How can I get my patients to pay my dental practice on time?

We manage a considerable amount of debt collections for dental practices here.

And for good reason. There is a complex nature to dental and medical billing unlike other types of industries and many consumers can hold back payments for a whole host of reasons.

A mix of factors cause dental practices to place extra effort and resources into improving cash flow. And if your practice understands these challenges and implements solid accounting and collection procedures, you’ll see cash flow dramatically improve.

Let’s take a look at the unique challenges dental practices have in getting patients to pay and what you can do about it.

Reasons for late or unpaid invoices in your dental practice

Some of the causes of payment challenges in a dental practice revolve around the complexity of insurance as well as patient billing in communication.

One of the biggest challenges unique to dental practices is confusion around insurance coverage. Many patients believe that a particular procedure is covered under insurance only to find that may not be the case. Because of this, your practice could be left with chasing payment for that visit.

There may be a miscalculation of out-of-pocket cost because dental benefit plans vary widely. There can also be confusion about the patient’s exact financial responsibility. When patients are unhappy or confused, outstanding balances can result.

Rejected or delayed claims can delay payments. That can be in the form of errors and a claim submission, outdated patient information, missing documentation or other reasons. These are only going to push out a final payment from your patient.

In some cases, a coordination of benefits can delay payment. There can be confusion between primary and secondary insurance.

Some dental care procedures are essential, but they may be an unexpected expense for a patient. And oftentimes, they’re more likely to delay your payment because the cost was not budgeted for.

Billing challenges in your dental practice

There are still dental practices, and you may be running one of them that wait too long to submit claims or send patient statements. That slows down the entire payment process. And just like any other type of business, the longer a bill goes unpaid it becomes more difficult to collect.

Unclear payment policies only create misunderstandings about your patient’s financial responsibility. This becomes another major factor in delayed payments.

Inconsistent follow-ups. A lack of structured communication to get your patients to pay can only delay that final payment further.

Technology issues can also get in the way of an accurate snapshot of cash flow. For example, if your payment systems are not connected to your practice management software, that can make reconciliation harder.

Strategies to minimize late payments in your dental practice

Your dental practice can put in systems to mitigate late payments and improve cash flow. However, to address these issues, you’ll need to implement a multifaceted approach focused on prevention, convenience and a consistent follow-up to patients.

Preventing delinquencies in your dental practice.

You must create and communicate a clear payment policy to all patients.

This policy should include what the insurance company may cover and what the financial obligations are of the patient. If there are deductibles or other services not covered, you should ask that those fees be paid at the time of visit.

Have your patients sign a document acknowledging their financial responsibility, regardless of any insurance coverage.

Offer flexible payment options.

There are a wide range of payment options available for dental practices. Everything from a good old fashioned check to credit card processing. And ask your technology professional about how to implement a payment portal on your website.

For extensive dental care, partner with a dedicated health care financing company that can give your patients options.

Streamline your billing process

Make sure you have an electronic claim submission process with insurance carriers. And train your staff to submit those ASAP.

Using your accounting and billing software, ensure you’re using an integrated payment system that automatically posts payments in real time.

Utilize technology that sends out automated reminders that include polite reminders for outstanding balances.

Train your front office team

Make sure your front desk team are confident and trained in how to discuss financial policies, present treatment costs and how and ask for payment during the time of service.

What’s very important is you train them to be as polite but as diplomatic as possible.

Maximizing your cash flow with a debt collection agency for dental practices

As you know, handling payments in your dental practice can be complex and never-ending.

There will just be occasions when you need extra help and expertise to settle overdue accounts.

That’s why using a collection agency specializing in dental practices is critical.

As we’ve outlined, there are several reasons why your dental practice is not getting paid for various services and the collection agency that you used to represent your practice should understand the complexities of why certain bills are delayed or not paid at all.

When you’re looking for a collection agency ask them directly if they have any experience and expertise in working with dental practices.

When you find the right one, you’ll see dramatic changes in your cash flow and even your relationship with your dental patients.