Help Your Patient Pay for Treatment Without Reducing Fees

Posted November 3rd, 2007

Helping your patient to see not only the benefits of your treatment plan, but also how to manage payment, will increase both your production and your cash flow.

By Chuck McKay

You’re a dentist, a cosmetic surgeon, an ophthalmologist, an orthodontist, or perhaps run a fertility clinic. Your treatment plans frequently add up to some serious dollars. And one reality of operating a practice today is the patient’s ability to pay (or his insurance coverage) can dictate your treatment plan.

Price is not the issue. Patients don’t refuse your recommended treatment because of the price of the treatment. They say “no” when they can’t make the cost of treatment fit into their monthly budget.

Patients with insurance will make the decision on the amount of the co-pay. If their portion of your fee is too large, they’ll say “no,” too.

You can lessen the pain of paying for treatment.

1. Ask if your patient has a major credit card. If so, can they afford $45 a week? If that’s the case, fill out as many $45 credit slips as is necessary. Put the dates on the slips at one week intervals, and have the patient sign all of them. Explain to the patient that he can pay off each statement without finance charges, or let it ride as fits his needs.

Your patient won’t be concerned about the total cost. He’ll be concerned about whether he can afford the payments. $45 per week sounds like less than $193.50 per month, but either one sounds a lot less than the cost of the treatment. And since the individual charges are less than $50 you don’t need to get authorization from the card issuer.

2. If your patient doesn’t have a major credit card, explain pre-paid financing to him. He can save up for the treatment much like a Christmas Club or layaway plan. Your patient pays weekly or monthly. You act like the bank, and hold the payments. You may elect not to wait until he’s finished paying, but start the treatment when he’s reached 65 to 70 percent.

3. Finance companies are another option. You have the patient fill out an application, and submit it for approval. If approved, you’re guaranteed payment.

Some companies will offer a revolving line of credit, but others will insist that the work be completed before they issue payment.

Sometimes the interest rate is substantial, and some finance companies are more liberal in their acceptance policies. It may be to your advantage to have several available to choose from.

4. A finance company variation is available from several major credit card issuers. They offer instant decisions for most cases. There’s no sign up fee, and no minimum usage requirement. These companies tend to pay upfront, which will greatly improve your cash flow.

The more options you give your patient to make your services affordable, the greater the probability he’ll accept your treatment recommendations.

How should you approach a patient with financing options?

Whether you discuss financing options directly with your patient, or you delegate the discussion to a staff member, it should be handled with the same professionalism as the other activities of your practice.

Financial screening is an exercise in bonding and building trust with the patient. You may have only seconds to establish that rapport.

Your discussion should be relaxed, and matter-of-fact. You may say, for instance, “Some of our patients prefer to pay cash for the portion of their treatment not covered by insurance. Others appreciate the ability to pay over time. We’ve arranged several financing plans, some of which offer no interest for up to a year. Would you like to hear about financing options?”

When should you have this discussion?

• Some practitioners have had excellent results by screening prospective patients when they first call for an appointment. Among other advantages, communicating that you have affordable payment options will minimize stress, remove the payment barrier, and consequently reduce broken appointments. Whomever answers the phone will need tact, poise, good judgment and strong relational skills. Your screener will need to evaluate the patient’s reactions and decide within seconds whether to discuss finances over the phone. If the patient declines, drop it. If the screener has any doubt, wait for the patient to come to your office.
• If you wait until the patient checks in, its easy to include a welcome to the practice letter which outlines your practice’s acceptable methods of payment, and attach a finance application with the medical history forms.
• The majority of patients who choose financing do so at an interview before the exam and consultation. Keep the discussion casual and matter-of-fact. You might remind the patient that you don’t even require a down payment if he’s using an external finance company.
• The practitioner can have a major influence on patient acceptance by selling the benefits of improved vision, a nicer smile, or a healthy pregnancy at the end of the exam and treatment recommendation, before handing off to a financial coordinator “Who will help you to find a payment option that best suits you.”

Sometimes your patient will leave without committing to the financing or even the treatment. Wait several days before a follow up call or letter. Your follow up may be all it takes to nudge the patient into making a decision. Some financing companies offer postcards or sample follow up letters that have proven effective. Use them. Be sure to include additional “affordable options” information, and the name of the person to contact at your office for detailed information.

A final benefit of offering payment options…

… is the strong word-of-mouth your current patients will be spreading about the ease of affording your excellent services. Assume that everyone is a financing candidate, and watch your conversion rates rise.

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Help Your Patient Pay for Treatment Without Reducing Fees copyright © 2007 Chuck McKay and AdvanceMyPractice.com. All rights reserved.

Chuck McKay is a marketing consultant who works primarily with professional practices and owner operated businesses. Questions about incorporating financing options into treatment plans for your health care practice may be directed to ChuckMcKay@ChuckMcKayOnLine.com.