Slow paying doctors

[John C]

I'm sure I'm beating a dead horse here but I'm a bit frustrated that it is the 21st of the month and I have only been paid 15% of what is owed to me for the September statement that was sent out at the beginning of this month. At what point do you guys start calling doctors to try to collect. I have a comment on my statement asking them to pay by the 20th of the month. I have six accounts and only my smallest producer has paid in full. One doctor paid half of his Bill and the rest have paid nothing. Some of there cases were invoiced way back on Sept. 1st. So they are 51 days since invoice. Am I expecting too much?

 

[JohnWilson]

John I will share some harsh words but if you are open to the thoughts it will change your life

This is 100% YOUR FAULT

Sucks to hear this but like you I was right where you are for 20 years of my career. Struggling with cash flow and always chasing my AR. I was brought up by my father that was old school, he taught me to look in a mans or ladies eye shake their hand and their word was all I needed.

Well in the business world and most importantly the dental world this just does not work. Sad but there are some really horrible business people that have DDS behind their names. My breaking point was when I trusted a long term client and allowed him to get to 90 days past due with close to 30k of charges. Yes 30K!

Well he preceded to lie and tell me stories so he could eventually file bankruptcy and walk away from it all.

It was at this point I decided that I would never allow this to ever happen again.

I revised my policy for collections. I mandated Credit cards for all new clients and incentivized all existing clients to change to this format. In about 6 months I transformed my account base to allow myself to split half my clients statements to be run 1-30 and the other half 15 to 15th. We have a very small percentage of my grandfathered in clients that still pay by checks but they are secured by a credit card. If I do not receive a check 7 days after I close their month I charge their card. When I took the control back and did not allow these clients to dictate when they felt it was time to pay, this allowed me to focus much more on what we were producing and how we produce the product and allowed me to purchase new equipment and expand with ZERO debt.

Now don't get me wrong it was a struggle to stay firm, I lost some clients and when a new client calls and wants to start sending some balk at my terms. I just do not budge. I stand firm, I enforce policy and its non negotiable.

Remember its your business, take control, remember this business is plenty hard already don't allow anyone or anything to steal more stomach lining from you while you wait and wonder if you are going to be able to pay your bills on time.

Good luck to you

 

[John C]

Thanks John. As much as I hate giving the banks free money just to be able to accept credit cards I'm sure you are right. And I don't find what you said harsh at all. So what you are saying is you send statements out to some clients on the 1st and others on the 15th? Is that correct? Do you just charge their cards on those dates? I would like to know more about your policies. I'm thinking this would be good to implement at the first of the year with a letter of some sort explaining the need for the new policies.

 

[JohnWilson]

Yes every two weeks we charge cards.

The day I close the month for this segment of the active clients I run their card on the 31st day of their cycle.

Don't wait for Jan start in Nov, start tomorrow,Just don't be weak at the first sign of opposition.

Write a new business plan on what you want and how you want to achieve it. Be specific, continue to read it, revise it and hold yourself accountable to it.

Good luck!

 

[JMN]

I give them 30 days after delivery to pay. After that they are COD. And a $10/invoice/month finance and rebilling fee.
At the end of the month everyone gets a listing of payments and invoices. It is not a pay this in 30 days, but a courtesy roll-up showing current status and it says all due dates still apply, but they may pay the whole amount or by separate invoices at their option.
Don't have to, but most of the time I'll wait 1 week to print up and deliver the overdue notice.
When I do deliver it, the invoice is in an unsealed envelope, and when I walk up to the receptionist the invoice is pulled up enough to show "Overdue" while asking "Who do I need to talk with?"
This prevents the secrecy nonsense that allows some offices to play pass the buck. It also is helpful when the financial person is hiding behind everyone and stealing my money. There have been 3 ppl embezzling around here, so it's something I keep in mind.

I'd rather just get my money withput hassle, but this area is credit card adverse, so this is my best known method.

Hope that helps somehow. I've had to pull the COD
hammer out a few times, but never more than once per office.

 

[JMN]

If you can work John Wilson's way. Do It!

I cant because of old habits. Some people here will absolutely have no debit or credit cards at all.

 

[Affinity]

Time to start looking for a replacement. My accounts give me a check within a day or two of getting a statement, anyone that hasnt done that has eventually turned out to be a deadbeat.

 

[GarryB]

We give them a polite call 7 days after the due date saying I'm sure its an oversight but they haven't paid their account so will you please do that now. Its amazing how a simple call will most often work. Once someone has given a verbal promise its very hard to go back on that rather than an email saying the cheque is in the post.....disclaimer......no guarantee with this!!

We have all done the opposite, when no one is chasing a payment we put that to the bottom of the list but pay those who are chasing.

Be the one who is asking to be paid.

 

[rkm rdt]

The only one that has stiffed me was another dental tech.

 

[sidesh0wb0b]

Net15 on all my Rx forms, terms on reverse. if i am not paid by the 15th, they get a late fee (state max finance charge) and a letter in the mail. if not caught up by the 1st of the next month we will still pick up cases but we wont deliver until balance is paid in full
we offer a 5% discount or free crown for those paying by the 5th every month (or a set date recurring monthly). its helped!

 

[sidesh0wb0b]

The only one that has stiffed me was another dental tech.

you enjoyed that though, so it doesnt count :-D

 

[rkm rdt]

you enjoyed that though, so it doesnt count :-D

..said you to your mommaThefinger