Most likely your practice has experienced this situation or similar: A patient had a $2,400 bill that he wanted to pay because the treatment had solved a long-standing medical problem but couldn’t pay in full at that time. He contacted the practice and proposed payment over a year at $200 per month (plus any interest as allowed by law). The practice Collection Manager responded that they only set up six month plans, needed 20% down immediately and that if one payment was missed, it would be promptly turned over to a collections agency or worse. The patient agreed to this arrangement, however, soon after a payment was missed, and the balance was written off to bad debt. The patient ‘s response became increasingly defensive and non-responsive as you attempted to secure payment prior to collection agency turnover.

Now what? Before you set up a rock solid patient payment plan, find out where your practice is now by pondering these five points:

• What is your practice doing, currently, to treat patient collections?
• How are financial responsibilities being communicated to patients?
• Describe the practice’s communication methods with patients before, during and after their visit.
• Have you made positive patient engagement a mainstay of your practice’s culture?
• Are several communication channels (i.e. social media, web, email, phone, etc.) available for patients?

Once you benchmark your practice, consider how you can further empower your patients to take charge of what is for many, unchartered turf, their own healthcare, by implementing the following patient payment policies:

• Insurance plans: Restate what insurances you accept and are in network, what insurance information (updated policies and ID cards) is expected and at what point co-pays and co-insurances are due. Also, let patients know when they will have to pay the patient portion of the bill.
• Payment plan options: Have you adjusted or updated your payment policies to reflect these changing times? Payment plans need to include convenient terms which will probably vary based on patient and circumstance. Remaining flexible can turn a non-paying situation into one that results in positive results for all parties. A credit card on file (CCOF) policy is another popular option.
• CCOF: Securing patient payment via credit or debit card not only eliminates aggravation for the practice but also for the patient. It’s one less bill to worry about and easy to budget for with automatic pre-determined payments. You can even establish a CCOF as a preferred payment option for your practice. Be succinct in your policy and be sure to ask for questions to eliminate concerns. If this is a new process for your practice, introduce it slowly with several communication methods before it goes into effect. This will reinforce your practice’s quality relationship efforts and make everyone feel good about the change – staff included.
• Nonpayment: Develop what steps will be taken for a patient who simply does not pay. At what stage will the balance go to collections? When will it be reported to a credit bureau? Will legal action be taken? Determine the best policy for your practice and demographics.
• Patient-centric communications: Educate everyone (patients and staff) continually on your payment and collection practices. Approach in a manner that conveys you want to collaborate with them on how to pay medical bills in the quickest time frame possible. Life happens and financial circumstances can change very quickly; be adaptable and sensitive to these adjustments. At the end of the day, the majority of patients do want to pay, especially when the treatment works. Show real empathy for their financial situation through your words, tone, and body language.