When it comes to patient collections, many practices think: the more aggressive, the better. Patients need to know that you mean business. The thing is, if you use threatening language, you also run the risk of putting people off.
Of course, not wanting to offend your patients shouldn’t stop you from doing everything you can to collect on delinquent accounts. You just need to approach the situation carefully so you don’t damage the relationships you work so hard to set up and maintain. After all, your practice needs to keep patients to stay in business.
Phone calls and email follow-ups are usually enough to get payment from late-paying patients, as most patients have every intention of squaring away their accounts. In fact, according to a McKinsey survey of retail healthcare consumers, 98 percent of patients want to pay their medical bills, but they’re confused about what they owe, need reminders from their physician, or lack the financial resources to do so. In the case of these patients, an aggressive medical collection letter isn’t going to do the trick.
Instead, physician practices should rethink their strategy and consider rewriting their medical collection letters with the following three thoughts in mind:
Watch Your Language and Tone
A good collection letter should convey urgency without being intimidating. Patients will lose trust in your judgment if you make threats about “final warnings” and turning their accounts over to collections. More importantly, these kinds of letters can make patients even less inclined to pay.
How can you stress the seriousness of the situation without crossing the line? Try incorporating messages into your medical collection letter like, “We understand that you may be experiencing financial difficulties, however, we rely on payment from each one of our patients to continue providing quality medical care.”
Focus On The Facts
Instead of mentioning an attorney or the fact you might turn their account over to a credit bureau, stick to the facts. Let the patient know how much they owe, what services the bill covers, and their payment options. Offering to help the patient understand their medical bill can be much more effective than making them feel like they need to pay “or else!”
Draft More Than One Letter
Send a patient with a 30-days past due to bill a different letter than you send a patient you haven’t heard from in 90 days. The first letter can take a friendlier tone like you’re just checking in: “We’re following up to remind you about the $92 you owe our practice for your most recent lab work. Please call our office to coordinate payment. We are more than happy to discuss your account with you at any time.” For patients you haven’t collected from after multiple attempts, you’ll need to be firmer. “If we do not receive payment or hear from you by November 1, 2015, we will need to consider taking an alternative action.”
Remember, on average, only 2% of patients believe they shouldn’t have to pay their medical bills at all. Not even a medical collection letter, no matter how masterfully drafted, is going to convince this group. Sending them to a medical collection agency remains inevitable.
So focus your practice efforts on the patients in the 98% – those who want to pay but for whatever reason hasn’t done so. For these patients, a carefully worded letter can persuade them to mail the payment or pick up the phone to discuss financing options.
What medical collection tactics have proven effective for your practice? Let us know in the comments section below. In the meantime, sign up for the Power Your Practice newsletter.
Amanda Guerrero contributed to this post.
