Knowing your numbers can make all the difference in how efficiently your office is operating.
The industry benchmark for the average dental office to collect is 98% but the goal should be 100%. This is measured by taking your collections and dividing it by adjusted production (total production minus adjustments). Ensuring that your staff is working to meet this goal can be an easy method to increase revenues and maintain profits.
There are a few ways to improve your collection percentage:
- Work with your front office to set a standard on the collection process – whether it’s taking full payment prior to the procedure, offering a clear payment plan up front, or providing financing through third parties.
- Provide incentives to your patients. This can be done by giving a small discount for paying in full and will need to be coded as an adjustment for bookkeeping purposes.
- Ensure that a staff member is calling patients to collect balances on a routine basis.
- Offer incentives to your staff if they meet collection goals and are making a noticeable effort to collect.
- Keep notes in the patients’ file that states when they should be called again or if they are unable to receive more treatment based on a past due balance.
Creating a standard of procedure for the office can be done in exciting ways for your staff while simultaneously generating larger profit margins for the practice.