The First Deadly Sin in Practice Management
In this series, I’m planning to address areas in a medical practice where we have seen doctors lose a lot of money over the years!
Probably the worst thing a doctor can do to devalue him/herself and his/her practice is to give away care. I’m not talking about doing pro-bono work for patients who are truly indigent, nor am I talking about helping out the long term patient who is going through a rough spot. I am talking about not having a good financial policy and enforcing it when dealing with patients.
1. Never allow a patient to be seen if they have not paid their copay first and/or caught up their past due balance.
2. Make sure that a patient gives you the correct and required information needed to submit claims.
3. Make sure that you accept credit cards or ACH (electronic check payments) in order to make it easy for the patient to pay.
4. Use technology to help you collect what is owed to you.
5. Have all patients read and sign a financial policy, then FOLLOW IT.
6. Always send those patients who refuse to pay you or work with you to collection. It has been seen that those doctors who do not send delinquent patients to collection soon have a very busy practice with no one actually paying. All the patients have told their relatives you don’t have to pay. The relatives have told their friends you don’t have to pay. So, you don’t get paid.
One of the biggest problems is that medical providers still want to give discounts to other medical providers. HOWEVER, due to contracts with the different insurance carriers and Medicare, it is against the contract to offer professional courtesy defined as writing off any balance after the insurance had paid their share. If you wish to give professional courtesy, then don’t charge for the visit.
If you do, this becomes the “F” word, fraud. For example, if you charge $100.00 to the insurance and they pay 80%, then the patient is responsible for $20.00 HOWEVER, if you don’t charge the patient then in reality the fee for the service was $80.00 and you owe the insurance money. You can bet they will charge interest and a penalty, to go with that!
Always be sure to not give the patient free credit. You never get any!!!
