By Angie Currans
AR … what is it, really? AR, of course, is the accounts receivable of your dental business. But it is, in reality, so much more! AR is your main source of revenue. It is the fuel that keeps the engine of your business going. It is the resource that funds your ability to do dentistry, to hire qualified staff, to purchase state-of-the-art equipment, and to provide excellent service to your patients. It is your present and it is your future. Bottom line: AR is the lifeblood of your dental practice.
Do you have a true assessment of your AR? You are busy! Your main concern is the care of your patients. You trust your team to take care of your AR. Most doctors believe in their team members, which is a great thing, but if AR is, in fact, the lifeblood of your dental practice, is just “trusting” adequate? Do you not need a true, up-to-date, ongoing, current assessment of your AR?
In the words of Ronald Reagan, “Trust, but verify.” When it comes to your AR, you want to trust but you need to verify. You do trust your team. But there also needs to be a method to verify. Verification is done by putting in place a dependable checks and balances system. You don’t do this because you don’t trust; you do it because it is the best practice in dental -- and in all -- businesses. You will find a good checks and balances system operating effectively in all successful businesses. In the final analysis, “trust, but verify” (a good checks and balances system) protects everyone in your practice, and it will protect your AR.
In 1993, I had the privilege of working with a great orthodontist who was opening a brand new practice. Ten years later, this practice was successful and profitable. The doctor and I had worked hard to build and train an efficient team that we trusted. However, even with the trust that was built over that 10-year period, we still put in place a reliable checks and balances system. We never lacked trust in our team, but for us it was just a matter of good business practice. And it worked!
What about documentation in your office? What does your AR documentation look like? Do you know? Documentation is one -- if not the most important -- aspect of a dental practice, and that especially applies to AR. Knowing what good documentation you have in place, knowing the right questions to ask about your documentation, and knowing what constitutes good documentation is the path to developing appropriate documentation for your AR. And appropriate documentation is critical in maintaining a successful AR. In AR, remember, if it isn’t documented, it didn’t happen -- and you can’t get paid for it.
Do you know what to look for to have a successful and profitable AR? One significant area of a successful and profitable AR is aging reports. Doctors, do you and/or your team know how to run your aging reports -- both private and insurance? Do you know what the percentages should be in the aging reports? As the doctor of the practice and leader of your team, can you equip the team members to effectively evaluate aging reports and manage your AR? Equipping and training is a never-ending process in controlling aging reports and in managing AR -- a process that requires leadership.
Doctors go to school to learn dentistry, not necessarily to run a business. You want to do dentistry. You want to take care of your patients. It is certainly true that your successful dental practice must be 100% good service and care for your patients, but it is also true that it must be 100% best business practices. For a successful dental practice, there can be no compromise in either area.
Having a third party, such as an AR specialist, do an assessment is an important first step in evaluating your AR -- your best business practices. A third party brings a new perspective, objectivity, and an unbiased approach to the assessment. The improvement of the AR process can possibly mean more funds, which can mean better equipment, more benefits, and raises and/or bonuses for everyone in the dental practice. As the goal of the third party is solely to improve the AR process, your entire team will benefit from this third-party assessment.
After being in the dental business for 20 years, I have become a firm believer that you never stop learning from others. In fact, I recently had an experience that confirmed this. I was assisting in a dental office and the front office assistant gave me a new way of looking at an insurance aging report. I had not thought about this perspective before. This assistant was new to dentistry. Because she had “fresh eyes,” she was able to see something I had not seen -- something that gave me new insight. Likewise, fresh eyes from a third party can bring new insight to your AR. The saying “You don’t know what you don’t know until you know it” is true when it comes to dental practices, specifically in the area of AR. A third party can help you “know it.”
A professional AR specialist can provide assistance that will help answer many of your questions and concerns. An AR specialist understands aging reports and the method to evaluate those reports. A specialist can assess the quality of your AR documentation. This professional third party can provide leadership to train and equip your team to effectively manage your AR. Bottom line: an AR specialist can help you know your AR, which will lead to getting accounts paid, and finally, to increasing your revenue (the lifeblood) to operate your successful and profitable dental practice.
Know your AR! Don’t let your revenue disappear down a hole called AR. Put it in the bank!
Angie Currans has worked more than 20 years in the dental/orthodontic field and has worked in many areas of the practice. In the last few years, her primary focus has been account receivables. She has a passion for making practices more profitable by using the most effective method of account receivables, and this has led to the development of Currans’ company. She can be reached at (502) 319-5556 or by e-mail at [email protected]. She also offers free bi-monthly AR tips, which you can receive by e-mailing [email protected].