by Linda Miles
Have you ever wondered why some dental practices have very little money
in their Accounts Receivable while other practices have enough on the
books to pay the national debt? It’s all about ATTITUDE, specifically the
dentist/owner's attitude about money and his or her fees.
Many dentists dislike answering fee questions from patients. They also feel guilty when it is time to increase their fees. If one or two patients complain about the fees, it seems like 10 patients per day are complaining. Inadvertently, these negative money attitudes are passed on to the staff and patients. We know for a fact that Accounts Receivables are higher in a low-fee office than in one with above average fees. Why? Because in the lower-fee office, someone — and in particular, the dentist — thinks the fees are too high. Patients pick up on this Dr. Nice Gal and Dr. Nice Guy attitude and take advantage of it.
About 30 percent of all dentists are totally confident and comfortable with their above-average fees. They know that the services they provide, the facilities in which they provide these services, their technology, and staff are above average, so why have just average fees? This confidence is passed on to the staff, and patients sense this and develop an attitude of gratitude about their. As a result, they have no problem paying the presented fees.
Many dentists use the excuses “we practice in a rural setting” or “the economy in our town is really down these days” or “our patients need their money for holidays, back to school expenses,” and the list goes on. The best excuse is “we always have a bad month in July (insert the month of your choice), so we expect it." All of these excuses are coverups for the fact that the money attitudes in this practice are unhealthy.
Let’s face it, the economy is down, patients' earning power has been compromised in some areas of the country, and some areas of the country are not as affluent as others. Have you also noticed, however, that these same patients who can’t afford dentistry find money to eat out six times per week, buy new cars, trucks and motorcycles, and go to movies and use tanning beds?
Accounts Receivable balances in dentistry were 2.0 to 2.5 times the monthly production 25 years ago. In the late ‘80s,. the A/R was considered healthy at 1.5 times monthly production. With the introduction of credit card usage in dentistry, the reduction of A/R started. By the early ‘90s, dental finance companies began a new and even more exciting trend in A/R management. Now companies such as CareCredit®, the profession’s leading “financial partner”, can say with pride, “Patients of all walks of life and at every income level can now enjoy their healthy, attractive smiles while they make comfortable monthly payments over time." Even in the most affluent areas of the country, if a financial partner is not part of the accounts receivable management t program, practice growth is limited by nonaccepted treatment plans because this is truly a “pay as we go” society.
I’ve personally seen practices increase productivity by $15,000 to $30,000 per month (per dentist) when:
1. The dentist and team developed new financial communication skills as competence creates confidence.
2. Fees were based on the quality of the services rendered and everyone in the practice realized if skills, facility, lab technology, materials, and staff were above average, it is OK to have above-average fees.
3. Financial options were clearly outlined which included cash, check, credit card, or CareCredit.
4. The financial attitudes in the practice became positive which indicate to the patients the practice provides the highest quality of care in a very caring and professional manner. but also expects to be paid for these services.
