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As a business consultant during the ’80s and ’90s whose scope of services included medical practice management, I was appalled at the size and growth of accounts receivable among my clients. At the time, there were no easy answers.
But later, when I morphed into someone working in the electronic payments industry, a solution appeared: EasyPay---a software device originally developed by VISA USA and later refined substantially by its new owner, EasyPay Solutions, Inc. (www.visaeasypay.com).
From both VISA research and our experience, the number-one problem among medical practices is the timely and cost-effective collection of patient receivables. At first, the use of credit card terminals was thought to be the answer. Yet this does nothing more than collect copays, assuming payment is actively encouraged by front office personnel. (If not collected at the time of service, it has been shown to cost $20 to $30 to collect a $15 copay when one considers the expense of multiple letters, phone calls, and collections).
And copays are just the tip of the iceberg. Studies show that consumers pay their healthcare bills last, so doctors only get paid if there’s money left over.
Then consider the mystery of insurance deductibles (the source of most of the $100,000-plus that individual practitioners carry in outstanding receivables). When an insurer is queried, one gets an estimate of unpaid amounts, and it’s usually 30 to 90 days out of date.
So the question remains: how does one best collect it?
Enter EasyPay. Using a supplied card-swipe attachment to your computer keyboard, several tasks can be accomplished.
First, you can accept copays just like before. Second, the swiped card information remains on-file. With the benefit of a signed consent form (generated by the software), you are authorized to later debit the card for the actual amount of the patient’s uncovered services and unpaid deductible, calculated when the EOB arrives.
Divide Debits, Conquer Payments
Further, if you or the patient feel the amount of the payment may be too large for a single debit, the system can automatically divide the sum into equal “affordable” increments. On dates when payments are due, all affected accounts appear on-screen when the software boots up.
Once accuracy of the list is confirmed (for example, if any have been paid in full by check), a keystroke initiates all payments. Moneys appear in your account on the second business day.
An Outstanding Receivables Solution
EasyPay also addresses the problem of outstanding receivables. Presently, many of these accounts are sent to collections after costly letters and calls fail. If funds are collected, the amount you receive is often 40 to 50 cents on the dollar.
Remember, most patients want to pay their doctor, but family priorities and the vicissitudes of life often intervene. By letting the patient know an easy payment plan is available, an acceptable monthly debit can almost always be arranged.
You are happy because you get paid without the loss and acrimony of collections. Your patient is happy because the pressure of the unpaid bill is gone.
And the bonus is patient retention, since few will return to a practice when facing the potential embarrassment and uncertainty of a long-outstanding bill.
Outside Billing, Inside Solutions
Finally, even if you’re using an outside billing company, EasyPay can still be a part of your accounts receivable strategy. One EasyPay software license can support an infinite number of separate medical practices, as long as each practice has its own VISA/MasterCard merchant number and funds flow directly to your practice’s checking account.
A hybrid is also possible whereby your billing company continues to file insurance claims, but your staff arranges EasyPay payment plans directly with the patient, thus reducing billing company fees.
Best of all, EasyPay costs no more than your current credit card terminal and service and can be installed (including staff training) in seven to 10 days. It’s also amazing what a boost in job satisfaction and efficiency EasyPay produces among office personnel. They no longer spend hours each week making collection calls, which are the single largest cause of medical staff turnover.
Add it all up: greater collections, smaller collection costs, reduced staff time diverted to unpleasant interchanges with patients, and lower staff turnover.
The results, of course, are more satisfaction for you and an increase in your take-home pay---something your spouse and family will surely appreciate.
Terry Koepsell is the President of Preferred Payment Solutions, LLC. For more information, call him at 1-800-733-1553.
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