by Misty Wilkes
Collecting money from a patient is never an easy task. In an ideal world everyone would pay their bill as soon as they receive it. In reality, medical bills are usually last on the list for payment. I have noted a few recommendations to help improve cash flow and not have patient bills be a ‘surprise’.
One of the best ways to begin the financial relationship between you and your patient is to have an open and frank conversation with your patient. Take the time to review their insurance policy and explain their out-of-pocket expenses to them. You should also include any non-covered services or supplies that the patient may be responsible for.
When you are meeting with the patient for the first time and the financial talks are underway, it is best to have a signed document outlining the procedures and the patient’s expected expenses. Have the patient sign a patient responsibility form, a cancellation policy (if you have one) and the written estimate sheet. Your patient responsibility form should also include a penalties and/or interest component if the patient does not pay their bill. You and/or the collections agency can use these signed documents should the case go to court or if garnishments are levied.
Once procedures have started and claims are paid, it is important to send the patient a statement for their cost share. In our company we send two statements and, by the third one, if there has been no payment from the patient, we call them. This is a friendly call. We want to make sure they are aware of the bill and have received the statements we have sent. On that call be sure to confirm their address. You can also ‘save them a stamp’ by taking a payment over the telephone for them.
By the next month if you still have not received a payment or payment arrangements have not been set up, your next call should be a bit more aggressive. Express how important it is that the patient pay for the services received. If the next month comes with no payment, we are now at the five month mark. At this time I advise the patient that they are in ‘pre-collections’. We mail the patient their statement with a letter stating that payment or payment arrangements must be set up within thirty days or their account will be sent to a collection agency.
Documented out-of-pocket expenses coupled with polite but persistent follow up activities is crucial to collecting patient balances. Now, more than ever, it is critical to pay attention to these processes.
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