10 Sep Accounts Receivable
Accounts Receivable
Your Accounts Receivable tells a story of the health of your practice. Do you know your numbers?
Our advice would be to strive for one-half of a month’s average production for your total Accounts Receivable; however, Knutzen-McVay Group client average is just under one month’s production. Practice goals for 90-day and over balances should be no more than 2-3%.
Here is a list of tips on how to cut down the Accounts Receivable in your office:
1) Offer a Prepaid Discount: Offer a discount if the patient pays when they schedule their appointments, or give a discount if they pay with cash or check (avoiding a merchant fee).
2) Bill frequently: How often do you run your statements? Consider billing on a 10-15 day net basis instead of waiting for the 30 days. This has been a proven feature to get more payments in a timely manner. Practices that utilize this feature have been shown to have lower Accounts Receivable.
3) Offer different forms of financing: Use two or three different companies to help finance patient treatment. If you offer any in-house financing, limit it to 60 days and require a credit card be kept on file.
4) Payment portal on your website: Making paying convenient for your patients is a huge bonus. Consider adding a credit card payment option on your website.
5) Lead by example: Support your financial guidelines in the practice. This helps train your financial team. A well-trained team can help support and guide your patients to understand their options.
6) Use an outside collection company to help: Every office has those accounts that always fall into the 90 day and over category. Train your team to work the A/R report monthly. For those patients that you have reached out to with no response, send to the collection company to handle. The longer the balance dues are on your books…the less you will receive back.
Please reach out to our team to help guide or answer any questions that you may have regarding your Accounts Receivable. We are here to help!