Four Factors to increase Dental Collections

With so many day to day factors affecting collections, big picture issues can get lost in the minutia. Dental practices face the challenge of focusing on the variables affecting collections likely to have the most inevitable impact. This report takes a "divide and conquer" approach to identifying opportunities to growth collections by viewing collections as the stock of four factors and addressing each factor in turn.

Collections =

Collections

Number of patient visits
X Procedures per visit
X Fees per procedure
X Percent of fees collected

All else equal, an growth in any of these four factors leads to higher collections.

Number of patient visits;>

The prescription for increasing patient visits depends on a practice's capacity to cope the existing patient load. reconsider first a institution with a capacity shortage as evidenced by a backlogged schedule. Patients who want an appointment in a few days or weeks have to wait a weeks or months. Tens or hundreds of thousands of dollars in production sit in the agenda rather than the bank account. A institution with a capacity shortage can growth patient visits with more productive scheduling, more operatories, more staff, or further hours. Some basic calculations can quote whether the benefit of adding capacity outweighs the cost.

Now reconsider a institution with excess capacity in the schedule. A institution with excess capacity can growth patient visits with marketing, recall, treatment planning, patient reactivation, buyer service, or a institution merger. Most practices lack data to accomplish an exact cost-benefit prognosis when choosing how to spend in these activities. One approach is to accomplish small-scale experiments. Based on the results of the experiments, do more of what works and less of what fails.

Procedures per visit;>

The procedures a dentist performs depend first on what procedures the dentist recommends. Ethical, legal, and pro credit concerns should steer doctors away from over-recommending. But the same concerns should steer doctors away from under-recommending too. How do the doctor and staff feel about the clinical benefits of sealants, fluoride, periodontal care, up to date x-rays, bite guards, and other procedures? Are the doctor and staff recommending accordingly?

The procedures a dentist performs depend second on the acceptance of the dentist's recommendations. For some patients, fear or finances rationally outweigh the benefits of treatment. Such is life. A dental institution falls short both clinically and financially, however, when patients reject treatment because they do not understand the benefits, risks, and costs. Tools, training, systems, and accepted staffing can help patients understand their options and the implications of their decision to accept treatment.

Fees per procedure;>

Fees can have a dramatic supervene on the bottom line. Depending on cost structure, A 5% fee growth may lead to a 10% or more growth in behalf -- assuming patients don't balk at the higher fees. But at some point, some patients will balk. There's all the time the guy down the street charging less and patients all the time have the selection of forgoing treatment.

Unfortunately, dental practices typically lack data required to select behalf maximizing fees. However, dental practices can do three things to tip off their fee choices. First, a institution can compare its fees to other practices in the area. The higher the fees are relative to competitors, the more consuming competitors are to patients. Dental suppliers and other dental assistance providers accomplish dental fee benchmarking studies for miniature or no cost to the dental practice. Second, staff can watch for patient reactions to fee changes. If patients don't blink at a fee increase, reconsider raising fees even more. Remember that losing a miniature number of patients to high fees is not only ok but foreseen, in a institution that sets fees to maximize profit. Third, a institution can study its costs of performing dental procedures to help set fees for profitability.

Percent of fees collected;>

All else equal, the higher the percent of fees collected, the better. But all else is rarely equal and a institution would optimally assault a balance between the cost and benefit of a high range percentage. While the benefits of a high range ration are obvious, here are some tradeoffs:

· Staff wages: How much in extra wages does the institution pay to squeeze the last 0.1% of collections from patients?
· patient goodwill: Does obsession with the last 0.1% of collections originate adversarial relationships with patients?
· patient financing: Although giving 10% of the fee to a patient financing agenda such as Care credit hurts the range ratio, a financing agenda can growth collections if patients would otherwise forgo treatment or fail to pay.
· guarnatee participation: A institution forgoes collecting a part of fees to partake with guarnatee companies. But participation may bring new patients to the practice, which is a benefit. The cost-benefit tradeoff calls for true analysis.

Four Factors to increase Dental Collections

How to Increase Your Medical Billing Collections With These Six Important Steps

Medical billing collections use is growing, as many doctor's offices, medical facilities and hospitals confront ever-increasing past due debts from slow paying patients and back-logged insurance claims. Along with over 40 million Americans without any health insurance, a slow economy due to recession, and growing unemployment, means shrinking positive cash flow for medical professionals. Given that prognosis, there are a number of things you can implement to increase your internal medical billing collections. By putting these six tactics into place, you can greatly improve your financial bottom line.

1. Be sure you have a clear payment procedure, placed visibly at the front of your office. New patients need to understand clearly what, if any, payment is expected upfront, in regards to co-pays, etc. This should be understood BEFORE rendering service.

Collections

2. It's very important that you get accurate patient information during that first doctor visit. Get the patient's full name, address, date of birth, home, work and cell phone numbers. Get their work information: address, phone number(s), position/title, manager/supervisor, etc. Clearly, the more information you can get here, the better. While some patients may balk at giving their social security number, its still a good idea, especially if the account has to be turned over later to a collection agency.

3. If the patient has health insurance, its important to verify at this point. While a doctor's office can get quite hectic, this crucial step shouldn't be overlooked. Verifying coverage will avoid headaches later on.

4. In the initial patient application, be sure to clearly detail the patients' responsibility for payment. You might also consider including language that should the account have to be turned over to a collection agency for non-payment, the patient will be responsible for collection costs. In some states, the business can recoup their costs for hiring a collections agency, if it is stated in the patient-signed application upfront. (Check with your attorney about this, as state laws vary)

5. Allow patients to make payment arrangements for those going through financial difficulties. Because so many are either uninsured or under-insured, making reasonable payment arrangements via installments gives them more options, and greater peace of mind. It will also help generate cash flow to your practice.

6. Know when its time to relinquish those difficult problem accounts, and turn them over to a debt collection agency. As discussed earlier, many patients are facing greater financial burdens, because of higher unemployment, a slow economy and recession, making it increasingly difficult to pay for the high costs of health care.

Most people intend to do the right thing and honoring their debt obligations. But the reality is that some others are less responsible. By using the before-mentioned procedures, consistently and early on, you can better identify the patients experiencing temporary financial problems from the "problem" delinquent accounts. Payment arrangements, and continued communications can better address those problems. With that, the more problem, non-paying clients have to be identified earlier as well. These are the ones to be outsourced to professional collection agencies who are better equipped to handle these types of accounts.

Failing to do so means wasting valuable time, labor and money dealing with difficult accounts. You can't afford to waste time here, because the longer an account goes unpaid, the lesser the likelihood of getting paid at all. By placing these accounts earlier, you greatly increase your opportunity for getting a great deal, or at least some of your money. As a general rule, after 90 days of non-payment, medical billing collections should be turned over to a collection agency. These simple, but very important tips are very effective in shrinking your medical billing delinquencies. Put into consistent practice, you can greatly improve your medical billing collections.

How to Increase Your Medical Billing Collections With These Six Important Steps

David P. Montana has been a noted industry expert, business consultant and writer in business debt collection services for three decades.
He offers additional tools and solutions on medical billing collections.