collecting money shouldn't be painful

Dental CoPilot here!

Ok, let's get awkward and talk about money!  Why does the mere mention of money bring up anxiety for so many people?  Money is merely a tangible exchange of services.  You scratch my back I scratch yours.  Simple as that.  We value something we exchange something we value to receive it.  Its not scary!  But as I visit your offices and watch team members awkwardly trying to collect money I have come to realize that many of our team members don't understand what money is and how to ask for it.

Let me give an example.  I was recently in an office the patient had just been brought to the front desk to "check out".   The team member hands  the completed treatment plan to the patient and says, "Wow! That's a lot of money!  Let me go see if he can give you a discount."   The patient hadn't made a comment or showed any concern.  The patient was an older well dressed woman.  She smiles tells the team member that it isn't necessary, she can pay the full amount.

Undaunted, the team member jumps up and heads to the back to talk to the dentist. The woman looks at me and says, " I hope he doesn't think I asked for a discount!"  She was clearly embarrassed.

The team member interrupts the dentist and in front of the patient he is treating she says, "the price of that crow was really high.  Can we give her a discount?"  She has just created a mess for the dentist. One, she has said his prices are too high-in front of a patient! That patient is now questioning his integrity.  Two, he is backed in a corner and has to give a discount. Three, now he will need to give the patient he is treating a discount.  He can't win!

The next patient is brought to the front desk.  he hands her a credit card.   She hands it back and says, "you can get a discount if you pay with cash!"

He looks visibly uncomfortable and tells her, "it's ok, just put it on my card".  She again refuses and tells him that she will be in the office for several hours so he can run to the bank and bring back cash. He is uncomfortable and obviously doesn't have any access to cash and needs to use his credit card but she is not picking up on his non verbal clues.  After some debate he leaves to go find cash and I wonder if he will ever come back.

Clearly, this girl has some money problems of her own and is projecting them onto each patient.  Her relationship with money is affecting her ability to do her job.  This happens on all kinds of levels in most offices.  I hear team members say, "Do you want to pay today?"  And I cringe!

So how do we change these mind sets that are affecting our practice?  First, it's time for a team meeting!  Start by explaining that money is just the means we use to exchange services or goods.  That's all. Nothing more.  It is not your friend nor your enemy. It only has the power you give it. Remove the drama that is associated with money. Again, it is merely a means we use to exchange for goods and services. 

Then, ask the staff if there are any fees they are uncomfortable or think need to be adjusted.  Once they are identified examine why they are set the way they are?  Are they labor intensive? Time consuming?  Do they require a lot of expensive materials (ie, a bone graft)?  Help the staff understand your thought process.  Be open to hear their thoughts and make adjustments as needed.

Explain your overhead costs to your team.  Everything from materials to the power that turns on the lights is overhead. Insurance write offs play a huge roll in overhead costs.  And in most offices employee compensation is one of the biggest costs to an office.

Now that everyone understands and is comfortable with your fees, do some training on collecting money.  Here are my top tips for collecting money.

1. Never ask if they want to pay. Instead say, "how would you like to pay?" There should be the expectation that you pay as you leave.  No one goes to the grocery store and decides if they want to pay as they are checking out. That decision is decided as they load their cart.  Your patience decide to pay when they accept the treatment plan and make an appointment for the treatment to be done.

2. Never make assumptions about your patients ability to pay.  Some very wealthy people dress like they don't have a dime to their name.

3.  Do not press your money problems onto your patients.  If you are in debt as stressed about money, leave it home.  Those are your issues and have nothing to do with the transaction between the dentist and the patient.

4. Never show fear or look uncomfortable.  Practice looking someone in the eye, smiling, and saying, "Mr. Jones, your total for today's treatment is $3,456. How would you like to pay for that?"  This is a fun team building exercise!

5. Have several options of payment resources available for your patient. Accept credit cards, checks, even an outside lender.  You do not offer these until the patients asks if they can use a credit card, or if you have financing.  Again, don't make assumptions about who can pay and who can't.

6.  Never let anyone leave without paying or without a clear and written agreement for payment signed by the patient.  When it's in writing there will be less misunderstandings and unmet expectations.

7. Look for other outside financing for patience to make payments to. Do not become the bank.  When patients owe you money they will be  uncomfortable and will avoid you.  This is not a good way to take care of them and meet their dental needs. Nor does it make good practice sense.  Many arguments and lost patients have been about incurring interest on an unpaid treatment.  Let the credit card company or bank be the bad guy!

8.  Run an aging report and learn why you are carrying these accounts and why they haven't been collected.  Involve the staff to make a plan to collect. 

9. Run a report to get a clear vision of the amount of money you are writing off each month and work. Work to understand where these are coming from and how to lower that number. All too often someone is uncomfortable asking for money and finds it easier to just "write it off".  Even these small amounts add up quick!

10.  Look for the right person in your team to check out your patient and collect money. Every now and then listen to what is said when a patient is checked out.  Be brave and make changes if necessary. You can't afford not to.

11.  Team members can sense if you are uncomfortable talking about money and fees.  They will adopt your fears and follow your lead.  If you can't have these conversations comfortably it's time to hire a consultant, like me, to come in and train your team! (If would like help with this, leave your info and I will contact you)

If you you can't collect the money owed it won't matter how great your practice is or how excellent your dental skills are.  The doors will close and your wont be there to provide your patients with excellent care!  So start the conversation with your whole team today!