Hey there, friends! Today, I want to dive into a critical topic for dental practices—how to increase your cash flow. The reason I’m bringing this up is that I’ve had my fourth call this year from a dental practice where the doctor isn’t getting paid. Just last week, I got a call from a doctor’s wife. She was at home, juggling four kids, and trying to help with the practice accounts receivable because they were struggling so much that her husband wasn’t going to receive a paycheck. It’s a situation that no practice owner should ever be in. The person who’s dedicated their life to caring for patients shouldn’t be the one left without pay. It’s simply unacceptable.
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If you’re facing something similar or want to avoid this situation altogether, I urge you to take some notes today. I’m also offering a free tip sheet that you can download and share with your team. It’s crucial to get your accounts receivable in order and start collecting what you produce.
The main problem I’ve been seeing is that these practices aren’t collecting payments effectively, and their accounts receivable is out of control. So today, I’m sharing my top three strategies to help you increase your cash flow and avoid these kinds of financial crises.
Collect Payment on the Day of Service
The first and most important step is to collect payment on the day of service. This is the simplest and most effective way to ensure you’re getting paid for the work you do. But how do you make this happen? It starts with clear communication with your patients.
When a patient schedules an appointment—whether it’s for treatment or a routine hygiene visit—they need to know upfront what their out-of-pocket cost will be. This allows them to budget and be prepared to pay on the day of service. Back when I was working in a practice, no patient got on my schedule unless they had a financial arrangement in place. This approach isn’t just about securing payment—it’s about respecting your patient’s budget and making sure they can manage their financial obligations.
Once you’ve determined the patient’s portion, make sure this information is communicated to your entire team. Everyone should know what the patient owes so that when they check out, there’s no confusion. It’s critical that the team learn how to ask for payment and everyone on the team knows how to use the credit card machine.
During your morning huddle, review which patients owe money that day. Your money is worth more today than it will be 30 days from now, so don’t let it slip through the cracks. It’s as simple as asking, and you’ll find that most patients are more than willing to pay when they know what to expect.
Send Billing Statements Daily
The second strategy to improve your cash flow is to send billing statements on a daily basis. I know many practices are used to sending statements monthly, but this approach is outdated and can hurt your cash flow. Sending statements daily spreads out the workload and ensures that no patient goes too long without being informed about the status of their account.
If you’re only sending statements monthly, there’s a good chance that some patients might not even see their bill for six or seven weeks. That’s way too long. By sending statements daily, you keep the lines of communication open and make it easier for patients to stay on top of their payments.
Moreover, daily statements help even out the flow of incoming payments and reduce the number of patient calls you receive after a big monthly statement drop. This makes managing your accounts receivable smoother and more predictable.
Submit Claims and Attachments Electronically
Lastly, make sure all your insurance claims and attachments are submitted electronically. This is crucial for getting paid quickly—ideally within 30 days of the submission. When you submit claims electronically, you receive a tracking number, just like when you send a package through UPS or FedEx. This tracking number allows you to follow up if something goes wrong, ensuring nothing gets lost in the process.
It’s also important to avoid any handwritten notes or physical attachments like x-rays sent by mail. These can delay processing and even cause your claim to be discarded. Everything should be digital, allowing for faster, more efficient processing and quicker payment.
To wrap it up, the top three ways to boost your cash flow are: 1) collect payments on the day of service, 2) send daily billing statements, and 3) submit all insurance claims and attachments electronically. These strategies will help you maintain a healthy, thriving practice where the doctor can focus on treating patients—not worrying about their next paycheck. Download my free tip sheet for more details, and start implementing these changes today!
