AMA Victoria - Vicdoc August/September 2019

Traditionally, the billings and collections functions of medical practices tend to fall between the cracks. The focus of every practice is going to be on providing high quality medical care to its patients. The practitioners invariably will have minimal interest and experience in backroom office functions. As a result, the billings and collections functions are invariably delegated to the bookkeeper, accountant or receptionist (depending on the size of the practice). The first step for every practice to take is to recognize that this is a specialised area and in most practices, it is handled poorly. For the practice to change direction, a critical first step is to appoint someone who is responsible for this function. For convenience, I will refer to the appointed person as the ‘credit officer’ (a clunky term which I would not recommend you adopt). In most practices, the credit officer will also be handling other functions. I would not recommend that the role be carried out by one of the practitioners. For the credit officer to be effective, he or she must be provided with a clearly defined role, be given the resources to carry it out and be given the authority to make decisions. The credit officer need not be the person who actually handles the function, but in small practices it is likely that the credit officer would also be the hands-on operator. The credit officer must define the credit terms for each category of service provided. For example, many categories may involve bulk billing or payment at the time of service, whereas ongoing treatment and specialist services may involve provision of seven, 14 or 30 day payment terms. The credit officer will examine every step in the process, from the time a patient registers with the clinic, the process for generating invoices and the different payment methods. Most invoices are poorly designed and do not allow for a simple and clear cut process for the patient to effect payment. Ensuring that full patient information is obtained is critical to the success of the system. In particular, email and mobile numbers are now more important than postal addresses, because this is the most effective way to contact most patients. Reporting by the credit officer to the practice manager (or practitioners, in the case of smaller practices) is critical and is the means by which the credit officer is ultimately judged. The practice manager should be provided with a weekly report which details the status of all outstanding invoices. A successful credit officer will increase the payments on delivery of service, reduce the amount outstanding beyond allowed credit terms and will be taking action against all accounts which are outstanding beyond allowed credit terms. In summary, none of the above is difficult to achieve. The cost to the practice in implementing best practice is almost zero, the changes can be made quickly and the results will be tangible, in that there will be significantly improved cash flow and a reduction in losses from bad debts. Roger Mendelson CEO Prushka Fast Debt Recovery Best practice medical billings and collections 54 | Vicdoc August / September 2019 August / September 2019 Vicdoc | 55 Dedicated to you, dedicated to the profession Private health insurance products are issued byThe Doctors’Health Fund Pty Limited, ABN 68 001 417 527 (Doctors’Health Fund), a member of the Avant Mutual Group. Cover is subject to the terms and conditions (including waiting periods, limitations and exclusions) of the individual policy. Doctors’HealthFundisthetotaldeal foranydoctorandtheir family. TopCoverGoldprovidestotal con dence. Dr Ken Sleeman Former President of AMA Victoria Doctors’Health Fund member since 1999 Wedon’tcall it TopCoverGold fornothing. 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Call 1800 226 126 today to talk to our expert Member Services team. doctorshealthfund.com.au Doctors’Health Fund is the preferred provider of AMAVictoria Prushka acts for in excess of 57,000 small to medium size businesses across Australia and operates on the basis of NO RECOVERY – NO CHARGE. www.prushka.com.au Free call 1800 641 617. The writer is also the author of The Ten Mistakes Businesses Make and How to Avoid Them and Business Survival , both published by New Holland Publishers. Prushka is a member benefits partner of AMA Victoria and offers AMA members an ongoing discount of 10 per cent on its products and services. ADVERTORIAL