Collecting on payments for services rendered from patients and third-party payers, such as vision plans and medical insurance, is crucial to the optome- trist’s ability to practice, provide jobs, and, of course, help patients. That said, it’s no secret that collections can be a challenge. With that in mind, this article provides action steps from your colleagues on how they’ve been more effective in this area.

Communicating expectations with patients
Communicating expectations regarding payment clearly throughout the patient journey is crucial for a healthy accounts receivable, asserts Ann Rea Miller, OD, and owner of Visual Eyes, in Lima, Ohio. At her practice, she says this communication begins with her front desk staff collecting the patient’s vision and medical insurance about a week in advance of a patient’s appointment.

Dr. Miller says her staff does this, so they can re- view what benefits are available to the patient and what the patient’s financial responsibilities may be, if any, when the patient checks in for their appointment.

For example, if the patient is presenting for a comprehensive vision exam, but they are not yet eligible for a frame benefit, staff would discuss this with the patient. This way, the patient is aware that they would be financially responsible for the purchase of eyewear at that visit.

Dr, Miller says she has found that the success to patient understanding is “true communication in a one-on-one setting.”

Communicating expectations regarding payment continues in the pre-testing area of Dr. Miller’s practice, where she says staff explains that a specific diagnostic device may be beneficial to the patient but not covered by their vision or medical plan.

In the optical, Dr. Miller says her optician reiterates with the patient the patient’s benefits and the costs associated with the spectacle lens recommendation.

“Transparency regarding the patient’s vision and medical plan benefits from the start and throughout the patient’s visit with us has not only facilitated collections, but it has also increased patient satisfaction with the practice because staff doesn’t surprise them with a bill,” she points out.

Dr. Miller offers this pro tip on getting managed care information early: “Take the time to input the details of plans for large employers in your area into your software for ease of use down the line.”

Educating staff on billing
Chad Fleming, OD, FAAO, CEO/owner of Wichita Optometry, in Wichita, Kan., says he meets with his staff weekly to discuss collections. He can then  identify where a related issue is coming from, be it in private pay, managed care, environmental factors, such as the economy, or something else.

“Then, we take action steps to rectify the identified problem,” he says.

For example, Dr. Fleming says he and his staff recently identified an increase in outstanding balances for patients due to an increase in past due balances for small payments, $10, $20, $30, etc. at one of his five-location practices.

To rectify this issue, he says the practice put a notification system (e.g., first notice in the mail, second notice is a phone call, third notice is a text message where a payment plan may be offered) in place.

For those patients who were not receptive to the notification system, Dr. Fleming says he had staff place a note in the patient’s file, so staff could clear the bill with the patient before future appointments, and he hired a collection agency that was in line with treating his patients with respect.

For those wondering about the possible prosperity of outsourcing collections or partnering with a third-party entity, Steve Vargo, OD, MBA, optometric practice management consultant at IDOC and Optometric Management’s “CEO Challenge” columnist, recommends careful vetting via interviewing the company regarding their services, associated fees, and whether the company has the capacity to handle the practice’s needs. However, he notes, an in-house staff person will still be needed to be a liaison between the practice owner and the company.

Accepting multiple payment methods
Offering various payment options, such as credit/debit cards, ACH transfers, digital wallets (Apple Pay, Google Pay), and flexible payment plans accommodates a broad range of patient payment preferences, reducing friction during payment, explains Dr. Vargo.

“With more options available, patients are less likely to delay paying their bills, as they can choose the most convenient payment method at the time of service,” he explains. “By allowing alternative payment methods, like payment plans, practices can help patients manage larger balances over time, reducing the risk of uncollected payments.”

Dr. Miller notes her practice offers a specific health care finance program, in which a percentage of the total amount due goes to the program but her practice receives the payment immediately.

Collecting copays prior to the visit
Dr. Fleming says this action step has been a “big advantage” to his practice, as many of the practice’s bills are small, or roughly $20 balances.

“When co-pays are collected prior to the patient seeing the doctor, it reduces the back-end workload significantly,” he adds.

Automating payments
This can reduce the administrative burden to the practice, eliminating the need for manual follow-up, while supporting efficient operations and fewer errors, points out Dr. Vargo.

“Automating payments can also improve patient compliance, as they are less likely to miss payments,” he says. “This will lead to more consistent cash flow and reduce the number of outstanding balances.”

Using software to help
Practice management software can streamline billing and collections processes by automating many aspects of the revenue cycle, from claims submission, to patient billing and payment tracking, making the entire process more efficient, notes Dr. Vargo.

“Modern software provides real-time analytics and insights into accounts receivable, allowing practices to identify trends in payment delays or patient balances and take steps to address them,” he explains. “Such software can also help with automated reminders and follow-ups, notifying patients of outstanding balances via email or text, reducing the need for manual outreach and improving collection rates.” OM