Create financial policies to enhance practice collections

The policies should strive to optimize revenue recovery and clearly outline what the practice considers acceptable in terms of patient payment timing and extended payment plans for large balances. Educate patients on your payment policies while they are making their appointments. Your payment policy should explicitly state that payments are due at the time of service. It should be posted in your office, listed on all billing forms, and communicated to patients before their appointment. As you are developing your policies, you should review your payer contracts. When it comes to collections, you may find that you have stipulations in your payer contracts about how, when and what you can collect from your patients. Make sure to look at these stipulations before implementing your collections policy. If your practice fails to establish written policies, you are jeopardizing the ability to improve cash flow and maximize your revenue.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.