Decreasing Dental Practice Accounts Receivable
There are many dental offices out there that function more like a bank than a dental practice. For example, if you perform root canal therapy on a patient and charge him $1,000. He pays $200 down, but will still leave the office owing $800. He makes his monthly payments and eventually you have received all the money you are owed.
This may seem like an acceptable way to receive payment, but we recommend that you always have a solid payment plan in place before your patients leave the office.
Decreasing the Accounts Receivable at Your Dental Office
Below are a few helpful tips for dentists who are looking to reduce the accounts receivable in their dental practices:
- Change the way you bill – Instead of waiting to send your bills, we suggest sending them out within 10-15 days after the procedure. Additionally, it’s a good idea to put a “due-by” date on your bills as these bills are usually prioritized over “payment due upon receipt” bills.
- Offer discounts for advance payment – Consider offering discounts for patients who are able to pre-pay or pay at their appointment. These discounts may decrease your profitability a bit, but it’s nothing compared to the cost of having uncollected accounts receivable.
- Ask for payment at check-out – It may be awkward to train your staff to ask for full payment at the time of check-out, but you may be surprised at how many people will pay in full with just a reminder.
- Hire an outside collections agency – Lastly, if your accounts receivable is seriously out of control, you may consider hiring an outside company to contact your patients for you. This will save you time and avoid making you look like the ‘bad guy.’
Here at CTC Associates, we can help you with all of your dental transitions and acquisition needs. For more information on how you can help your dental practice run smoothly, please contact our office today. If you’re looking to buy a dental practice or wish to browse dental business’ for sale, dental office for sale; contact CTC Associates.