Collection strategies: it's how you say what you say.

This is the first in a series of seven articles intended to simplify and destress your collection and accounts receivables environment. In this article, I will introduce you to proven techniques that have worked for me and I know will work for you. I am honored to write for such a wonderful and informative Journal.

Remember the old Popeye cartoons? Remember Wimpy? He always said, "I'll gladly pay you Tuesday for a hamburger today." Well, in dentistry, we have followed that same philosophy with our patients for a long time. We have given our patients permission to make payments. The number one reason they don't pay at the time of service is ... we haven't asked for the payment! You might be very surprised at our patients' willingness to pay for their dental treatment at the appointment if we only ask for it!

Struggling with collections makes managing accounts receivable frustrating, which creates a stressful environment. When I worked in a dental office, my least favorite task was collections. So, I developed a plan to ask for the payment when the patient was checking out. Hmmm, sounds simple right? WRONG! The scariest thing about collecting a payment at the time of service isn't asking for it ... it's THINKING about asking for it. We tend to be our own worst enemies. So, I developed a simple method for introducing the patient to the idea ... I had the clinical team escort the patient to the front desk saying, "We're going to stop and see--today, and she/he will get a receipt for you." Guess what? It worked! It's simple, it cuts to the chase, and is a nonthreatening, psychological message, which plants the seed that the patient is going to owe money today. I successfully used this concept over the years in dental practices. It is what I implement today when consulting and what I teach in seminars.

Here's another tactic that works quite well. You have a patient you suspect didn't bring their payment (intuition is a valuable tool, don't underestimate its power). Offer to collect their estimated payment before the patient goes into the treatment room. If they did not bring their payment, you have a "heads up" to offer them alternatives for payment such as outside financing, credit card or perhaps rescheduling until it fits in their budget. Remember, you cannot refuse to finish treatment on your patient when you have irreversibly altered their tooth structure no matter what their ability is to pay!

Collection calls tend to be another sticky, awkward situation. Nobody enjoys making the calls and chances are the person making the collection call is also the same person making the patient's next appointment. Make your collection call to the patient friendly, courteous, and to the point. Don't say too much before the patient has a chance to respond and always document what the patient said and promised on a collection report. Never document collection calls in the treatment rendered section of the patient's chart. It can be misinterpreted by the courts that you were only interested in the patient's money, instead of the treatment being done. Here is a sample guideline on the collection call:

* 1st phone call: Hi, Mrs.--, this is--from Dr. XYZ's office and I'm calling about your past due balance. (Never say past due balance on a recorder, simply ask for a return phone call.)

Wait for the patient to respond. They usually tell you all about how their pet ate their paycheck, etc. (just a little collection humor).

When they respond to you acknowledging the debt, say, "What date can we expect your payment/balance to be received in our office?" This commits them to send the payment sooner rather then later. Example: If they respond with, "I think I can have it in your office by Monday", they will most likely mail the payment so that it will be receive by that date, rather than them saying: "I think I can send it by Monday." Which, of course, allows them to send it later rather than sooner. Just a little psychological tool.

* 2nd phone call: Hi, Mr.--, this is--again from Dr. XYZ's office. You and I spoke on--and we have not received payment yet. Again, let patient respond to you before continuing on with the conversation.

* Final notice phone call: Hi, Ms. --, this is--again from Dr. XYZ's office. Our account manager was in our office recently and took your chart from our files. Your account will be referred for collection unless this balance is paid in full by--. Ms. --, we think you're a great patient and we don't want to see this account be referred out for collection. What can we do in our office to help you settle this account?

Let's say that your patient was unaware of your new payment guidelines and they did not come to their appointment prepared to pay. Have systems in place to offer your patient payment options such as cash, check, credit/debit card or outside financing. Also, don't ask your patient if they want to pay today, simply state your options to them. Say, "How do you wish to pay today ... cash, check or credit card?" The more confident you are in your statement, the more able your patient is in following the new payment guidelines! This "up-front" payment option is the most successful tool you can have regarding payment at the time of service. It's one of the most important systems to have in your office. The results are two-fold ... lowering your accounts receivable balances and increasing your collections. Please take this and any other valuable information you read and "tweak" it to meet your practice mission and philosophies.

Lois Banta is CEO, President and Founder of Banta Consulting, Inc., a company that specializes in all aspects of dental practice management. Lois has over 28 years of dental experience and consults and speaks internationally. To contact Lois for a personal consultation or to invite Lois to speak to your organization; Office: 816/847-2055, Address: 33010 NE Pink Hill Rd, Grain Valley, MO 64029, Email: [e-mail] or check out her website: www.bantaconsulting.com.