The Web-based Dentist

Linda Drevenstedt

1. The best defense is a good offense.  Always be sure you  have discussed all fees and all payment options with every patient.  Have every patient with a treatment plan over $500 sign off on a payment plan. 
2. Mail statements consistently.  Even if you have insurance pending, send everyone who owes you money a statement EVERY month-no exceptions.
3. Be sure all statements have a Due Date clearly marked.  Include an option to pay with a credit or debit card.
4. Review statements before mailing and add specific notes or stickers such as"30 days past due", "Insurance has paid their portion", and "60 days past due, please remit within 10 days".
5. Send statements immediately after insurance pays (unless the patient has signed an agreement to pay the unpaid balance with a credit card you keep on file.)  If there is a balance due, include a credit card option on the statement and also include an addressed return envelope.
6. Call patients who have not paid within 60 days on the 10th  day after the last statement goes out.  Ask for payment within 10 days.
7. Send patients a copy of the patient's claim when insurance denies payment.  Send a statement with a due date in 10 days.  If the balance is large, send a CareCreditİ application in the envelope. 
8. Send a gentle Collection Letter 10 days after the call if no payment is received.  It is critical to stay on a regular schedule once  you start collections calls or letters.  The sequence needs to be prompt from your office.  This is not a "Oh, my the check book is low, go call some overdue accounts." This is a systematic, consistent system to Get Your Money.  Someone on the team needs to be accountable for following through with the steps.
9. Send a second Collection Letter 10 days after Letter #1 if no payment has been made.  This is a more firm letter with a CareCreditİ application and an option to pay the amount in 3 equal payments on their credit card.
10. Send a third Collection Letter 10 days after Letter #2 if no payment has been made.  This is a final notice or letter.  Send this registered mail. Caveat-you must follow through with any threat, so be prepared to send the patient's account to a collection agency, attorney or small claims court.  Don't bury this in the files.
11. Turn the account over to a third party collector if the final notice gets no response within 10 days.  Use the following methods to move old accounts off of your current accounts receivable. Your software program should allow you to put them in a special billing category so that they are separated and receive no more statements.
    • Collection Attorney. If you have a large account, usually over $1,000, then a collection attorney is a good choice.  They will charge 30-50% of the money collected.  Ask your business attorney or CPA for a referral.
    • Collection Agency. If you have amounts from $50-$999, send the patient's account  to a collection agency.  Collection agencies are most effective if the account is under 6 months old.  Be sure the collection agency you choose will put the debt onto the patient's credit report. 
    • Small Claims Court. In many small towns, this is a good resource.  The patient must have wages that can be  garnished for this to be effective.  Also, you need to be in a county where this is an uncomplicated system.  Try it to see in your county.  In many large metro areas, this is not effective due to the large case load of the county.  There is usually a filing fee.
    • Write off small balances. If the balance is under $50 then Write it off IF, and only IF, you have completed at least five steps of collections calls and letters.
12. Send a patient dismissal letter.  Too many practices will send people to collections and then keep them in recall.  Not a good idea.  Once the patient has been sent to any of the entities in #11, send the patient a formal dismissal letter.  Follow the guidelines for dismissing a patient provided by the American Dental Association or your state dental association.

The key to great collections is consistency and follow-through.  Get together with your front office team and put these guidelines into practice and you will Get Your Money.

More About Drevenstedt Consulting

As you know, there are many advantages to moving your practice to the cloud. Among these is usability. A cloud-based application that is designed from the ground up to be used within a web-browser--like Curve Dental--provides a user experience that is all thumbs up. If you spend any amount of time on the Internet you'll find the user interface familiar and easy to use. It's just like moving from one website to another: You don't need training to learn how to use your bank's online banking system or how to order from Amazon. Cloud-based dental software is just like that; you don't need much training to figure out how to use it. Don't misunderstand me: Managing a dental practice is complicated. You will need training but you'll catch on real fast.

Catching on real fast is great for newbies on your team. Joining an established team can be intimidating and frustrating: New team members to learn to know, new processes to learn, and getting a feel for the practice and working hard to prove yourself to the team. And a new hire can be taxing on the practice as well. But with dental software on the cloud, like Curve Dental, that's one less thing to worry about.

If your newbie is comfortable with browsing the web they'll be just as comfortable with cloud-based dental software. That familiarity will help them get up to speed faster, prove themselves quicker, and make them more productive sooner.

 

The fact that you're reading this eNewsletter on the Web means you're already somewhat qualified to start managing your practice on the cloud. Chat with one of our dental software experts at 888-910-4376 to learn more. Software that's been developed 100% for the cloud is super easy to learn and fun to use. 

 

Also ask about our Google Nexus 7 tablet giveaway for doctors who make the switch by May 23, 2014.

 

Classic Dental Jokes

A man visits his grandmother and brings a friend with him. While he's talking to his grandmother his friend starts eating the peanuts on the coffee table, and finishes them off.

As they leave, the friend says to the grandmother, "Thanks for the peanuts."

She says, "Thank you. Since I lost my dentures I can only such the chocolate off them."

Fun Dental Facts

 

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