From our Friends at ShelleyRenee Practice Consulting:
I am not a fan of statements. They should not be standard practice. Do you track the number of statements that are sent out each month? What does the number of statements sent represent? Each statement represents a non-collection. Most practices I visit have a payment due at time of service policy, yet these offices are drowning in statements. There is a disconnect here. It is a mistaken belief that statements are a normal part of running a dental practice. They are not.
Each non-collection triggers a path no owner wants. Statements lead to accounts receivables which lead to collections, which leads to more labor and supply costs. All this equal lost revenue and increased overhead! There is a better way! As a matter of fact, I work with offices that are almost 100% statement free. Your team can do this also.
Adjust your statement timing:
If asked team members will say they send statements daily or weekly – However, an actual patient only receives a statement once a month due to incorrect statement settings in the software. Statements should be sent every 2 weeks. All patients with outstanding balances should receive two statements a month. Remember, patients owed their portion when they received care. The first statement is already considered late and considered a collection step. Changing the frequency allows the patient to have 3 statements before the 60-day mark. At the 60-day mark (or 3 statements received), the business team should automatically know how to accelerate the collection steps. In some offices this means calls, texts or letters. By 90 days the amounts often become uncollectible and are hard for even collection agencies. Stop this cycle in your office. Prevent the need for statements in the first place. Save team labor for practice growth tasks instead of adding to the overhead.
- Stop the cycle -Unburden your team and get training on a better check in/check out process
- Get the technology to hold credit cards on file with the merchant. (not in your practice or software)
No more wasted labor on figuring co-pays incorrectly. Two of the most common settings to change:
- Fix the software settings to send statements out every 2 weeks
- Also make sure the settings allow statements to be sent even if only one insurance claim is back and multiple are outstanding
Free to all Schwartz and Schwartz clients. Ask us how to get your practice statement-free and redirect the team to productive tasks. Schedule your free REVENUE REVEAL
Visit www.ShelleyRenee.com for more info