How to Simplify Your Practice's Payment Policy (and Stop Losing Money)

Everyone knows that the collections piece is even bigger than production when it comes to running a healthy dental practice. But why do so many struggle in this arena? How do you actually stop working harder than you're paid for? Following the advice here will get more patients in your door, happier patients who aren't receiving bills, and a healthier practice because you will be getting paid as well. 

For years, many dentists would run off of Accounts Receivable. Patients would receive treatment, insurance was submitted and bills were sent out afterwards. This made a lot more sense before operations software such as Dentrix, SoftDent, or EagleSoft came about. Nowadays, you can tell a patient their co-pays immediately with relatively good accuracy, especially if you have your most recent fee schedule loaded. Sure, billing is still needed, but not in the fashion it was 30 years ago.

Collect For Appointments Upfront

This is the easiest way to assure you stay on top of collections, but can be a bumpy road if it's a new direction. When a patient is presented with a treatment plan, you can collect the money up front to proceed with service. This creates a sense of ownership with patients since they have already paid for their work, matching your commitment of time. Also your team gets a reliable appointment they can prepare well and deliver on. Most modern dental practices adopt this strategy.

Draw A Line In The Sand

When I take my car into the shop to get a new set of brakes, I have to pay before they hand me the keys. We all know this and have been groomed to comply. Similarly, the expectation that a patient coming in to get a new set of dentures or a crown will have to pay for services rendered that day should be set. If it is a multi-step procedure, you can break payments into several visits. So a crown patient may pay half upfront and the other half at the delivery. It's important to be flexible, but make sure you stay consistent with your rule. This is common for established practices that already know what to expect from their patients.

Make It Affordable (Not Necessarily Cheaper)

As noted above, you need to have standards in place that groom your patient's behavior. But not every patient who comes in your door is the same. The 72 year old retiree may be fine with paying in cash at each visit, while the 29 year old single mother may need help through a lender such as Care Credit or Lending Club. Offering several ways to get your patient to say yes will just help to grow your business and reputation. It also can differentiate you from your competitor down the street.

Where The Results Come From

Most modern dental practices use a blend of the three collection strategies listed above. You don't need to come up with a complicated plan for collecting, just a simple one that is fair and consistent to your patients - then stick to it. Be flexible and transparent when transitioning established patients, while being clear how things work with new ones. 

Putting Things In Action

Define a clear process for your team to overcome any financial obstacles with your patient base. There are 6 ways that most dental practices help patients overcome any financial obstacles (Money Upfront, Recurring Payments, Multi-Step, Alternatives, Reduced Price, and Salvage). Use the acronym "Mr. Mars" when talking about these 6 steps and use them in the order listed above. Below is a guide we use to get dentists started drafting this process:

This article first appeared on the Spartan Leadership blog at https://www.spartanleadershipgroup.com/dental-practice-leadership-blog/how-to-build-a-payment-policy-that-your-practice-can-grow-with