The business side of a medical practice is related to A/R and collections. After patient care, maximizing revenue is the most important thing for a practice. Even if the accounts receivable (AR) effort is progressing smoothly, assessing the process is from time to time is important to maximize cash flow. Here are some tips to maximize collections:
- Eliminate Old Data – In addition to collecting insurance and contact information from new patients, medical practice staff should be urged to renew patient information and update the system at each visit. After the updating the information, they must go through it to identify the data that is redundant such as details of patients who has left the practice long ago, which can be eliminated. Remove small balances like missed co-pay or vaccine reimbursement as losses and save time and money from continual billing for such items.
- Collect from Recurring Patients – On their next visit, collect from patients who have payment balances marking them off from the to-do list. Empower your staff with tools to collect payments on the day of the visit. Experts recommend a simple plan:
- Note down your payment policy in simple terms and post it in the reception area
- Create a system that allows the staff to check the next day’s appointments for existing debts before contacting the patient
- Use reminder calls or conformation emails to inform patients about the pending payments before consultation
- Train your staff to handle payment requirements firmly and politely and ask the billing department to step in if the patient refuses to pay
- Check Reports on Collections – Conducting periodic analysis to check collections is an important AR management tool. If done on weekly basis, such analytics would give you a clear picture of your backlog. This will help identify the areas that need to be addressed.