-0000 and mention Dental Economics, or e-mail [email protected] with Dental Economics in the subject line. For more information on Levin Group programs and seminars, go to www.levingroupgp.com.