| In the past, a discussion of how to improve | | | | deductible)c. payment plans (establish your |
| practice billing and collection procedures primarily | | | | parameters in advance. Many consultants |
| focused on the back office and the practice's | | | | recommend you determine a practice policy for |
| insurance billing/collection processes. Over the past | | | | the maximum length of time you would allow for |
| few years, we have seen a dramatic shift toward | | | | a payment plan and the minimum monthly amount |
| increased patient payment responsibility as | | | | you would accept as part of that plan. For |
| evidenced by the following statistics: | | | | example: No longer than 6 months with a $50.00 |
| - In its April 16, 2010 report, the Bureau of Labor | | | | minimum monthly payment required. You may |
| Statistics shows the national unemployment rate | | | | also choose to require a credit card to be kept on |
| to be 9.7 percent. | | | | file for patients with payment plans. If they miss |
| - Patient deductibles in general are increasing. In | | | | a scheduled payment, you are then authorized to |
| 2008, the median PPO patient deductible was | | | | charge the remaining balance due to the card on |
| $1000. | | | | file.) |
| - The number of patients with high-deductible | | | | 3. Make sure your staff understands the patient |
| health plans is continuing to increase. According to | | | | communication/patient payment connection. You |
| the National Center of Health Statistics, 22.7 | | | | must educate your patients on your payment |
| percent of people under the age of 65 with | | | | policies as they relate to uncovered services, |
| private health insurance are enrolled in high | | | | co-pays and deductibles. It is recommended that |
| deductible health plans. | | | | you communicate these policies in the following |
| - Patient Bad Debt is on the rise as well. According | | | | ways/at the following times:a. in a practice |
| to the McKinsey report, 36 percent of patients | | | | brochure (preferably mailed to new patients in |
| have a balance of 60 days or more past due. | | | | advance of their initial visit to your practice.b. |
| With that in mind, a discussion on improving | | | | When the appointment is made, remind patients |
| practice billing/collection procedures must also shift | | | | that payment is expected at the time of service. |
| – from the back office to the front office | | | | (Write out in script format the exact verbiage |
| where most patient interaction and communication | | | | you want your front office staff to use when |
| occur. Here are 4 tips for improving patient | | | | communicating this information to patients over |
| collections: | | | | the phone. For example: Just to confirm – I |
| 1. Analyze your practice's processes and protocols | | | | have you scheduled for an appointment on [Date] |
| by asking yourself the following 40 questions. The | | | | at [Time]. So that you can be prepared, I also |
| MGMA Health Care Consulting Group recently | | | | wanted to make you aware that we will ask for |
| published a list of 40 questions for practice | | | | any deductibles and co-pays to be paid in advance |
| administrators/office managers to ask | | | | at the time of check-in.)c. At check-in. (Again, |
| themselves in relation to patient collections. You | | | | write out in script format what you want your |
| can find these 40 questions here. | | | | front desk personnel to say. For example: Mrs. |
| We at Efficiency in Practice find the MGMA to be | | | | Smith, your co-pay is _______. How would you |
| an extremely valuable resource to our practices. | | | | like to pay for that today?) |
| When you click on the link above, you may also | | | | 4. Accept Debit/Credit Card Transactions. If you |
| find it helpful to subscribe to their practice blog. | | | | want to collect payments from patients at the |
| You can do so on the right-hand side of the same | | | | time of service, you must get your practice set |
| page. | | | | up to accept debit/credit card payment. This is |
| 2. Establish (and document) a clear patient | | | | the primary way that your patients pay for all |
| payment policy. The best policies are | | | | other services provided to them, and they |
| straightforward and simple. Decide exactly how | | | | expect you to be able to process such |
| your practice will handle: | | | | transactions as well. Although you will pay a fee |
| a. co-pays (paid at front desk at time of | | | | to process such transactions, this fee is |
| service)b. deductibles (due at time of service not | | | | considerably less in the long run than the cost of |
| 60 days later after you've filed an insurance claim | | | | repeated attempts to collect patient obligations |
| and determine the patient has not yet met his | | | | after the fact. |