Many medical practices have knowledge of best practices in billing. However, addressing past due accounts can be a challenge for some practices. These top three ways to reduce past due accounts can help a practice’s accounts receivable area.
1. Have a defined financial and debt collection policy.
Make sure that your payment terms are clearly stated in writing on the patient registration form and statement. If payments are late, have a defined procedure for the office staff to follow.
2. Use your aging (financial) sheet, not your feelings.
Many practices (or well-meaning employees) have let an account age beyond the point of reason because he or she felt the patient would eventually pay. Try to focus on EVERY account going over 45 days and stick to a systematic plan of follow up.
3. Use a third party sooner.
More than likely, if patients can pay your office, they will do so or at least communicate their intentions before you place their account with a pre-collect service.
Pre-collect third party services allow you to keep 100% of the money if collected timely. Designed for early intervention, a ‘pre-collect’ service can save practices the internal costs of working accounts beyond the point of reason. Typically, once an account reaches 90 days, you should consider using professional third-party debt collection agency intervention.
Practice managers and their staff often understand that managing the accounts receivable involves asking for payment without coming across as harsh to patients. A diplomatic ‘pre-collect’ service can save practices the internal costs of working accounts beyond the point of reason.
Source: Transworld Systems (TSI) is one of TPA’s Affiliate Partners. TSI offers diplomatic past due accounts and debt collections services for our member practices at exclusive pricing. For questions regarding pre-collect services or debt collections, call Michael Glass at (248) 914-0346.
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