The Best Payment Options for Your Patients
Holly Jensen
In my last article, "How to Do a Proper Financial Report of Findings," I outlined three payment options when reviewing the financial plan with the patient. Here is a short recap of the scripting I used in that article.
"Mary, we can take that total you see here and you have three choices for how to pay. Our first option is monthly payments. Our second option, which most of our patients choose, is a down payment followed by smaller monthly payments. And finally, if you prefer, our third option is to pay in full. Mary, before I go any further through the plan, which of these options do you feel works best for you?"
So why is it so important that we do this rather than opting for the pay-per-visit, block of visits, or prepay model? Think about it, when people have to pay-pervisit or prepay for care, they have to make another financial decision. You are reminding them again of the cost of care. They then have to decide if there is still value in continuing with their treatment plan. By giving your patients a choice, they also don't feel pressured and you don't feel like a salesperson. They really appreciate the options and it allows them to make the choice for themselves. You may wonder why I said "which, most of our patients choose" for option two. I'll explain the psychology behind these payment options:
1. Monthly Payments: Most people pay their bills monthly, so when you offer a monthly payment option to your patients, you're not asking them to do anything outside of what they do normally. People typically stick to a monthly budget, and by establishing a monthly payment habit into their household budget, you will see increased patient retention. Monthly payments also result in the highest transition rate to the next phase of care. Why? Because, when people are making monthly payments, it's not a new purchase decision for them to make, therefore they aren't reminded of the cost yet again.
2. A Down Payment Followed by Smaller Monthly Payments: When people make a larger down payment, they feel more committed to care (just like people who prepay for care). However, it also establishes a monthly payment habit in their household budget. As I stated earlier, this is a key factor in transitioning patients to the next step of their treatment plan. Bottom line, it's the best option for committing them to care as well as making it easy to transition them to the next phase of their care plan.
This is the reason, when reviewing the financial options with patients, I plant the seed that most people choose this option. "Our second option, which most of our patients choose, is a down payment followed by smaller monthly payments."
Imagine that your patient has been making monthly payments for the past six months, and now it's time to transition the patient to the next phase of care. You say to the patient, "Mary, you're now ready for wellness care! Your monthly payment of $350 will now be only $175. Congratulations on your results!" Coupling good clinical news with good financial news (the budget for care is lower and the patient gets to continue with care) is how you will see patient retention skyrocket!
3. Prepayment: Although prepays may sound great, the reality is that most people do not prepay forthings in everyday life. I'm sure you would agree that most people in today's world make monthly payments, and only a small percentage of people pay for large purchases in full. You also have to realize that if patients do prepay, it's not your money until the services are rendered. If they have to discontinue care for any reason, such as if they move away, the doctor now has the unpleasant task of writing a large refund check. This is never a good feeling for anyone.
In more than 15 years of experience, I have seen practices that focus on prepay programs that are in constant need of new patients because they need to keep selling programs of care. This also results in collections going up and down. Simply put, the prepay option is given as a payment option for the small percentage of people it aligns with.
Automated Payments: In order for any payment option to be successful, you must automate the way payments are being collected. I recommend using a compliant and secure system to store patient billing information that will automate payments. Whether the patient has chosen to pay per visit, to purchase additional services or products outside of the program of care, or has chosen a monthly payment, the payment must be automated to reduce the constant reminder of money.
When patients stop at the front desk and pull out their wallets every time they come in for care, it createsa new purchasing decision everysingle time.This makes patients question whether they should stop or continue care every single time as well. When you remove situations that cause patients to "think" about money, it will not only increase patient retention and care plan compliance, but it will also greatly increase your cash collections.
Financial Policies: When reviewing your financial policies with your patients, you should keep a matterof-fact tone. If you have a "poverty mentality," then when you talk to patients about money, you may come across as apologetic in your tone. You should train in this area until you're rock solid in your delivery.
When you check into a hotel do they ask you, "Would you like to leave a credit card for incidentals?" No, they absolutely do not. They say (in a matter-of-fact tone), "We require a credit card for incidentals." You hand over your card, they store the number, and you must sign a form authorizing any additional charges. Keep this scenario in mind when you're reviewing your financial policies in your office. You also should make sure you're using a compliant form when getting the patient's signature to authorize the automated payments. Review the scripting below on the best practices for communicating this to your patients.
• Monthly Payments: "Mary, because you chose a payment option that involves a monthly payment, we require a credit card that we will use to run your auto-debit payments on the same date each month." Then get the patient's signature authorizingthe payment schedule and billingtype, and store everything in the patient's file.
• One-time Payments: "Mary, I'd like to review our payment policy with you. Our practice uses a program that allows us to securely store your bank account information or credit card. We only process your payment with your authorization. Not only is this a more convenient option for our patients because they are able to check out faster, but their bill is always paid on time, without having to worry about it." Then get the patient's signature authorizing the payment for any balances due or specified amount and billing type.
Combining monthly payments along with automated payments sounds like a dream, doesn't it? It doesn't have to be a dream—it can be your reality! As CAs, we want to focus more on the patients, and we can do that when we streamline patient finances. It will free up your time and allow you to be able to focus on patient care, patient education, scheduling appointments, and the other hundred things you have to get done. You also get the added bonus of higher patient compliance and retention, as well as reducing those annoying patient recalls that take up so much of your valuable time.
Holly Jensen has served the chiropractic professi on for more than 15 years as a CA and office manager to Dr. Miles Bodzin, founder & CEO of Cash Practice Systems. For the past decade, she has served as the Director of Operations for Cash Practice Systems where she has trained thousands of DCs and CAs how to run a cash-based practice. Cash Practice Systems offers webbased software for chiropractors to implement afour-step process resulting in increased patient retention. The Wellness Score, Cash Plan Calculator, Auto-Debit System, and Drip-Education Email Marketing System all work together to help free a doctor from insurance dependence. For more information, visit www. CashPractice.com. Holly may be contacted at 877-343-8950 or Holly@CashPractice. com.
