At any given point, any dental practice would have an accounts receivable balance that could get out of control or affect cash flows to some extent. Dental billing and collection services are vital in boosting collection rates and ensuring positive cash flows. A few measures that the dental team could find useful are as below.
Transparency when dealing with patients is paramount. Clear communication helps in making any relationship successful, especially when it concerns dental billing and insurance coverage.
Patients can get confused about insurance coverage and what or why they owe the dental practice a particular amount. Here is where some communication skills can make a difference.
The team can make patients aware of what the insurance policy covers and the amount that would be borne by them at the practice. As not all patients might understand their respective insurance benefits, the team must make patients aware of all details during the treatment discussion. This explanation is an opportunity to clarify why the recommended treatment is required and the corresponding coverage.
When patients are informed in advance, they know what their costs will be and are better equipped to pay them. This can help prevent any dispute over the expense. The dental team needs to be aware of how to calculate the estimate and present the same. It is also vital for the team to talk directly to patients about their oral health and not just treatment costs. Billing should be initiated while the treatment and its costs are fresh in their minds.
Every patient is comfortable with a specific payment mode. It is also possible that patients could be in different financial situations. Since the practice needs to be more accessible for patients, including some who cannot afford expensive treatment, the practice can gain by offering multiple payment options.
The practice can accept several credit cards, debit cards, or mobile wallet payments. This makes things convenient and simple for patients to pay. Limiting payment options can restrict cash flows for the practice.
The practice can include financing options, especially for costly procedures. Patients who are not comfortable with paying large amounts upfront can benefit from monthly installments or any other plan that has been customized for the patient.
The practice can use technology to integrate multiple payment platforms that make it easy for a patient to pay conveniently, either online or at the clinic.
Many patients may forget or make delayed payments since they also have several bills or commitments to honour. The team must send well-timed reminders that cut through their daily grind and help push patients to make payments on time.
To trigger a faster response, the reminder messages can include a direct link for patients to make instant payments. The team can also send automated reminders for pending or upcoming payments. Since mobile phones are used by most patients and are far more accessible, the team might use messages as a more reliable alternative than just emails.
The team can also schedule reminders at fixed intervals till payment is received. This reminder could be sent in intervals of a week or ten days. The team could also explore more responsive times for receiving payments, such as weekdays or weekends.
The practice can explore creating a document that patients can sign before the treatment commences. This can be tricky, but it is effective if handled well. The document can ask a patient to agree to make complete payment, irrespective of the payment that needs to be made by the insurance company.
This document can be shared during the treatment presentation so that the patient understands the financial responsibility associated with the treatment and can help ensure payment.
The team does not need to get offensive or passive while sharing this document, as the practice expects to get paid for treatment rendered to the patient. If the entire amount is a problem, the team can suggest multiple payment options and plans that the patient can select.
A regular lawyer or financial advisor can be consulted for developing this financial agreement. It should not be overcomplicated or lengthy. The agreement can be drafted with clear and simple terms that outline how the patient is responsible for the full cost of their treatment, in case the insurance company does not pay.
The process of collections can deliver results only when the dental staff has a complete buy-in to the process. Only when the team has been motivated and trained can excellence in collections be achieved.
Requesting payment at the time of checkout can be uncomfortable for the team. Collection calls and follow-ups are also not a primary reason why employees decide to work for a dental practice.
Gratitude and appreciation are powerful tools, and many practices do not completely leverage this fact. The practice needs to genuinely thank their team for meeting targets or crossing collection goals. All employees would love a little acknowledgment and appreciation, as collecting dues from a patient can be a difficult task.
Certificates, thank you emails, or small financial tokens can go a long way in keeping the team motivated and making collections a significant matter. Offering incentives to the team that are calculated on predefined collection rates or acceptable metrics can help to align goals between the team’s efforts and the bottom line of the practice. Incentives can be at an employee level or might also be team dinners at the end of the month.
A practice must have a documented billing policy that can be shared with patients and the dental team. Crafting a collection flow chart is not difficult, and it provides a clear visual representation of the steps that the team needs to take based on the aging of the invoice.
Some examples can be a friendly reminder text. If the bill has not been paid within a week, another text reminder can be sent. After a month past due, calls can be made to the patient. The practice can decide on the intervals between calls and reminders.
A documented process helps to make the dental team accountable. Moreover, it also leads to a more efficient onboarding for recruits and offers them clear processes that need to be adhered to.
Asking for full payment on completion of treatment can be a challenge as well as uncomfortable. It needs to get incorporated into the culture of the practice. The team must think about patients having funds at their disposal. One needs to have a standard policy for asking for payment once the treatment is completed.
The initial times of asking for payment at checkout can be uneasy. Over time, this task gets easier. Patients will adjust to such expectations when they grasp that payment is expected at the time of completion of treatment.
While some patients might not pay upfront, it can be offered as an option. The practice can also offer various payment options and plans available for patients who are not able to pay immediately. The main task is, however, asking. Once ingrained into the culture of the practice, the results can turn out to be surprising.
Efficient dental collections are vital for any dental practice to be financially healthy with positive cash flows. Dental billing and collection services can mean payments for procedures rendered, overdue balances, or even taxes owed by patients. A dental practice needs to take adequate measures to maximize collection rates. Clear communication, adoption of technology, flexible payment options, etc., can boost collection rates.
