Increasing your collections percentage (i.e., getting more clients/patients to pay faster) is one of the three keys to a successful practice. 

Here are three steps you can take to assure that you are collecting everything you can:

1.  Set up the expectation of payment with new patients.  From the very first conversation you have with your clients, make certain they understand that they are responsible for paying all bills at the time of service.  Just having a sign in your office won’t do it.  Your staff must talk to the new patient and explain payment procedures.  Have the person sign a financial responsibility statement.  If there is insurance involved, explain that the patient is responsible for what insurance won’t pay, or that you will help with the insurance submission but they must pay you up front.

2.  Make it easy for people to pay and keep reminding them of their obligation.  Here are some suggestions:
     a.  Set up a script for all patients as they are leaving “How will you be paying today, by check or credit card?”
     b.  Offer credit and debit card payment options.  Many people expect this, and it’s worth the 3% or so to be assured of payment.
     c.   Offer payment plans for slow or no-payers.  Let them pay over time.  If you charge interest, make them sign a statement that they understand the interest charges.

3.  Review your Accounts Receivable Aging report monthly and set up a process to get payment from slow payers.  The cardinal rule of collections is “The longer the bill has been outstanding, the less likely you are to get paid.”  Don’t wait 30 days to send another reminder; send one every 2-3 weeks.  Make the reminders increasingly demanding, up to the ultimatum; then be prepared to follow up and send an account to a collections agency or take it to small claims court.

If you have other suggestions for receivables collection, let me know.