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How to Keep Your Accounts Receivable Low
Take a look at your financial accounts receivable department in your office. If you had your druthers, what would that number be? Of course in a perfect world this number would be close to zero, if not zero. Unfortunately, reality hits hard on a daily basis and some days harder than others.
Realistically maintaining low accounts receivable is a difficult task, and yet plays such a vital role in the overall practice success and worth. If monies are not collected on a daily basis, it has an immediate impact on your business.
The administrative staff is the primary player in collecting these monies on a daily basis. There is a great deal to know about collecting overdue accounts. Anyone who holds this position knows from experience just how difficult and stressful it is to get patients to pay what they owe. It is obvious the administrative staff forms the front line in achieving and maintaining a low accounts receivable. However, other members of the staff can also contribute to this goal.
The clinical team should always escort the patient to the financial department where payment is expected for the treatment rendered. This approach provides a direct correlation between services provided and payment due. Obviously, an ounce of prevention avoids break down later.
There are many things the financial or administrative team needs to do and watch out for. The following are just a few tips to follow:
- Update all pertinent information such as telephone number, address, insurance and social security number.
- Run monthly aging reports to determine the activity level of all accounts.
- Avoid allowing accounts to exceed 30 days past due without making a phone call or follow-up.
- Always work with mutual release agreements and promissory notes when making financial arrangements.
- Be aware and educated on all accounts to be sure the office is being paid in a timely fashion.
- Educate all patients on office protocol and procedures for collecting payment. Keep in mind this protocol should ease collections and not impede them.
- When collecting payment always use a positive and direct approach.
- Do not offer your patients too many payment options and never offer to send a bill; instead, collect payment at the time services are rendered.
- When making collection calls have a positive frame of mind. Never give in to a patient who is argumentative whether the discussion is on the telephone or in person.
- Always follow up with patients and be consistent with your letters and telephone calls. Try using the “tickler” system.
- Document a debtor’s payment plan agreement and retain a copy in writing.
- Always send collection letters via certified mail to assure your patients receive them.
- Use gentle reminders for patients who historically pay their account on time.
- Make a habit of documenting all telephone calls, dating them accordingly.
- Remain upbeat when the majority of delinquent patients are dodging your phone calls.
- Know how to handle the irate, insulting and defensive patient when approaching them for payment.
- Learn about your legal rights and patient rights. Educate yourself on the federal laws that apply to collections (e.g., the Fair Debt Collection Practice and Consumer Protection Act).
- Know how many collection letters are too many and when to consider legal action.
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