When a practice provides a patient service, it has a right to expect to be paid
on a timely basis. However, anyone who has been in practice more than a few
months has learned that prompt payment is not always the case. Accounts not paid in a timely manner can have a serious
impact on the cash flow of the practice. Here are five ways to improve your collections:
• Have a defined financial and collection policy. One of
the major causes of overdue receivables is
that your practice has not clearly defined
to the patients in writing when payment
is due. Make sure that your payment
terms are clearly stated in writing on the
patient registration form and statement.
• Send out statements promptly and consistently. Many times, the patient has
not paid simply because they have not received an invoice or statement. Once
reminded, most patients are likely to pay in a timely manner.
• Contact overdue accounts more frequently. It’s an excellent idea to
contact late payers every seven to 10 days.
• Use your aging sheet, not your feelings. Get a report
from your practice management system on any account 30- days past-due and
follow up.
• Use a third party sooner. The MDA endorses TSI to help dentists collect
past-due accounts and bad debt. TSI offers an automated, diplomatic payment
reminder service that allow you to keep 100% of what is collected, in addition to
traditional collection services. Call TSI at 877-377-5378 and identify yourself as an
MDA member to obtain your special pricing.