65% of dental practices say delayed or rejected claims are their main source of lost revenue, according to Curve Dental. Dental offices struggle with unpaid fees because patients often believe their insurance covers more than it does. This leaves a discrepancy of charges that are left unpaid that can seriously damage your business’s cash flow.
When there is inconsistent communication about the costs of the procedures or payment dates, or staff are too busy to pay attention to the lack of payment coming in—cash flow takes a bigger hit.
3 Methods to Secure Payments on Time
Your dental practice should take precautions to ensure it receives timely payments. Here are three methods to implement.
1. Collect payment before procedure to reduce patients from leaving and receiving a bill later. Conducting care on a patient and notifying them on a bill that will arrive later can cause uncertainty about the entire process. For small amounts, verify consent to keep a card on file. This can help you collect payment automatically before a procedure is done.
2. Offer structured payment plans for larger amounts. About 13% of the population struggle to afford necessary procedures up front, according to the American Dental Association Health Policy Institute. Not offering payment plans can deter patients from getting the proper dental care they deserve. Offering flexible payment options on a fixed schedule also ensures consistent payment.
3. Implement a structured communication process among different channels. Strategies to enhance communication include push notifications or SMS payment reminders, and automated messaging systems like email or voicemails. Identify clear intervals for communication as reminders that payment is due soon.
The last thing a dental office wants to do is have unpaid bills to escalate to the point of collections interfering. Typically, aged bills anywhere from 90 to 180 days present good timelines for collections to step in after all internal efforts have been exhausted.
Author: Bruno Ceccarelli