Some Notes on Collections
Recently, I've been giving some thought to making sure we collect OTC (short for over the counter) payments on a more timely basis. I've made it my personal quest to reduce aging accounts in accounts receivable. I've had some luck with this, so I thought I would share a few handy tips.
First, I made sure our staff knew how to use the internet to find out the nature of every patient's insurance status. For those who aren't covered, I made sure there were signs posted prominently in the waiting room detailing our policy.
When patients who had no insurance arrived, I made sure a staff member politely explained our policy so there would be no misunderstanding. This was also done prior to their visit, when the receptionist called them to remind them of their appointment. The key was persistence combined with good manners.
As many of you know, I like incentives for staff members, so in this instance I offered little perks like free movie tickets and free dinner at a great local restaurant for employees who demonstrated a commitment to our new policy. (One staff member even went to the trouble of redesigning our billing statement so that it was easier to read.)
I also reinforced with physicians the need to direct any financial questions from patients to the staff. The key again being a strong follow-through that showed this was a priority, but not at the expense of the patient's healthcare.
I must say this recent focus has met with some success. I have written previously on collections, and how draconian they can seem, but I am also well aware of the bottom line. My new approach now mimics preventative medicine. We seek to prevent potential financial crises before they arise.
Still, I'm curious what any of you are doing to reduce the dilemma of nonpayment for OTC services. Any thoughts or suggestions would be welcome.
posted by Anne @ 8:44 AM
4 comments
4 Comments:
We charge a $25 fee for non-payment of co-pay's. We have found that once our policy is explained to them in a calm polite manner they typically return later that day with their co-pay to avoid the fee. This fee is also explained in our financial policy that all patients must sign!
I was not a huge supporter of this policy when originally presented, but after seeing the effect it has had on our co-pay collections, I would definitely recommend it to other practices.
I believe charging a $25 fee for non payment of copay at the time of service is illegal.
You have the right to not see the patient and require them to reschedule for a later time or another date, but adding a $25 fee is considered extracting more money than the "allowed/contracted amount" from the patient.
If the Insurance copmanies get wind of this they could consider it as "fraud" and /or breach of contract.
Please tread carefully. Check your Insurance contract.
Now, if a patient is a no show, you can legally charge them a $25 no show fee. The Ins Cos do not like that also, but they cannot do anything about it !!
AJ
Charging a $10, $15, or $25 administrative fee for non-payment of a copay is certainly not illegal and is a smart practice if you want to enforce your policy with patients. (Check with MGMA, ACHE, or your local medical society -- you will find plenty of information and guidance on this issue). Insurance companies expect patients to pay their copayments at the time of their office visits and, in fact, expect you to report non-compliant patients if they do not pay three consecutive copays. The insurance company will in turn the patient in such a case. If you read your contracts, you will probably find that you are not doing enough or what is expected by your payer. As an administrator for an Ob/Gyn practice, I found this to be true more than once. We adopted a policy of charging a $10 administrative fee for non-payment of copays. We also made sure that our policy was well-displayed in all of our waiting rooms. This policy has allowed for an almost 100% collection rate.
Simple. No copay = no visit. Do you go to the gas station and tell them that you can't pay but give me the gasoline anyway? Practices are BUSINESSES.
Most payer contracts require that we collect a copay at the time of the pt's visit. Waiving the copay is seen as fraud from Medicare's perspective. A simple sign that states:
Your insurance policy requires that we collect a copay at the time of your visit. For your convenience, we accept credit card, debit card, cash, and check.
Of course you should have no-show policy, FMLA / disability forms, and other financial protocols in place, and notify the pts consistently before the pt arrives. Teach your staff scripts to follow when you have pts who state they can't pay.
Lastly, COLLECT THE COPAY WHEN THE PT PRESENTS AT THE BEGINNING OF THE VISIT, not after the visit.
Sadly, insurance companies don't give a hoot if you don't collect copays, and they won't lift a finger to help you either. Just think. They are there to make money. How is helping you collect copays helping them improve their bottom line? Nuff said.
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