Physiatry Practice Management Resources

Five dollars may not seem like a lot of money. But multiply it by 20 patient visits a day, 200 days a year and it adds up.
That’s what’s at stake in collecting patient copays. Yet many practices leave much of it on the table because they don’t focus on collecting these small sums, says Debi Croes, a principal with the Croes Oliva Group, a practice management consulting firm based in Burlington, Mass.

“It simply falls to the bottom of the list of things to do because people think it’s not worth making a big deal out of it.”

But collecting copays and deductibles doesn’t have to be a big deal, Croes notes. Following just a few simple steps can help bring in more money at the time of service — and eliminate the substantial cost of carrying and billing small accounts.

“It has a lot to do with how well prepared your staff is to collect copayments, and how comfortable they are asking patients for money,” Croes says.

On the preparation side, knowing which plan a patient belongs to and the amount of that plan’s copay are critical. “It’s important to do as much work as you can up front so your receptionist will have the information when the patient arrives and can be ready to collect the proper copayment.”

On the comfort side, your staff needs to be trained to know how and when to ask for money. “People have a very hard time asking for money if they have never done it before,” Croes notes. “But people can change their attitudes about collecting money.”

Adopting clear and consistent copayment policies also helps patients know what to expect — and to be ready with their $5 or $10 when they come to see you. “By discussing your payment expectations up front you help shape patients’ expectations. It doesn’t take long before paying the copay becomes second nature.”

And that can add up to significantly increased cash flow — while actually reducing administrative expense. “You win on both sides of the equation,” Croes says. Deductibles and uncovered services can add up, too

Just as important as collecting copays up front are collecting deductibles and fees for uncovered services. While it may take a little extra legwork to collect these at the time of service, doing so can improve cash flow, cut collection costs, and reduce claims rejections.

For deductibles, the issue is nailing down whether the patient or the carrier will be paying. That requires tracking or otherwise determining what the deductible is and how much the patient has paid to date.

For uncovered services, the big question is what the plan covers. Most plans have a common core of covered benefits, usually including emergency services and sick visits. But extras, such as well-woman visits and routine eye exams, vary.

These issues can be tracked at the same time patients’ coverage and copayment information is being obtained. “It’s really a matter of having the system in place,” Croes notes. “About 80 percent of this is routine. If you manage it so that it is handled routinely, you have the resources available to meet the 20 percent of cases that are emergencies.”

From: Physicians News Digest