If low collections are weighing down your practice’s cash flow, you’re not alone. A steady stream of timely payments is crucial to keeping your practice running smoothly—yet many dental offices struggle with overdue balances, uncollected payments, and inefficient billing systems.
The good news? You don’t have to accept low collections as the norm.
Here are 9 proven strategies to help you collect payments faster, reduce outstanding balances, and keep your practice financially strong:
1. Create a Clear, Consistent Collections Process
A well-structured billing and collections protocol ensures payments don’t slip through the cracks. Your team should:
- Use automated billing software to streamline invoices.
- Provide clear and easy-to-understand statements.
- Follow a standardized process for overdue accounts.
2. Offer Multiple Payment Methods
Make it easy for patients to pay by offering flexible options such as:
- Credit & debit card payments (both in-office & online).
- Digital payment portals for convenience.
- Third-party financing options like CareCredit for larger treatment plans.
3. Reward Patients for Paying On Time
A small discount for early payment can motivate patients to pay faster. Even a 5% discount for balances paid within a certain timeframe can significantly reduce outstanding accounts.
4. Stay on Top of Overdue Accounts
A proactive follow-up system is essential to reduce unpaid balances.
- Call, email, or text patients with friendly payment reminders.
- Set a structured follow-up schedule—don’t let unpaid balances linger.
- Monitor A/R reports weekly to address overdue accounts promptly.
5. Use a Collection Agency as a Last Resort
If an account remains unpaid despite multiple attempts, consider working with a reputable collection agency that specializes in healthcare. Just be sure they prioritize patient-friendly communication to preserve your practice’s reputation.
6. Educate Patients on Payment Expectations
Many payment issues stem from miscommunication about financial policies. Ensure that patients:
- Understand their insurance coverage & out-of-pocket costs.
- Receive a clear financial policy before treatment begins.
- Have a chance to ask questions before they receive a bill.
7. Regularly Review & Update Your Policies
Financial policies should evolve based on your practice’s needs. Schedule periodic reviews to:
- Identify common payment bottlenecks.
- Adjust payment terms to reflect what works best.
- Update your approach based on industry trends & best practices.
8. Train Your Team on Collection Best Practices
Your front desk team plays a huge role in ensuring payments come in smoothly. Regular billing and collections training can:
- Improve confidence in discussing financial matters with patients.
- Reduce errors in insurance billing & claims follow-up.
- Help team members handle payment objections with ease.
9. Build Stronger Patient Relationships
Happy patients are more likely to pay on time and complete treatment. Focus on:
- Creating a positive in-office experience.
- Providing excellent communication about treatment & finances.
- Building trust, so patients feel comfortable discussing payment options.
Take Control of Your Collections Today
Improving collections doesn’t happen overnight, but small, intentional changes can lead to stronger cash flow, less stress, and a more profitable practice.
We love nothing more than to make sure YOUR dental practice is truly thriving! Schedule a call.
Don't forget to check out our podcast for more tips.
