Collecting From Patients During A Tough Economy

Collections are not the most pleasant part of running a practice but without a steady cash flow

, doctors can't afford to provide care. Balancing the office's need for income with positive customer service is a delicate task but one make easier with a good EMR system.

Verify Insurance Coverage

Most patients depend on a third-party payer to cover most or all of medical expenses. Having full information on a patient's medical insurance makes it easier to file claims and results in faster payment to the practice. However patients may not be forthcoming about changes in insurance coverage or may not be aware of modifications to their policies.

An EMR system that includes insurance eligibility checks benefits both the physician and the patient. Office staff can verify the patient's coverage before the exam and determine what copayments need to be collected at the time of service. The EMR system also streamlines referral verification so the patient can be assured all plan requirements have been satisfied and payment for the visit will not be unexpectedly denied.

Stay Current

Patient information should be verified at every visit and entered in the EMR system. This includes address and telephone number, current employer and, for specialists, the name of the patient's primary care physician. This ensures that if it is necessary to contact the patient for billing or other purposes, office staff won't have to hunt through old addresses to find a patient who has moved.

Patients should be expected to remit the copayment at the time of service. After the insurance has paid their portion, any remaining balance should be billed immediately and re-billed after 30 days. Billing must be timely because the longer the office waits, the less likely they will receive payment. If the patient has not paid within 45 days, a phone call is a better solution than another mailed bill.

Be Flexible

True deadbeats are a rarity. Most people have every intention of paying their doctors but anything from forgetfulness to job loss can prevent them from doing so. This is why personal contact is important for old unpaid balances.

Offices should have a plan for patients who can't pay their bills in a timely manner. Although turning the account over to a collection agency is a possibility, it creates a bad relationship with the patient and almost certainly eliminates the possibility of future business. Try to work out a payment plan with the patient that benefits both parties. Many physician offices don't want to handle the debts themselves and contract out the service to third party credit agencies.

Managing ongoing payments requires careful attention to the office books, another task that is aided by a comprehensive EMR system. It allows the office manager to get a clear picture of the practice's financial status, not just as it appears today but how it will progress in the future.

by: Christine Harrell

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