Keeping your patient aging low and your patients happy is a balancing act. How aggressive your staff should be with collecting patient payments is a tough decision. Most patients don't see medical bills as a priority because there are rarely consequences for not paying. They know an unpaid utility bill will result in services being cut off, but they can still see their provider even if their account is past due. The question then becomes, will you lose patients if you attempt to collect? Perhaps you should utilize an outside agency to help. Here are some pros and cons:
Pro: It can help you collect and keeps your own staff focused on their own work. Sending collection notices and making phone calls will take time away from important tasks such as patient retention and marketing.
Con: It can be expensive. Debt collection agencies typically charge anywhere between 20 and 50% of collections. Do your math and make sure employing an outside agency is worth the cost.
Pro: It can relieve your staff of having to be the "bad guy". Your front desk, billing and medical staff do not want to argue with patients about their debt. They want to focus on patient care and running a smooth operation. Turning collections over to a third party will alleviate this pressure on your staff. Just make sure that whichever agency you choose uses polite and professional tactics and are not threatening.
Con: It can cause hard feelings. Patients may be hurt or embarrassed that they were sent to collections. You are running the risk of losing patients or getting poor reviews regardless of what the patient-provider relationship was like beforehand.
The key is to have a clear, concise payment policy that is given to patients on their first visit and enforced. Post it in the waiting room, as well. Make sure co-payments are collected at the time of the visit and offer payment plans for higher balances. Any discussions about bills should be professional and private. Make sure your staff are empathetic and trained in conflict resolution.
If you would like more tips or guidance, contact us today. Our highly trained billing and revenue cycle management staff can help.
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