Dental Accounts Receivable Protocol for Your Practice
Dental Accounts Receivable Protocol is absolutely necessary for every dental practice! Well, maybe I should say that protocol is necessary for dental office success.
Without it, the dental office may survive. However, you might see inconsistent monthly collection numbers. Or, even worse, the accounts receivable could be increasing each month.
Jump Off the Roller Coaster
Is your dental office riding the collection roller coaster? Are you seeing ups and downs each month? Do you wonder each month what is coming in?
It’s fixable. We just need to get a solid system in place for you! Business systems run businesses. Even the business of dentistry. A system problem is a fixable problem.
When Should You Worry?
How do you know when you should worry? Now, that’s your first clue! If you are wondering if you should worry!
Your gut feeling that there could be a problem, means there is a problem. Don’t ignore those feelings and signs. But the best way to check is to look carefully at your numbers. Numbers never lie!
A Simple Guide:
Your total accounts receivable should be equal to or less than your average monthly production.
Take Some Action!
Let’s take some action!
If you haven’t yet seen my Weekly Management Systems, now is the time! I’m excited to be able to share this with you.
I’ve got this down to a science! Weekly Management takes all the dental front office systems and brings them together in a very efficient and productive way!
Accounts Receivable Over 60 & Over 90
These Should Be Your Smallest Outstanding Balances
Insurance Ageing Over 60/90 Days: In a financially healthy dental practice, you will occasionally see an insurance claim resting in the 60 and 90- day report.
It would probably be the insurance company requested additional information for review. Working claims over 30 days due will prevent the roll over into the 60/90-day categories. And that’s what Weekly Management Systems helps you do.
Patient Balances Over 60/90 Days: Ideally, these accounts are those with a financial agreement in place. I would avoid using the phrase “payment plan” whenever possible. Unless talking about pre-payment plans.
When something has happened to create an unpaid balance in your dental office, go for payment in full. Or offer to keep a credit card on file for regular monthly payments, if necessary.
Payment plans or “pre-payment plans” are great tools to consider. Pre-payment options allow payment over time prior to treatment. For patients who require payment plans, encourage regular monthly payments in advance. As a dental savings account.
A New Patient Presentation
Brand it. Name it. Make it something special you offer as part of your new patient experience and discussions. Consider a special discount for treatment for patients who save for treatment and pay in full with this savings. A courtesy for payment in full and even prior to treatment.
Avoid chasing money later! No one likes that. Take my experience and training and put it to use in your practice today. Adjust and customize and create a consistent collection rate of 100%!