5 easy and effective strategies for minimizing dental debt
Thursday, January 19, 2017
As with any business, getting paid is crucial. An obvious statement, but one that many dental practices don't seem to take to heart, judging by their approach to billing.
Unfortunately, a "good service and hope for the best" mentality simply won't cut it.
In fact, according to a May 2013 statistic from The Accounting Minute, more than 18 percent of accounts receivable in the United States are past due. That represents a huge percentage of any business's revenue, and not something most dental practices can afford to ignore.
To that end, here are five effective strategies for minimizing patients' dental debt and ensuring the maximum profitability of any dental business.
1. Tell patients how billing works before the service
Expecting patients to understand how billing works without explaining it or setting expectations is unrealistic. Instead, it's important to give them all the information they need upfront: how much they'll be paying, when you'd like them to pay, any incentive plans you have, how and when you bill insurance, as well as what types of procedures are covered, partially covered or not covered at all.
2. Make prompt payment appealing with incentive plans
Some patients are always conscientious and prompt in their payments. Others, however, will not pay right away unless they have a good reason to. Consider setting up an incentive plan whereby patients can get 5 percent off if they pay at the front desk right after their service. Or you can offer a Starbucks card or a 10 percent off coupon for their next visit if they pay within a month. Alternatively, interest on unpaid bills can be an effective deterrent.
3. Set up simple payment plans to keep patients on track
Payment plans have been around for a long time for a reason: they work. If patients have to pay less at once, they're more likely to pay off the complete total. Make payment plans approachable by explaining them at the beginning of the relationship, reiterating them upon checkout and sending email or text reminders.
4. Check insurance before setting patients up for an appointment
Most routine dental procedures are covered by insurance: semi-yearly cleanings, X-rays, fillings, root canals and so on. However, cosmetic procedures often aren't covered, or are only partially covered. For patients who have a high deductible, coverage may not matter at all until they meet that deductible. While checking with insurance before setting up an appointment may lose you some hasty patients in the beginning, it will drastically reduce the number of outstanding payments in the long run.
5. Use the power of the personalized written word
When all else fails, personalized missives are usually quite compelling. Write to patients explaining what they owe, what that means for your business and your relationship with them, and what their options are. Usually, they'll respond quickly, with good results all around.
These steps don't guarantee that a practice will have no accounts past due. Unfortunately, that's just a fact of doing business.
However, by setting expectations with patients upfront and offering lots of options for getting their bills paid, most practices can significantly reduce their debt. While this might involve an initial increase in time and cost outlay, in the end it will be more than worth it.
- Impressive new smartphone apps in health and medicine
- Experiment reveals the ugly side of open-source journal industry
- The impact of marijuana use on oral health
- 5 must-track metrics for practice profitability
- 3-D printing and its impact on the medical implant industry
- Technology and medicine: Applying Google Glass in the medical field
- Supreme Court to decide future of teeth whitening industry
- Valentine’s Day woes? There’s an ICD-10 code for that
- New adhesives show promise at preventing braces bracket stains
- Has RICE finally been laid to rest?
- Nuclear standoff with North Korea prompts interest in new weapons
- Why should pharmacies notify physicians about rejections?
- EntrepreNURSE panel aiming to break barriers
See your work in future editions
Your content, Your Expertise,
Your Industry Needs YOUR Expert Voice & We've got the platform you needFind Out How