Practice Strategies
The Fine Art Of Point-Of-Service Collection
With patients footing more of their healthcare bills these days, it’s safe to assume that there may be a little foot dragging when it’s time to pay. Now, more than ever, it's vitally important to collect as much as you can at the time of service.
"How Would You Like To Pay Your Bill Today?”
1) Do the math. First, understand that we’re talking real money here. Copays as high as $30 are becoming the norm these days. Even a seemingly small copay is nothing to sneeze at — 15 patients a day at a $10 copay each represents upwards of $39,000 in annual revenue.
2) Train your staff. Staff should understand how collecting these fees impacts the practice’s bottom line and, ultimately, their own paychecks. Train them to be matter-of-fact and assertive when asking for money, but never uncivil or threatening. Stress the need to be compassionate and flexible (a patient in severe pain doesn't need to be bothered about a $10 copay). Provide suggested dialogue and use role-playing exercises to train staffers in this delicate art.
3) Put it in writing. Write and distribute an office policy indicating that patients are expected to pay their portion of medical bills at the time of service. Put it in your brochures, post it on your Web site and add it to recorded phone messages.
4) Teach patients. Send a letter to patients making your case that payment at time of service is the norm in business, that it helps keep practice costs down, and that insurance contracts obligate patients to make copays — and doctors to collect them.
5) Be proactive. Teach your staff to ask patients, "How would you like to pay your bill today? Credit card, check or cash?" This clearly tells the patient that you assume immediate payment. Reiterate your point-of-service policy when patients call to make an appointment.
6) Accept plastic . Get serious about collections by setting up your office to accept credit and debit cards (patients pay approximately 20 percent of out-of-pocket physician expenses that way, up from 10 percent in 1995, according to MasterCard). With a patient's permission, you can even bill a credit card for deductibles, coinsurance and other balances after the time of service, when an insurance company has sorted out who owes what.
7) Tap technology. Increasingly sophisticated practice management software and real-time electronic connectivity to payers are making it easier to know exactly how much a patient owes almost immediately.
8) Decide when to collect .Because it’s so easy for patients to leave without stopping at the checkout window, collecting copays upfront makes sense. But collecting after the visit provides more privacy by allowing patients to discuss money matters at the checkout window instead of the receptionist's desk. And if an argument ensues, it doesn't create a waiting room spectacle.
9) Measure…and reward. Set a measurable goal for on-site collections and track your progress toward it. When performance improves, be liberal with the rewards to staff (e.g., movie tickets or lunch brought in).
10) Keep it in perspective. Finally, be aware that aggressive collection tactics can violate the AMA’s Code of Medical Ethics. For example, withholding a patient’s pre-employment physical results over a $10 copay flies in the face of the code’s mandate that medical reports should not be withheld because of an unpaid bill for medical services. Likewise, the code recommends that doctors waive or forgive copays if they otherwise would prevent a patient with a financial hardship from receiving needed care.
For more information about our services to the healthcare industry, Contact:
Maxine Lawyer, Director of Healthcare Services at 972.448.6905.
The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.
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