Strategies to reduce patient debt

Most dental practices have patients who have not yet paid for treatment.

Software of Excellence's Thrive Program consultants recommend the following standard procedures as a best strategy for controlling patient debt and ensuring that it doesn't grow out of control.

To reduce patient debt - strategies

• Ask all patients to sign a copy of their treatment plan, which details
  • the cost of each treatment item
  • when payment for each item is due
  • the acceptable payment methods

  Either scan this agreement into the patient's file or complete it via Clinipad for automated storage (see Clinipad Signed Estimates).

• At each appointment stage the clinician charges the treatment completed to create an invoice.
• Before making the next appointment Receptionists ask the patient which payment method they are going to use to settle the balance and process the payment.
• If the patient fails to pay, print an invoice with a suitably worded footer explaining that payment is required within seven days.
• Monitor the List Invoices report weekly and send an SMS or email reminder to settle the account to any patients who still have an open amount.
• Generate the Debtors List Report monthly with 30 day aging and create appropriate account letters or emails (with statements attached) for 30, 60 and 90 day outstanding accounts.
• If contracting a Debt Recovery Agency, ensure that they are a commission-only agency (pay them for results only; do not pay in advance).
• Write off historical debt and mark the patient as a bad debt risk. Generate an annual report to list written off account values. Create two ‘write off’ categories to split treatment debt and debt incurred from failed / cancel charges.
• If debt is a big issue for your practice, consider taking payments in advance, especially with patients who have a history of bad payments.