Rapid A/R Reduction – Continued

I recently covered A/R.

The good news is your making interest and late fees on those that are still out there. The bad news is, for the A/R that is not organized and active (payments being received as agreed upon by pt), it’s costing you money to have it out there.

It’s not just one thing. And if you’ve ever been in MLM, it’s referred to as “all out massive action.”  You should do several things at once to make sure you get your A/R down and under control (again, that which is OUT of control without payment arrangement, insurance billings, etc.).

Number One: Have American Financial Services make regular scheduled (every 2 weeks and they’re making 3 attempts at a whack) phone calls to those who DO NOT have insurance claims.

Number Two: Beat the crap out of the insurance claims. Have AFS call and find out what each one’s particular issue with the claim is and correct the problem and get the claim re-submitted ASAP. This, I’ve noticed, half the time is the practices fault and the other half the time, it’s an insurance issue. SO, the only way to fix it is jump on it and get it going. If you do not have AFS, make calls to the insurance co yourself and solve the problem that way.

Number Three: For those that are really out there, and not responding to your calls, send them to collections. Don’t want to do this, but frankly, if someone owes you money and they’re not paying, not your problem. Pay up. It’s not like they’ll refer or send anyone to you anyway, so I look at it as just part of business. If they want to come in and pay up, great. Some clients I know, are not doing this. They’d rather write it off or let it sit on their books. Not me. I don’t like people who don’t pay. You honored their end by giving them the dentistry they needed. They need to honor your end and pay up. Otherwise, the get whacked (I don’t mean that literally – they’re “dismissed” from the practice.).

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