Clear Consistent Collections
By Dr. Rhonda R. Savage
Do you feel your collections swing up and down? Wouldn’t it be wonderful if you had consistent cash flow to depend upon?
This isn’t a dream; predictable collections are the mainstay of a successful practice. What are the steps to less financial stress?
Doctors and team members need to sit down together and write out the office’s financial guidelines. In your practice, have you ever noticed patients try to go around the front staff and ask the doctor for a discount or professional courtesy? Or maybe they’ll ask the kind-hearted doctor if they can pay “over time” instead of paying as the treatment is completed?
Doctor, this will undermine the front desk and the financial policies. I asked my audience: “Do patients ever do an end run around the front desk to get to the doctor?” One such kind-hearted doctor raised his hand and said, “There’s no end run involved. I just plow right through my front-office staff, give the discount up front to the patient and I know I’m the problem!”
Discuss the philosophy of your practice with your team.
If you feel compelled to give a courtesy, consider a professional discount limited to $50 rather than extending a courtesy on a percentage basis.
- Does your office offer a cash courtesy? If so, it legally should only be offered to those paying fully in cash. If the patient has dental insurance, you are required, by contract, to offer the same courtesy to the insurance company.
- If you’re changing your office policy, it is advisable to craft a “change of policy” letter regarding your position on cash courtesies or changes in financial policy. For a sample of my “change of policy” letter email me directly at Rhonda@MilesGlobal.net. I would not recommend mailing this letter. Do allow the prior courtesy level and let the patient know, in a friendly, warm and caring manner why you have had a change in courtesy policy. The new courtesy level would apply for all future treatment.
- Doctor, reinforce the efforts of your front-office team.
Criteria for Financial Options
If your collection policies are clear and enforced, 30-40% of total deposit for each day will be from over-the-counter collections.
- Your fee for today is $375. Will that be cash, check or bank card?
- If the treatment is extensive, consider breaking the patient’s portion into three segments. If the appointment is done in two procedures, then either charge the entire amount to begin, or split into two payments. During financial arrangements, present the patient with a written treatment estimate, have the patient sign one copy and keep one copy in the patient’s record.
- What is your position on fees involving lab work? Many offices require the full fee upon the prep date, especially for milled restorations created in the office (Cerec, E4D).
- Insurance co-pay policy: Collect co-pay and deductibles that are due at the time of service. Collect slightly more than the patient’s portion if you are not certain of the fee schedule the insurance utilizes, assuming you accept assignment of benefits. Another option is to have a credit card on file for the after insurance balance. The after-insurance balance is the most difficult portion to collect.
- What is your cash courtesy policy for patients who pay with credit cards? What is your policy for “Professional discount” if the patient has an insurance you are billing?
- Consider a source of outside financing, like CareCredit. I personally worked with CareCredit for 16 years. Outside financing will pay you and cover your expenses up front.
- What is your policy for emergency patients? Consider having emergency registration office visit fees collected before seating.
For real time predetermination and claims processing, work with MDE. The offices that I consult in that have MDE say they love it!
Firm, consistent financial policies are one layer of customer service that our patients deserve and expect. I challenge you to have an open, honest and productive team meeting to discuss your office financial policies, then enforce them.
About the Author:
Dr. Rhonda R. Savage is a speaker, author, consultant; decorated Navy veteran; Dentist and CEO, Miles and Associates. She's a noted speaker on dental practice management, women's health issues and communication. To learn more, please visit Dr. Savage’s website.
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MDE has achieved full accreditation with the Healthcare Network Accreditation Program (HNAP) from the Electronic Healthcare Network Accreditation Commission (EHNAC). By meeting all of the criteria outlined by HNAP, MDE is recognized for its excellence in electronic data interchange services and guarantee of compliance with the latest industry standards and regulations. Learn more about the accreditation process at www.ehnac.org.
Information Center
The Virginia Dental Association's (VDA) Virginia Meeting is scheduled for June 16-18 in Williamsburg, Virginia. Dental professionals from all over will be attending the tradeshow, making it the largest dental conference in Virginia. A number of exhibitions and courses will be offered, including a discussion lead by Teresa Duncan, MS, on effective tips for revenue cycle management. The course will include the following:
- Setting internal credit guidelines
- Tips for successful treatment presentation
- Most common coding errors that can delay your cash flow
- Advantages of electronic insurance interactions
- A practical method for evaluating your collections system
To learn more about the Virginia Meeting and reserve your attendance spot, visit the VDA website.
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