Why do some doctors seldom, if ever, voice complaints about past-due balances, while others spend significant time on this problem? Much of the answer begins long before a statement is sent. One of the most valuable changes you can make in your accounts receivable process is to define payment expectations with your patients in advance of services performed. You can also enter into a formal agreement that includes a commitment to the down payment, and then writing out the remaining balance terms. Here’s how:
*Establish financial boundaries. Never hesitate to discuss money with your patients. This normally takes place initially when scheduling the first appointment then formally at the consultation appointment. Explain in a clear and concise manner exactly what you will do for the patient in terms they understand. Doctors are responsible for quoting the investment. You need to confirm that the case is sold before you hand them off to your financial coordinator. Your clear communication during your consultation is essential because it establishes important financial boundaries with the client.
*Formalize an agreement. The boundaries discussed at the initial meeting should then be documented in writing. In a financial agreement, your office manager should list the specific services to be performed or work to be delivered and the estimated cost of the services or work.
*This agreement should explicitly state that the patient owes you money for work performed or services rendered. The agreement should also specify the terms of payment, including the payment you expect in advance of services. Many professionals that are securing large blocks of appointment times for their patients, and the doctors should receive a down payment upon scheduling or at least a few days in advance of their appointment. This allows for a few days of recovery time for your staff should the patient not be financially able to move forward at this time.
*Requesting money in advance is an accepted practice within most offices. Using the terminology of the dental industry is important, such as “deposit on future services” or “retainer on services.” This allows the patient to understand you are asking for a commitment to show up for their treatment.
Review verbally. Take the time to review the agreement with your patient before signing. This will enable your office manager to reinforce the financial obligation that the agreement specifies. You can also use this verbal review time to inform your patient about the value of your work. Confirm that they are making the right choice to proceed with care. Your financial coordinator needs to establish rapport, and be viewed as an advocate for the patient. There should be no question at the end of your meeting about what is being delivered and how much it will cost.
*There is no greater show of respect than to be clear, up-front, and honest with your patients about money.
*87% of all malpractice suits involve patients who owe money.
*50% of all marriages end in divorce. 80% of divorced couples site finances as one of the primary causes of divorce. Patients will divorce you over money too.
(c) 2009
Cathy Warschaw, Director
Warschaw Learning Institute
http://www.WarschawLearningInstitute.com
Dental Office Management Online Courses
(888) 822-0917