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CDS Member News and ArticlesProfessional News Articles : FRONT DESK by Mary M. Byers, CAE : Make collections count Make collections countJanuary 3, 2008 Because a practice’s health is determined by accounts received (as opposed to accounts receivable), collection must be an important part of staff responsibility. But before you get to collections, think about setting up systems that increase on-time payment, which makes it easier for the business staff in your office. Consider the following in order to make collections count. Discuss fees in advance. Patients need a clear understanding of what they are expected to pay—and when they are expected to pay it—before treatment begins. Prepare a written treatment plan, complete with the cost, and ask patients to sign it in order to minimize the opportunity for confusion. Be sure your payment policy is included in the document so that patients not only know what they are expected to pay, but when funds are due. Assign a staff member to discuss fees. Who is comfortable talking about money in your practice? That’s the individual who should be meeting privately with patients to insure their understanding prior to the beginning of treatment. Plan ahead. Don’t wait until the day of treatment to let a patient know if a procedure is covered by insurance or not. Find out in advance, and notify the patient prior to the appointment. This will provide him or her the opportunity to determine how the balance due will be covered. If financing is necessary and your office provides it, this will provide time for arrangements to be made. Act quickly. The longer accounts lay dormant, the less likely you are to collect in full on them. Send one statement. Then, follow up with a phone call and get a commitment to pay. Sending statements month after month doesn’t work. Be aware of your accounts receivable. Practice management consultant Anita Jupp advises that accounts receivable be balanced weekly. She notes, “If it doesn’t balance weekly, you have a serious problem. The accounts receivable should not exceed one month’s production.” Further, she says, “You need to know the age of your accounts. Any over 90-120 days should not exceed 5 percent of your receivables.” Stay on top of receivables. Make sure the staff member in charge of collections has adequate and uninterrupted time to make follow-up calls on a regular basis. This individual needs a private area in which to have private conversations with patients. Let this staff member decide if he or she wants to make a few calls daily, or to set aside time weekly to make all necessary collection calls. Set clear payment policies and adhere to them. If payment is expected at the time of service, make sure your staff collects then. If a deposit is required prior to the beginning of comprehensive treatment, don’t begin the work until the deposit is received. Sticking by your policies will help prevent your receivables from getting out of hand. Even with stellar production, if you’re not collecting, your practice won’t thrive. Follow the tips above to keep your receivables in line and make your collection efforts count.
CDS presents Front Desk, a column addressing problems dentists and staff members experience in the office. Front Desk is prepared by Mary M. Byers, CAE, a professional speaker and freelance writer. Ms. Byers may be reached at mbyers@marybyers.com or www.marybyers.com. Send suggestions for topics to be covered to review@cds.org.
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