Some practices in the past have treated patient accounts that haven't been paid
in full as write offs. The insurance has paid, but the patients haven't met their
responsibility on the bill. There are several ways to improve your cash flow and
improve bad debt recovery for your practice.

WHAT POLICIES ARE IN PLACE TO ENHANCE CASH FLOW?
The collection process can be avoided many times by training your staff to make
sure the patient understands the financial terms for payment. This starts at the
front desk when a patient checks in for the appointment. There are more times
than one would think that the front desk doesn't ask for payment for co-pays. By
saying, " and your co-pay today is $50 for the visit today, how would you like to
handle it by check, Visa, debit card or cash" will resolve having a large number
past due co-pays.

WHAT IF ANY WRITTEN POLICIES ARE IN PLACE WITH YOUR PATIENTS
REGARDING YOUR OFFICE FINANCIAL AGREEMENTS?
Your practice has written policies in effect on when and how to bill patients for
service. Most offices don't have in place when accounts are turned over to
collections. Many offices will hold accounts because the amount owed is very
high and they don't want to pay for collections. The important point to remember
in collections is that it isn't the amount owed; rather it is how long the account is
over due. A survey by ACA International, American Collections Association, to
collection agency members indicated an average loss of approximately 25% from
delinquent accounts over 180 days old.

HOW MUCH AND WHAT INFORMATION SHOULD BE REQUIRED FROM
PATIENTS?
The more information you can obtain for your patients will assist on increasing
your cash flow. It is important to obtain social security numbers, place of
employment, next of kin, and phone numbers to assist in the collection process.

Other questions to ask are:
WHAT AGING PROCESS IS IN PLACE TO IDENTIFY TRUE ACCOUNTS
RECEIVABLES FROM BAD DEBT RECEIVABLES?