When looking to increase Medical Practice Collections, many doctors find this a daunting task. A medical practice is a business and any business needs cashflow to run.
Due to the growth of insurance providers, and the Affordable Care Act (ACA) creating high-deductible health plans, the world of medical payment has changed. Patients are now often are responsible for a larger portion of their medical bills than they expect. This creates a challenge for healthcare providers who are trying to get paid for the medical services they deliver.
Here are 5 ways to increase Medical practice collections, while keeping patients onside:
1) Train staff to handle finances
In any business, it is important to ensure everyone on the team follows through on what’s expected of them. To make this happen you must take the time to train all employees. Medical practice collections are very often managed by those in front-office roles, and hence they need training on the details.
They need to know how to handle various medical practice collections scenarios. It’s important for your staff to practice working through different scenarios so they’re confident tackling them in real life when the time comes. Think of the time you spend training as an investment in your business profitability.
2) Create a payment policy
When it comes to providing medical care to your patients, doctors always have a process. The same approach should happen for medical practice collections.
Be clear on the terms of payment (on the day, 15 days, 30 days). Have a clear system of follow up. Let patients know what happens if their insurance does not cover the full amount. Let patients know you will be calling to seek payment after 30 days, etc.
You can choose whatever medical practice collections policy you like, but make sure it is standard practice wise, and it is written and available for both patients and team members to read.
3) Collect payment directly
According to an article by WEBPT, only 21% of patient balances that aren’t collected at the point-of-service are ever collected. For this reason, it is best to make a big effort to collect money on the day from your patients where possible.
Very often this is as simple as explaining to patients that you collect payments up front. Once payment is collected, they are reimbursed by their insurance company. Some patients may resist this, but most will comply within 1 -2 visits if this is the policy.
The important thing is to position the upfront collection as a benefit to the patient. You can explain that it makes delivering treatment faster. It also reduces the need for anyone to be calling and chasing for payment at a later date.
4) Be confident asking for payment
This is an important point to remember. Many healthcare providers feel almost embarrassed asking for payment. It seems as if the system is setup so that medical treatment is somehow ‘covered’ by insurance. But the reality is that as a business, you must collect.
When it comes time to request payment from patients, resist the urge to apologize. Be clear about the costs if your services. Let patients know you appreciate their being a part of your medical practice. No other business feels awkward or embarrassed asking for money, it is a natural part of the process. Feel confident asking for payment, and patients will gladly pay.
5) Avoid using collections agencies
Many practices use collections agencies as a method of collecting payment. While this can be useful as a last resort for recovering past-due balances, it can also be damaging to relationships.
The fact is that the return on investment for collections agencies is very high. According to a Medical Economics article, the cost of employing a collection agency is significant, generally ranging from 20% to as high as 50% of the amount collected.
Whenever you can, use your polite and persistent follow up to try to complete overdue payments. Only employ credit agencies when the payment has gone well past the due date. You payment policy should be the guide for when and how to use collection agencies.
The changing the landscape of healthcare in America requires a refocussed effort among all doctors. Medical practice collections are an important component of running the business. That means doctors and medical teams must shift their attitudes about medical practice collections.
