Is Your Collection Gap Stealing Profit? 5 Ways to Take Action

Tightening Your Collection Gap: A Hidden Opportunity

In the world of dentistry, it’s not just about seeing more patients or working harder; often, it’s about ensuring that you collect the money you're due for the work already performed. In Episode 932 of The Best Practices Show, Kirk Behrendt and dental coach Robyn Theisen shed light on a crucial but often overlooked aspect of running a practice: the collection gap. So, what is this collection gap, and why should you, Dr. Emily Johnson, care about it? Essentially, it’s the difference between what you produce and what you actually collect, and according to Robyn, even a small improvement can yield substantial financial returns.

Why You Shouldn't Settle for 95%

Robyn casually states that collecting 95% of your collectible production is commendable, but it’s hardly a perfect score. In fact, leaving 5% on the table could equate to thousands of dollars annually! The fundamental issue often lies not with the ability to collect, but rather with the firm financial arrangements underpinning your practice. By rethinking how financial conversations are initiated and handled at the front desk, you can nurture a culture of empowerment and confidence within your team, leading to smoother transactions and fewer missed payments.

The Power of Verbal Skills

One of the most impactful takeaways from Theisen’s advice is the importance of verbal skills when entering financial discussions with patients. It’s not merely about providing services; it’s about aligning your language when asking for payment and creating a comfortable atmosphere where patients feel encouraged to settle their accounts. This approach fosters trust and transparency, enhancing long-term relationships.

Actionable Steps to Boost Your Collections

After addressing the concepts, Robyn provides practical recommendations for tightening your collection gap. Here are a few actionable insights that could transform your practice:

• Consistent Billing: Make it a point to establish a consistent billing cycle. Ensure that patients receive clear and timely bills to minimize confusion.
• Follow-Ups: Designate someone on your team to take ownership of follow-ups on outstanding payments. This will ensure accountability and help reduce the risk of unpaid bills.
• Aim for Improvement: If you can improve your collections by just 1% or 2%, consider how that can compound over time, leading to significant profits.

Creating Financial Empowerment Within Your Team

Empowering your staff is essential in closing the collection gap. Engage your team in financial conversations and practice with them until they are comfortable discussing payment options with patients. Educating your team in this key area not only alleviates pressure from your shoulders but enhances the patient experience as well.

Conclusion: Take the Next Step for Your Practice

Dr. Emily Johnson, taking proactive steps to manage your collection gap can enhance your practice's profitability without the need for extra work. As evidenced by the discussions in The Best Practices Show, tightening these financial gabs is a strategic choice rather than an arduous task. So why wait? Auditing your financial processes today could be the unlock to tomorrow's success!