Things to Know:
Information you can use
Many practices believe they can write off an Accounts Receivable debt and be able to receive IRS deductions. This is a widely believed misreading of the law.
The fact is, if the debt it not collected by the practice it is not considered revenue by the IRS.
The net loss comes right off the bottom-line, in other words directly from the practices assets.
The Top 3 Reasons practices fail to successfully collect past-due patient debt.
1. Poorly written or complete lack of a “financial policy” that clearly outlines the practices’ payment expectations.
It is very important to communicate your payment expectations with every patient. Paying late is not an option. A well-written
payment policy should state this clearly and be presented to and signed by each patient.
This is a critical start to a good communications process that will increasingly help the practice
collect all patients payments on time.
( Please note: Financial policy guidance is included in our set-up fees.)
2. The practice fails to recognize the signals of bad debt patients and waits too long to pursue the debt.
The practice may continue to send out billing statments month after month without aggressively pursuing the debt. This is largely due to fear of jeopardizing the practice/patient relationship.
The payment for services rendered should be due on the date of service. This includes patients covered by insurance. ARPC gives the practice the means and the ability to remind debtors of their obligations without having to compromise the practice/patient relationship.
3. The practice has no system in place for efficient Accounts Receivable collections.
The practice that utilizes ARPC has access to a proven system that works effectively in the health-care world. A system that collects more debts for lower fees and ultimately improves the practices’ bottom-line.
Practices should utilize this service even if they believe they have an adequate collection process in place. You can always collect more.
Every practice has patients who pay late or do not pay at all. For those situations, ARPC is the perfect solution.