Cash flow down? - Send ALL your Statements Regularly
One of the most frequent complaints we here from our valuable clients is insurance companies don't pay promptly. But, after analyzing the accounts receivable we see a different picture. Approximately 30-50% of the clinics revenue comes from patients. Billers often fail to realize the importance of billing patients regularly and having an office procedure for those that don't pay. This is what we tell our clients:
1) Pick one day of the month (i.e., 1st or 15th) and send remainder statements to ALL the patients that owe money.
2) Develop a plan for patients that do not pay and follow it. Many clinics send one regular statement, a friendly reminder and a collection letter.
3) If you send a collection letter, follow through and turn the account to collection if they have not paid. Also, write the account off your aging using a "Bad Debt" transaction code. This allows you to track the amount and the accounts that went to collection.
Finally, don't allow someone in your office to "hand pick" the statements. Many times, the biller or head phone person will take out the "difficult" statements. Each month each account needs to be dealt with; either by billing the patient, writing off the account you don't intend to collect or turning the account to collections. Don't allow unmanaged accounts to keep adding to your receivables; you aren't getting paid, your accounts receivable is skewed and your staffs workload continues to grow by more and more statements and a larger aging report. If needed, clients will often assign the task of printing and sending statements to an individual that is not involved in the billing or phone functions.
Still confused about why you have so much on the books? We have a Thanksgiving Special. From now until December 1st, we will log into your computer and evaluate your receivables for $100.00. We can tell if your money is held by insurance or patients and make recommendations for your to increase your cash flow by tried and proven methods. To accept this offer, return this form with the words "Thanksgiving Offer" written at the top and we will call you to schedule your evaluation time. Happy Thanksgiving!
1) Pick one day of the month (i.e., 1st or 15th) and send remainder statements to ALL the patients that owe money.
2) Develop a plan for patients that do not pay and follow it. Many clinics send one regular statement, a friendly reminder and a collection letter.
3) If you send a collection letter, follow through and turn the account to collection if they have not paid. Also, write the account off your aging using a "Bad Debt" transaction code. This allows you to track the amount and the accounts that went to collection.
Finally, don't allow someone in your office to "hand pick" the statements. Many times, the biller or head phone person will take out the "difficult" statements. Each month each account needs to be dealt with; either by billing the patient, writing off the account you don't intend to collect or turning the account to collections. Don't allow unmanaged accounts to keep adding to your receivables; you aren't getting paid, your accounts receivable is skewed and your staffs workload continues to grow by more and more statements and a larger aging report. If needed, clients will often assign the task of printing and sending statements to an individual that is not involved in the billing or phone functions.
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