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Smarter Dental Financing and Payment Options
We are fortunate enough to work with many of the most successful practices in the country. We help these practices fine-tune what are usually already good business systems. Some of what we do involves "unteaching" and correcting mistaken concepts that have been emphasized for years by well-intentioned speakers and consultants. These mistaken theories often sound good when you hear them, but they just ain't so!
We'd like to tackle one of the "myths" of collecting. Grasp this concept and you'll understand what it really takes to eliminate billing. And we'll be giving you nuts-and-bolts techniques to bulletproof and protect your own collection system. Let's go!
Myth
Include the right payment options in your financial policy and you'll get paid.
Fact
It's not what payment options you offer, it's how you use them that counts. And even more important than which payment options you do offer are which ones you don't.
Years ago in our own dental practice, we had all the right payment options in place. We offered a courtesy for payment in full, we had an arrangement with a financing company for our patients who wanted a payment plan, and we were even careful to underestimate any potential insurance payment whenever we agreed to work with an insurance co-payment.
And, we were sending out more than 500 bills every month!
The problem was not with these payment options listed above, the problem was with the other creative payment options that evolved over the years. We allowed patients to pay half at the beginning of treatment, and half at the end. We accepted a series of post-dated checks. We collected co-payments without verifying the plan. And, we allowed "special exception" after "special exception!"
"Special exceptions" were all of those long-time patients that we allowed to pay after the insurance paid ... and all of those long-time patients that had always received a bill in the past. It's hard to maintain two different payment policies in one office, one for long-time patients, and one for newer ones. Besides, we were tired of the hassle of sending out all of these bills, tracking the payments, and sending new bills.
You know what day our staff used to dread the most? The day after the bills went out. You know what that day is?
It's the day all your patients call with questions about their bills!
Sending bills is enormously expensive, and most of the costs we don't even think about. Like handling all those phone calls and questions, and worse, the damaged relationships with patients that sometimes result.
You see, it's how you use your payment options that makes the difference. Every staff member knew the payment options available in our office, but it was unclear exactly how to use them. It was also left up to the staff to be creative in making payment arrangements. Staff members were allowed to make special exceptions with patients at any time. Too many special exceptions were being made. No one person in the office was in control to monitor payment arrangements made with patients or the documentation of these arrangements.
What's the secret to getting long-time patients to pay you at the time of treatment? Well, you have to ask them!
Believe it or not, these patients are often wondering why you never do. Explain you've eliminated billing to keep costs down for your patients. Adjust your fees to pay for the latest materials for the best labs or to take your whole team to the best seminar ever, but not to cover billing expenses!
If you work with an insurance co-payment, you have to know what payment to ask for. Verify the coverage, and check your computer database for a recent insurance payment for the same procedure. If you cannot get the information necessary to calculate an accurate estimate, then you should not offer to work with this unknown co-payment. Simply explain to your patient that you would love to work with the co-payment, but the insurance company will not give you the information you need. Help your patient with another payment option.
Do you have an arrangement with an outside financing company but your patients aren't going for it? Don't present this great option to your patients last; present it right after any courtesy you offer for payment in full. Any insurance reimbursement should go directly to the patient. In other words, use your payment options to help get yourself out of the insurance mess, not deeper in it!
Do your patients go for it, but don't get approved? Stop picking and choosing who gets referred to this outside financing company, and who gets to pay you. As long as you accept three payments to your practice for treatment, or you accept a series of post-dated checks, patients will never take advantage of your outside financing. Send all your patients who want a payment plan to the financing company, and watch your approval percentage skyrocket. Believe in your payment options, present them proudly and enthusiastically, and treat all of your patients in the same way. After all, they are all your patients!
10-Step Action Plan to Eliminate Billing
1. Put your payment options in writing.
2. Have everyone in your office sign the list of options to signify their understanding of and agreement with your payment options.
3. Make an agreement to offer the payment options in the proper order to each patient, until an agreement is reached.
4. Make it a goal to treat all of your patients in the same way, offering all of them the same payment options.
5. Appoint a team member (perhaps the Office Manager) to monitor the documentation of payment arrangements made with all of your patients.
6. Make an agreement not to stray from this menu without approval by the lead staff member.
7. Begin transitioning your patients of record accustomed to other options to your new menu.
8. Prepare or purchase professionally-developed scripts, and practice role-playing at staff meetings. Have fun with it!
9. Monitor your success in encouraging patients to take advantage of risk-free payment options.
10. You have permission to make changes in your practice. Your bank makes changes whenever you visit; your mortgage company has probably changed more than once. Every business makes changes. You can keep your patients and get paid, too!
Staff members appreciate having clear guidelines to follow. Every team member must be committed to offering these payment options enthusiastically and with pride. It is clearly understood your staff members can help your patients comfortably afford the dentistry they need or want.
Encourage each other in your efforts and praise each other when you are successful. The whole team will enjoy a much happier atmosphere. You will continue to build and enjoy the relationships with your patients, without allowing situations to occur that could damage the trust you share with them.
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