Ask The Consultant

Answers to Your Questions

By Harry Colson
Vice President of Consulting, Levin Group

Q: “I have heard Dr. Levin speak and he says the collections target should be at 99%. How do I get there?”
A: There are numerous steps you can take to reach the target of 99% collections:

1. Collect the patients’ portion at the time of service when you present them their walkout statement. Don’t wait 30 days to mail out a bill.
2. Submit insurance claims electronically on a daily basis. If reimbursement is not received within 30 days, follow up with the insurance company to find out why.
3. Double-check claims before submitting so the insurance company has no reason to delay making payment.
4. If some bills need to be mailed out, make sure each one clearly indicates the due date and the procedure being billed. There should be no confusion on the parents’ part over what the bill is for or when it’s due.
5. Don’t delay following up on past due amounts. Call patients when they’re one day overdue and ask for a commitment to pay.
6. If parents can’t be contacted by phone and don’t respond to mailed notices, a final collections letter should be sent via certified mail informing them their account will be turned over to a collections agency. This final option should be a rare exception if steps 1 through 5 above have been followed.

Remember, for every 1% of fees that go uncollected, you lose $1,000 per $100,000 in production. For example, if you’re producing $1 million but only collecting 95% of all fees instead of 99% or above, you’re losing $50,000 every year. That’s money you could use to invest in the practice, pay off debts or save for retirement. Get paid for what you do—you deserve it!