It can be shocking when you’ve worked hard, but then take a look at what you’re collecting and see how much it differs from your net production. This is because there’s a gap between net production and collections called the Collections Gap, and it’s responsible for money leaking out of your practice. Sealing that gap is crucial, because every dollar not collected comes directly out of your actual profit. You need to maximize your collections, and to do so, use these three tips:
- Have a clearly defined financial policy
First and foremost, both patients AND team members must understand what the acceptable forms of payment are, and when that payment is to be collected. It’s like Kirk says, “Specific is terrific, vague is the plague.” This enables the team members to set up payment agreements with patients confidently, and it means that the patients know their guidelines and limitations. If you then take it a step further by documenting and pre-arranging these payment agreements, collections becomes so much easier.
- Have a clearly defined billing process
Just like with your financial policy, you also need clarity around your billing. Team members must know the process for collecting any remaining balance after treatment, because when that process is perfectly clear, it ensures that they’ll make timely and frequent attempts to collect. We always advise billing your full fee as a way to improve your collections—learn about the reasons why here!
- Develop communication techniques as a team
One of the biggest barriers you’ll face daily (and not just with collections) is communicating with your patients. When you can overcome that hurdle it will make an incredible difference. These are some of my favorite techniques to take your communication skills to the next level:
- Know the difference between sympathy and empathy
- Stay strong, calm, and gentle
- Recognize your personal beliefs or blind spots and learn how not to project them onto others
With these tools at their disposal, the team will overcome any barrier they face.
Remember, your net production is the collectible dollar amount after all your write-offs, and your goal is to collect 100% of it. Every dollar you don’t collect is a dollar that comes out of your profit, so maximizing your collections is absolutely critical. To build off of these 3 keys, check out our free guide!
The journey toward a Better Practice and a Better Life is not an easy one, but you don’t have to do it alone. Watch this free webinar to learn how to optimize your practice for long term success, and contact Gina to see what else ACT can do for you!
Tune in next time and learn how to improve your chairside team chemistry!
