In order to maximize your benefits and because plans differ from carrier to carrier, and from policy to policy, our office may refer you to your carrier or your employer’s benefits coordinator for assistance in understanding your plan. Please note that your dental plan is intended to cover some but not all dental care costs, and not all services are covered by your plan. You are responsible for payment of all services regardless of the payable benefit.
Checks that are returned to our office from your financial institution are subject to a $25 returned check fee. This fee covers the processing fees that are charged to our office. We would be happy to discuss our charges and how they relate to your particular situation.
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Patient Direct Pay Practices
Some dental practices are essentially all-cash operations, meaning that no outside or third-party method of payment, such as assignment of payment to the patient through a third-party benefit administrator, is accepted. Patients who have some type of dental benefits are responsible for filing claims on their own in order to receive reimbursement for the cost of dental care received. These patients may have a Health Savings Account (HSA) or Flexible Spending Account (FSA) which allows them to allocate pre-tax dollars to pay for certain healthcare expenses. Patients with these types of accounts typically pay for treatment directly and request documentation that they can submit in order to be reimbursed from the account. It is up to the patient to confirm that the care provided qualifies for reimbursement under the provisions of the Internal Revenue Service (IRS).
While every practice should follow the appropriate financial protocols, dentists who operate all-cash practices must make certain that their accounting procedures are well-documented, double-checked and beyond reproach. Not only is this a financial best practice, it’s also an effective way to protect your practice from possible embezzlement; all-cash practices sometimes lack the documentation and paper trail that’s created when claims are channeled through third-party payment mechanisms. This paper trail offers a certain, although limited, amount of protection against embezzlement.
While every practice should follow the appropriate financial protocols, dentists who operate all-cash practices must make certain that their accounting procedures are well-documented, double-checked and beyond reproach.
Most practices that accept cash payments request — and receive — payment in full at the time of treatment. This protocol often reduces the number of cancelled appointments since patients are already financially committed, recognize the benefits of their care, and recognize the link between their investment and their treatment.
Remember, cash in hand is ideal, but if there is recurring billing you should have a protocol in place that tracks collections daily, weekly and monthly, no exceptions. There are software programs today that can do that for you, but it’s important to understand how the software works so you can be certain that the proper accounting practices are being followed and that what you see in the books matches what your financial person tells you.
Consider offering a cash payment plan to patients who need extensive treatment and who have consistently paid their bills on time. This arrangement allows credit-worthy patients to pay for a portion of their dental work up front as a down payment; the typical amount is generally one-third to one-half of the total cost. It also ensures you can cover any fixed costs, such as lab bills and standard overhead, while simultaneously offering reliable patients a little latitude in paying for treatment. Under this arrangement, the patient makes several payments of a fixed amount on a regular schedule.
Consider offering a cash payment plan to patients who need extensive treatment and who have consistently paid their bills on time.
Discounts
Patients who pay up front occasionally expect a cash discount and many dentists are willing to extend that courtesy if the payment is made by cash or personal check. Carefully consider the loss of income that results from extending a courtesy for payments made by debit or charge card since the practice pays a processing fee to a third party. Dental practices that offer different discounts to different patients put themselves at higher risk for theft, fraud and embezzlement. This is because fraud can easily occur when the same person accepts and processes payments; it can be tempting for a dishonest employee to “skim” a little off the top and claim that the patient received a greater discount than was actually provided while pocketing the difference. More information on this can be found in the section of this module that discusses Risk Management and Fraud Prevention. The important thing to remember is that, if you decide to extend cash discounts, be careful, be consistent and have the appropriate systems of checks and balances in place in order to be properly protected.
Carefully consider the loss of income that results from extending a courtesy for payments made by debit or charge card since the practice pays a processing fee to a third party.
A good rule of thumb is to limit discounts, also known as accounting reductions. Dentists who offer discounts as an enticement so patients will accept and complete a treatment plan should be certain to outline all of the specific conditions for any discount in their financial policy. That written policy should include a detailed list of agreed upon accounting reductions, which often are limited to situations when the patient pays in full by cash or check on the day treatment starts. Review your accounting reductions as they occur by reviewing the end of day reports; reevaluate your accounting reduction policy regularly, preferably at least quarterly.
Every member of your staff should be aware of the practice’s written financial policy regarding accounting reductions. It’s a good idea to have all employees sign a statement that they’ve read, understand and agree to comply with the policy. Place a copy of that statement in each staff member’s personnel file. While it may seem tedious or unnecessary, this important precaution could protect you in the event that embezzlement occurs in your practice; having a signed document acknowledging awareness of the practice’s financial policy prevents employees from claiming that they “didn’t know” they were acting in a way that was not allowed.
Every member of your staff should be aware of the practice’s written financial policy regarding accounting reductions.
Keep in mind that the patient’s dental benefit plan should be informed of any fee adjustment through a separate paper claim or as an attachment to a reimbursement submission. Failure to notify the plan of any accounting reduction could be considered fraud, even though it may be no more than a simple oversight.
Keep in mind that any “income” realized through a barter transaction should be accounted for as taxable