Chiropractors have been facing a severe issue of uncollected accounts receivable. Depending on which region of USA the Chiropractor operates, this issue may vary from moderate to severe. Just to give you an idea how past due accounts quickly eat up into profits – If a Chiropractic practice works on a 15% profit margin, say 5% of their patients do not pay, then effectively 35% of their net profit is gone. Actually collecting money from existing patients is more important than getting new patients.
Chiropractors and their staff are neither trained nor well equipped in collecting debt, therefore it is very important that they take proactive measures to minimize unpaid accounts. This includes communicating the cost to the patient in advance and insisting that he should make payment on the day of treatment. Individuals who have hard time to even pay the co-pay fees, reschedule their appointment as they have a higher chance of not paying for the treatment anyway. Send bills/notices more frequently instead of once a month.
Still there will be a sizable number of patients who will not clear their bills, instead of writing these off involve a professional collection agency. Chiropractors may be a part of a large practice/hospital or may be running own clinic, but bad debt hurts all.
One simple rule … Once you are unable to settle the account of a patient in 60 to 90 days, it is a high time to forward this account to a professional collection agency. Delaying this step will increase the past due age of your account, making it harder to collect.
Check this: Cost of hiring a collection agency
* Services offered by a collection agency includes collection letters, calls and legal action. Their representative should be able to explain you which service is appropriate for you.
* Make sure that your agency is accredited by ACA (American Collectors Association) and follows laws specified by government under FDCPA, TCPA etc.
* Debt collectors should be properly trained and should follow a diplomatic approach to collect your money, if it fails they they should move over to a more intensive approach.
* They should have a 24/7 online portal and follow steps to secure your data.
Contact us if you are looking for a collection agency with experience in your industry.