Practice Management Alert

Question: Our office is trying to figure out how to increase the collection rate for self-pay patients. We-re considering collecting before the physician renders service. Is this a feasible option?

Utah Subscriber

Answer: The problem you face in trying to collect from a self-pay patient before the time of service is that you may not know exactly what services the physician will perform.

Example: An established patient comes to your office for a routine physical. You charge the patient your practice's standard office visit fee for this service and collect before the patient goes to the exam room to see the doctor. During the office visit the patient requests the flu shot. Are you going to be able to successfully bill and collect on the injection service since the patient already paid for the E/M visit?

Therefore, you may want to bill the patient after your physician submits the documentation of services he performed. If you-re billing the patient after the service, you may want to do so before the patient leaves your office rather than sending a bill. Often this increases the collection rate. You can even consider offering a discount to self-pay patients who pay in full immediately after the time of service.

Best bet: When a self-pay patient asks how much a visit will cost her, provide an estimated range but explain that the amount depends on the actual service. For example, if a patient schedules an appointment because she has a sore throat, you can estimate the cost of the office visit and a rapid strep test.

Good strategy: You can set up a policy in which self-pay patients pay a set amount before the service as a sort of deposit, which you-ll then apply to services rendered. If the patient overpays as a result, you can either refund the difference or use it as a credit toward future services.