# Patient AR



## rose2014 (Jul 20, 2011)

We are nephrology group.

Our patient AR is high.Suggested we send pts to collection who absolutely refuse to pay or ignore our bills.M.D does not want to do that.Pre collection letter is also not working with M.D.

Can some one suggest what can be the next step to present to physician and see to that patients respond to our bill.Also what we can send to patients so they respond to our bill.

Has anyone handled this kind of situation.Input helps.

Anyone tried new way to collect money.Help!!!

Thanks


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## LuluBarr (Jul 20, 2011)

hey we kind of have the same problem we have started sending patients to collections but it is really kind of a hassle for us with such a small office and the collection agency so far has had no luck anyways. Some offices put their patients on payment plans, we do this often offering 3, 6, or 9 month plans. And I also know some offices offer a discount to the patient if they agree to pay their balance in full. These are some options


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## caseef (Aug 1, 2011)

We just started a new service that calls our patients that have balances.  The first day that they called we received an additional $2300.00 in payments for that day.  The second time an additional $2000.00 for that day.  We just started it in July and it has been great.  The service calls after hours and can leave a message.  It also lets up know what phone numbers are incorrect.  It has been great.  We are family practice so we also have to fight for whatever we get.


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## penguins11 (Aug 4, 2011)

We collect our patient copays up front, they are much more likely to pay if you ask up front rather than send them a bill later.  Also, we include in our new patient paperwork that the copay is due at the time of the office visit.  This has greatly reduced our AR.


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## mrueth (Aug 4, 2011)

It has become very difficult to collect, with the economy as it is. I find collecting the co-pay at the time of visit helps, but deductibles and co-insurance is more difficult to predict for collecting up front. If the patient is not paying these, you may want to look into giving a discount like 10-20% for payment up front for the balance, based on a pre-determined set of guidelines that are met for those that are financially strapped. Or, you may want to offer a payment plan that would split the payments up over a period of time, like for a $12,000.00 balance paid over 12 months=$1000.00 paid per month. Hope this helps and good luck!


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## bdobyns (Aug 4, 2011)

The most effective way to reduce the Patient A/R is to obviously collect as much up front as possible, and increase the methods of contact on the back end.  Do not just rely on a monthly statement to persuade patients to pay their bills.  You need to come up with a formula that works for you.  For example, our office we will send 3 statements.  At that time if payment arrangements are not in place on the account, the patient will be sent a collection final notice letter before sending to a collection agency.  The letter is sent and then 10-15 days later a final phone call is made.  Our intent is to ensure that no account leaves the building without the patient being fully aware of the outstanding balance.  This serves two purposes, one you will not have angry patients calling because you sent them to a collections agency, and two you have maximized your collection contact methods.  

Also, another good strategy when setting up payment arrangements is to not let the patient dictate the plan.  Take the balance divide it by a given number of months and tell them what the arrangement is do not ask what they can afford (many people will low ball you because our medical bills rank #24 on the list of bills to be paid.)  By controlling the arrangement it will allow you to separate the people that "do not want to” pay you vs. the people that "cannot" pay you, at that point other arrangements can be made. 
You have to come up with a system that works for your practice.


Additional note to potentially discuss with your physician(s):
It is their decision whether or not they want to send patients to collection agencies or not.  But, you can simply explain to them that there has to be a consequence for not paying bills.  If you never do anything with your patient accounts a reputation will form, and your patient collections will slow considerably.


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