November 2010

 INCREASING PAYMENTS AT THE END OF THE YEAR

There are several ways to capitalize on events at the end of 2010 to improve your payment situation.

• It appears that the tax breaks for individuals earning more than $250,000 a year may go away in 2011, which means it would be better for practices, on a cash accounting basis, to put as much income into 2010 as possible.

• Even in a down economy there is still more money available to individuals from Christmas and Hanukkah savings clubs, some yearend bonuses and cash gifts.

• In December, companies paying every two weeks will have 3 pay periods, and those paying every week will have 5 pay periods this year.

What can practices do to increase payments between November 1 and December 31?

• Send out statements in December, just as you have every month.

• Schedule three billing cycles during this two month period, i.e., the weeks of November 1, November 21, and December 14.

• Attempt to reach patients by telephone that have not responded with a payment after receiving two statements.  Do not contact debtor-patients that have not responded to three or more statements.

• When scheduling appointments, remind patients that co-payments and deductibles are required prior to seeing the doctors.

• Accept credit or debit cards, even for small payments.

• Aggressively follow up with insurance companies demanding payment before the end of the year.

• Let patients know that medical bills paid prior to December 31, can be used as deductions on their 2010 income tax returns.