Who is Financially Responsible to Pay Lab Bill?

[2thm8kr]

Would it accomplish anything to add a line on the rx something to the effect that the prescribing doc is responsible for payment? How they pay it is their business. Almost time for new rx's to be printed, and this thread brings up a new issue.

I bill the practice and list the docs/associates separately. Don't know if it would help, just my s.o.p.

 

[Flipperlady]

Laboratories operate under the prescription of a licensed dentist, not necessarily a dental practice. If an associate dentist prescribes work and subsequently leaves the practice, who is financially responsible for paying the lab bill? If the practice refuses to cover the dentist's lab fee, who does the lab refer to collections? The practice or the dentist?

Thanks in advance for responses.

JT

That's a good question. I think most of these practices are corporations for tax purposes. I would send the bill to the office such as
" Docs" or whatever they're called and collect from them. They can sort it out with the dentist that left later on after they pay you.

 

[RDA]

We had a dentist, who was an employee of a corporate group, leave the practice and now they are refusing to pay the bill, telling us we need to go after the dentist personally for the lab fee on the case.

I would think that it should be the responsibility of the corporation, as he was an employee. When you've sent your statement in the past, was it paid in full by the corporation, or individually by each employed dentist?

 

[Tom Moore]

To start I would call the corporation and ask for written clarification of who is responsible for the bill. An email will do.

 

[krashd133]

On a similar murky topic, has anyone ever dealt with a doctor who stiffed you on a couple months bills when they sold their practice to a corporation or another doc?
The Corp won't pay which is probably justified, yet it is still their patient. The Doc moved out of state and we can't get ahold of them either.

 

[TheLabGuy]

Wow, that's a good one, I'd forward over to collections.

 

[hammerhead]

I have sent this (fellow) I know,to meet the deadbeat face to face that's a 6-11 African American 350 that looks like hes been on fire from the shoulders up.

Case closed every time.
Just amazing

 

[jthacke3]

On a similar murky topic, has anyone ever dealt with a doctor who stiffed you on a couple months bills when they sold their practice to a corporation or another doc?
The Corp won't pay which is probably justified, yet it is still their patient. The Doc moved out of state and we can't get ahold of them either.

I've had that one. Suddenly no one is responsible for the payment and you have to get a little rough. They have usually closed the sale transaction and the seller didn't disclose the debt. Their professional corporation usually ceases to exist so there's not much recourse.

I've also had a dentist pass away unexpectedly and as an act of good faith, kept the work flowing to help sustain the ball of the practice until they found a buyer. In the end, the doctor's son (the executor of the estate) stiffed me for the bill.

 

[rkm rdt]

How about getting screwed for $3500.00 by another lab owner after you find out he closed shop and left town?

 

[Randy Hill PhD]

I'd encourage any lab to establish the correct wording that is legally binding to their state. I've had this happen to me, and I had to take it to small claims in the state where the lab was. (Va.) It is where I am. The wording needs to spell out your ( the Lab's) terms on the back of each and every work authorization form, and when payment is expected, and the ramifications if the bill isn't paid on time.
Now granted..... enforcing this with a standing account can be tricky. Maybe most of you give the dentist full net 30 days. I don't.
Say you give them net 25 days from the date of statement, and if payment is not received in lab by the 25th, then you charge them a 2% finance charge. This is your legal recourse, not necessarily written in stone. If they are a good account, pay close to being on time, no worries, but should you have to go to court, the judge is going to ask you what your terms were. Most of the time, they will never read the back of the script, and they pay basically when they pay.
I re-iterate this is for legal purposes. You and I both know that if you tell a dentist they owe a finance charge, they'll drop you like a bad habit.
But, for sure if the porcelain supplier in New York wants their money on the 25th, and you don't pay the 12.00 you owe them, they will add a finance charge. It seems to be the thinking of some dentists that they will pay you when they are ready. They'll tell you collections are slow.
Most of my accounts get pre-authorization from most of the insurance companies, or get an up front fee to do the crown. Let that go to the lab. Another thing..... paying every 30 days is still........... wait for it.......... paying every 30 days. What's the problem?
In summary, have your work authorizations read what the payment terms are, who it applies to (all associates, etc.),and should they use any other form in substitution of your lab slips make mention that your lab slip terms still apply and they, by sending you the case, agree to the terms.
Today, for example, I received a check from a client that was $600.00 short of what it should have been for 3 associates in that practice. Now, Monday, I will have to call the "office person", and listen to some excuse (right, wrong, or indifferent) as to what the hell happened! I should NEVER have to call a dentist, and I don't care how big or small the practice is, to get paid.
We run a business, and not some hobby shop! End of story.
The drawback is this: if you piss them off, their ego will never allow them to return, so be prepared to walk on eggshells.
If you have enough work to cut them loose, and it is a big enough pain for you, I'd say cut them loose, but know full well, you may never hear from them again.
I'd rather be happy than right.

 

[krashd133]

How about getting screwed for $3500.00 by another lab owner after you find out he closed shop and left town?

Yep, we've had that one too....$6k on our end