Chiropractic Collections Services
If your patients owe you money, and you struggle to get paid for your hard work, our chiropractic collections services may be able to help you. Today, there is an ever-increasing problem of patients not paying their medical bills. The average chiropractic clinic works on a 10 to 15 percent profit margin. If 3 percent of patients are not paying their bills, 30 to 45 percent of the net profit may be gone!
As a chiropractic collection service might tell you, collecting money from existing patients can be just as important, if not more, than getting new patients. A collection agency may be able to help chiropractors recover money that is owed to them. Not only can this help to maintain the business, but it prevents in-house staff from becoming part-time debt collectors.
Primary Reasons for Non-Payment
There are a number of reasons for a patient failing to pay for their chiropractic medical treatment. These include:
- Insurance coverage is becoming more restricted on procedures, leaving patients to bear more of the costs.
- Healthcare costs rise on an annual basis.
- There are cuts in Medicaid or Medicare.
- Many patients have high deductibles and less than $1000 in savings.
- Medical expenses can be overwhelming and unforeseeable.
- Patients often require more than one treatment, leaving them with more medical bills.
- Patients may have other bills from credit cards, student loans, and so forth.
- Your chiropractic billing system might be complicated, leaving patients unable to pay for their bills.
Recovering Debt for Your Chiropractic Clinic
There are three types of chiropractic collections services. This includes Collection Demand Letters, Collection Calls, and Filing a Legal Suit. The letters are often efficient for collecting debt, and are cost-effective. Many patients will choose to pay their debt when they receive a written demand for payment. A collection agency might make more money when they utilize collection calls or a legal suit. Chiropractors will likely save money by assigning Collection Letters first and then transferring the debted accounts to the latter two services if these letters do not result in payment.
How Soon Can A Chiropractor Begin to Collect Debt
In general, chiropractic collection services can begin collecting payment at any time, as long as it is per the office’s financial policy. Most chiropractors will start collecting after 60 days of no payment. We typically recommend sending patients to collection once the determination of insurance coverage has been finalized. This can prevent any confusion since the insurance coverage could vary from what was initially estimated.
Early intervention is crucial to prevent medical debt from piling up and weighing down your clinic. You should have a plan in place for any patient accounts with a payment that has been due for more than 30 days. Patients who have not paid anything in 60 days may be facing collection efforts. If your employees are not trained to perform the task of bill collecting, they could make an error that could result in a legal non-payment or your inability to take any legal action.
A Better Approach to Chiropractic Collection Services
If you have patients that are not paying their bills, hiring chiropractic collection services may be the right choice. Collection agencies are effective, affordable, and understand the legal way of collecting money past due from accounts. Their methods are tactful and may be diplomatic or intensive – depending on the circumstances. They can also accept payment in several ways, and if needed, assist with revenue cycle management.
To learn more about our chiropractic collection services, please call Genesis Chiropractic Software today.
Mistakes Providers Make During the Debt Collections Process
Our chiropractic collections services allow providers to focus on patient care and administrative staff to prioritize other tasks rather than being weighed down by the cumbersome process of collecting payment from patients. While chiropractors typically join the field to help their patients heal, those services shouldn’t come free of cost, and offices should take steps to reduce the number of delinquencies they are managing. Your business is dependent upon revenue from patients to meet bottom lines and to remain successful. Unfortunately, it’s not uncommon for providers to make mistakes during the debt collections process, which is a primary reason to choose Genesis Chiropractic Software for the billing services we provide. Common mistakes made by chiropractic offices during the debt collections process include:
Not Getting the Timing Right
In some cases, offices are far too patient with those they are attempting to collect payment form. Waiting too long can have a significant financial impact and could result in cash flow issues over time. However, if you begin collections too soon, your reputation could be impacted. When it comes to collections, getting the timing right is critical.
Harassing or Being Overly Aggressive
When collecting a debt, it’s critical to follow The Fair Debt Collection Practices Act (FDCPA). This prevents collections from harassing or abusing consumers by making threats, making constant phone calls, not identifying themselves, and more. Failure to follow this could result in legal interventions and could be costly for businesses.
Failing to Attempt to Collect Debts
One common mistake that calls for the assistance of chiropractic collections services is failing to collect debts. Practices often are so busy with other tasks that they rarely have time to tackle the cumbersome job of collections. It’s important to mention that it may be uncomfortable to call a past client who once had a relationship with the office. Working with our company can assist in taking the pressure off and settle some of those delinquencies.
Reducing the Number of Delinquencies
It should come as no surprise that chiropractic offices across the country have delinquent patient accounts. Most patients don’t seek care from a chiropractor with the intention of never paying for the services rendered. Typically, it’s because the cost is more than they had planned on. There are various reasons for this, such as high deductibles, insurance coverage issues, failing to have a referral, and more. While all offices will have some delinquent accounts, there are some steps offices can take to reduce the number of delinquencies, including:
- The best opportunity to reduce problems is for administrative staff to submit claims as soon as possible, at the first office visit. This allows issues to be addressed early on and prevents patients from having large balances that they may not be able to pay.
- Develop a form for patients to sign and review outlining financial responsibilities, in addition to having administrative staff review these expectations with patients in person.
- Chiropractic offices should obtain the insurance card and make a copy of it after the first office visit, keeping it on file.
- At the first visit, administrative staff should contact the insurance company to obtain information regarding the deductible, copay, whether a referral is needed, etc.
At Genesis Chiropractic Software, we know that you will have your hands full providing care to your patients. We want to provide you with the software you need to operate your business with ease. Our services not only manage the collections process but offer a vast array of services that can benefit your business. Let our team help you improve patient retention, medical documentation, patient communication, and debt collections. For chiropractic collections services that stand apart from the rest, contact our team today.