Five Ways to Improve Collections
Roger P. Levin, DDS | January 22, 2016
Successful practices make collections a priority; and the savviest dentists train their teams with appropriate scripting to collect fees, including insurance co-pays, at the time of service. These practices communicate to patients through written policies, signage, and conversation that, “we provide a valuable service and we expect to be paid for that service today.”
Unfortunately, many dentists and team members still have trouble discussing money with patients. This reticence imperils the practice’s financial health, and at worst, can result in constrained cash flow, increased billing expenses, and uncollectable debt.
To understand how effective your practice’s collection system is, rate your collections against The Practice Performance Matrix, a production predictability tool developed by Levin Group to measure the “9 Areas of Practice Expertise:”
If you answered “no” to any of the questions in the graphic above, you should employ the following five strategies to help your practice collect a higher percentage of fees:
1. Establish strict payment policies, and use scripting to communicate them clearly to patients. All operating procedures relating to the collection of fees should be documented in writing. This should then be translated into scripts that help staff members familiarize patients with their obligations. Scripts not only make it easier to discuss what can be an uncomfortable subject, but can also assure greater consistency in what patients hear, and create an expectation for patients to pay at the end of each appointment.
2. Submit insurance claims daily. Claim forms should be prepared, double-checked, and submitted every day to avoid delays in receiving payments from insurers. The practice should also implement a system that alerts staff when insurance payments are overdue. If reimbursements are late, contact insurers immediately to see if there’s a problem.
3. Collect initial payments or co-pays when patients arrive for their appointment. This sends the clear and unspoken message that if patients don’t pay, they will not be seen that day. By setting the expectation that payment is due at the time of service, the practice will motivate most patients to pay their fees that day.
4. Schedule time to address overdue accounts. Rather than letting collection activities take a back seat, give them the “priority treatment,” and identify specific times when a staff member can focus on collecting overdue fees. The time allotted will depend on the volume of accounts that need attention.
5. Use the “rule of threes” for contacting patients who owe the practice money. As soon as an account is overdue, the staff should contact the patient, by first placing a phone call to the patient once per week for 3 weeks. If this doesn’t work, the staff should send one email per week for 3 weeks. Finally, if payment has still not been made, staff should send a formal letter once per week for 3 weeks. This process produces results in all but the most difficult cases.
Improving collections is vital to sustaining your practice, and maintaining the level of care you provide to your patients. For this reason, it is important that your staff learns how to communicate with patients about their finances, and dedicates time to managing practice funds.
For more information about how to enhance your practice’s production and profitability, click here to download a free Practice Performance Matrix™, along with instructions about how to rate your practice and interpret your score. This tool is used by Levin Group clients to diagnose underperforming areas and make necessary improvements.
Dr. Roger P. Levin is a third-generation general dentist and the Founder and CEO of Levin Group, Inc., the largest dental management and marketing consulting firm in North America. As a leading authority on dental practice management and marketing, Dr. Levin has developed the scientific systems-based consulting method that increases practice production and profitability, while lowering stress. A keynote speaker for major dental conferences, Dr. Levin presents more than 100 seminars per year. He has authored 68 books and more than 4,000 articles.
