Simple Ways Medical Providers Can Act More Like a Medical Billing Agency to Increase Revenue

by on 05/17/11 at 8:47 pm

Simple Ways Medical Providers Can Act More Like a Medical Billing Agency to Increase Revenue

Medical providers face increasingly difficult challenges when it comes to their cash flow. Other than financing their medical accounts receivable, improving their collections is one of the best systemic ways to improve their business in the long run.

Accounts not paid on time have a detrimental impact on a business’ finances. Following are some key areas to focus on to improve your overall collection rate so you can personally operate more like a medical billing agency:

 

Define your credit collection policy in writing:

Patients and staff need to be clear on your collection policies upfront. This part alone can significantly impact your collection rate.  A provider must clearly spell out the policy to patients and staff, present it and review it with the patients at the initial appointment.

 

Use a systemic invoicing and billing system:

Many times a patient does not pay if they haven’t been invoiced properly or regularly (a medical bills agency always bills patients on time). A provider should implement a process with their staff that reminds the staff member to issue invoices and billing statements.

 

Keep your contact information up to date:

One of the best and simplest ways to do that is to write “Address Service Requested” below the address line on the top left corner of your envelopes. In case a patient moves, these three words will require the post office to research and inform you of his/her new address.

 

Be Persistent with overdue accounts:

Once an account is overdue, implement a system that contacts the patient every 10-14 days to remind him/her of your terms of payment.  A phone call from a staff member is usually best and quickest resolution.

 

Don’t make assumptions:

Most practices have an assumption that beyond a certain age of the receivable it is not collectable. Drop this assumption and continue invoicing the patient. If it gets past a certain point, you can refer it to a collection company, but don’t assume that because it is over 120 days, the patient will not pay.

Make sure your staff is trained:

It is important your staff is trained on how to deal with past due customers. You want them to be persistent while at the same time be courteous.  Keep in mind, these could be repeat customers

Use third party collection companies sooner:

Statistics show that after 90 days the collection rate drops by 80%. Getting a letter from a third party can motivate the patient in ways that you cannot. Consider using flat fee collection agencies as opposed to percentage based medical bills agency.

Leon Chernyavsky - President
Alleon Capital Partners
347-669-2271
info@alleoncapital.com

Alleon Capital Partners, LLC (“ACP”), headquartered in White Plains, NY, is a financial services company specializing in medical accounts receivable financing. ACP provides loans and purchases accounts receivable portfolios from medical providers nationwide.

 

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