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Dear JILL,
| "Perfect" Payment Arrangements - It Can Be Done! |
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Coming soon from The Practice Source!
"Perfect" Payment Arrangements: Profit-Driven and Patient Pleasing Guidelines to Ensure a Successful Outcome Every Time
What to Say and How to Conduct “Perfect” Payment Negotiations
An excerpt from "Perfect" Payment Arrangements
A negotiation is a discussion with another to reach an agreement, in this case a discussion between a Financial Coordinator and a patient regarding a mutually satisfactory payment arrangement.
When payment negotiations are conducted within the boundaries of your Internal Credit Guidelines (discussed previously in this manual), win/win outcome can be consistently achieved. In other words, a payment arrangement that the patient sees as fair and reasonable is unquestionably good for everyone!
The negotiation approach generally occurs as follows:
- The Financial Coordinator presents an option to the patient.
- The patient responds to the option.
- Based on the patient’s response, the Financial Coordinator either: a) documents the agreement with paperwork; b) continues the negotiation by offering the next option.
Here is an example of the negotiation process when the patient has dental benefits. We will pick up the process at the point where the Financial Coordinator confirms the estimated total of treatment costs.
1. Confirm the estimated total of treatment costs.
Financial Coordinator: “The estimated total for the treatment that Doctor has recommended is $2,000.”
2. Respond to any questions or comments the patient may have.
Patient: “How much will my insurance pay?”
Financial Coordinator: “Based on the information you provided us, we anticipate that they may pay $600 Please notice that I say ‘anticipate’ as we have no way of having a guarantee of payment until the payment actually arrives.”
Patient: “So I’m going to owe $1400?”
Financial Coordinator: “Again, I want to stress that we anticipate that is the amount they will pay, which means we can estimate that you would pay $1400 It is important to remember that if your dental benefits pay less than that, the entire balance is your responsibility.”
Patient: “I’m just trying to figure out how to come up with $1400.”
3. Start the negotiation.
Begin by asking for the total amount due. Acknowledge what the patient has just told you regarding how they are trying to figure out how to pay the $1400 Let them know you have heard their concern.
Important Note: Remember, that if you offer an account adjustment for patients who pay in full at the time of negotiation, that that savings must be reflected in the billing to the insurance company.
Financial Coordinator: “For our patients who are able to pay their portion in full today we thank them with an account adjustment of 5%. In your case, that would be a savings of $70 I know that you just mentioned you are trying to figure out how to come up with $1400, however, I felt I would be remiss if I did not mention this opportunity to save $70.”
Patient: “It would be great to save $70, but I just can’t pay it all today.”
4. Continue the negotiation process. Discuss:
initial investment, then payments.
payment plan: check, credit card, or combination thereof.
use of an outside finance company.
Remember, when dental benefits are involved, continue to discuss and reinforce the fact that you can only anticipate what the dental insurance benefits will be. The entire balance is the responsibility of the patient.
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| Every 90 days remind patients: YOU ARE THEIR DENTIST! |
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By Melinda Spitek, CEO
Hycomb Marketing Inc
Is it possible to grow a practice’s volume and profitability without increasing your existing patient base?
You’d be surprised. Sure, it’s always fulfilling to see new patients coming through the door—it provides a sense of progress and achievement. But so many of the dentists I consult with are unaware of the gold mine they’re sitting on: current patients who already value their services. Increasing production is so often a matter of growing patient loyalty, and then reminding them regularly that you exist!
Where we’re located, in California’s Sonoma County, the growing of grapes and the marketing of wine is a great big deal. The buzz in the wineries is always to get more Americans to appreciate wine. That’s not easy. But did you know that less than 10% of the population purchases more than 88% of all California wine sold? That’s a critical core consumer group. And you find it mirrored again and again in other industries and enterprises. Even dentistry. No— especially dentistry.
Identify Your Very Important Patients—VIPs—Then Actively Cultivate Their Loyalty!
If your patient population is like most, 20% of patients account for upwards of 80% of your revenues. Keeping these VIPs happy and returning can sustain a practice.
LTV = “Long-Term Value,” a numerical yardstick comparing one patient with another. It’s not dollars since some of the loyalty components aren’t measured in dollars. But the patients emerging with higher numbers than average are your VIPs.
0 = Office visits/average per year
Y = Years patient has been in your practice
G = Gross annual profit for this patient
R = Referrals provided by this patient
Add all these together and you’ll get a gross number. You’ll probably be surprised to find that a small percentage of your patient base is clustered around some pretty high and pretty consistent numbers. Then comes a huge drop-off and the majority of the rest are clustered around some considerably lower numbers. That’s your patient long-term value curve.
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| HR Corner: How to Handle Frequent Absences |
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Tim Twigg, President, Bent Ericksen & Associates
Q: One of my staff members constantly calls in with one reason or another for not being able to come to work for the day. She is an excellent assistant and I hate to let her go. So far I have paid her full salary, but can I dock her pay for the time she is not working?
ANSWER: Any “non-exempt” employee, even a salaried non-exempt employee, can be docked for hours not worked. However, since a non-exempt employee is often placed on a salary based on the recognition of exemplary work performance, you may wish to adopt a policy that such employees will not be docked for portions of a work day not worked, as you would be required to do if the employee was “exempt.”
Bear in mind, surveys show that employees who are excessively absent for no apparent reason are not happy employees and their unhappiness usually reflects negatively in other aspect of their job performance.
From your question, it appears that the employee is absent entirely too often. If you can legally dock her pay, by all means do so. If her behavior continues, warn her that you will take disciplinary action, which could include discharge. To avoid legal problems, be sure to keep proper documentation and have it signed by the employee.
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| Meet us in Las Vegas! |
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For those of you who are attending the ADA Meeting in Las Vegas in October, please consider signing up for one of our two courses.
Details:
Date (both courses): Tuesday, September 17th
Course #1: Rejuvenate Your Practice
Time: 10:15-12:45
Fee: $70 Dentist/$45 Staff
Course #2: Don't Leave All Your $$ in Vegas! Take Control of Your Overhead
Time: 2:45-5:15
Fee: $70 Dentist/$45 Staff
Register online today!
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