The way that medical and dental practices have approached people that owe money in the past no longer works nearly as effectively as it once did.
The “one size fits all” approach is dead, and the 30 day bill cycle is dead both in follow-up and collections of slow-pay and delinquents accounts.
The reasons for a patient not paying the bill when due can be varied. Some don’t pay on time because of financial reasons. Others have the funds but are too disorganized to remember where the bill is. Some will try to hold off paying, hoping that you will forget or give up. Still others have no intention to pay you
It can be very expensive to have your staff continue to send statements, make phone calls, and “chase the money”
So what should a business do?
We have determined that there are actually four distinct types of patient payers. Each is motivated in a different way to pay the bill, and it is a mistake to treat them all the same. They are:
THE DUTIFUL PAYER
The dutiful payer feels a keen responsibility to pay their debts in a timely manner. They are motivated to pay the bill by the initial statement you send following patient responsibility. Fortunately, they are (or should be) the largest category in your practice.
THE DISTRACTED PAYER
The distracted payer has the very best intentions to pay your bill, but they seem to be so busy and distracted that they misplace your statement or just forget to pay it. Timely reminders are sufficient to motivate them to get that bill paid.
THE DISRESPECTFUL PAYER
The disrespectful payer tries to see what they can get away with, and hope that you will give up trying to collect the bill if they dodge you long enough. They do not respond to your statements, letters, or phone calls. Rather it will take a contact by a third party collection agency for them to be convinced that the practice is serious about collecting the debt. That alone will motivate them to pay, and they will generally pay the bill after they receive the first contact by that third party.
PROFESSIONAL DEBTOR
The professional debtor never intended to pay the bill when they received service. They are likely in collections with other creditors already. These, and these alone, need to be in the hands of professional collectors, familiar with medical debt, before too much time has elapsed and too much money has already been spent chasing them.
HOW TO GET PAID FASTER
I’d like to have the opportunity to show you how to motivate each type of payer to pay their bill, and to do it inexpensively and easily. Call me or email me today and I’ll be happy to show you.
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