Overwhelmed by accounts receivable? You’re not alone!
If you are burdened by the high amount of accounts receivable (A/R) your practice carries, you may sometimes feel more like a charity than a business. True, you went into dentistry to help people. However, high A/R can prevent you from providing the best quality care and leave you feeling personally and financially vulnerable. Furthermore, when a member of your team is constantly dealing with billing and insurance, rather than patient services, it can create an atmosphere of tension with your staff and even your patients.
At Dental Practice Enhancement, we can provide outside assistance with your accounts receivable. We can handle every step of the process. That way, you can focus on what you love – outstanding clinical care. Contact us today to learn more about our services and how they can benefit your practice.
Rising Average Accounts Receivable across the Country
Have your accounts receivable increased during recent years? If so, you’re part of a growing trend. In 2016, the average A/R for greater than 90 days was $47,736.21 – up from $41,111.14 in 2011. Accounts receivable less than 30 days have increased even more, rising from $20,794 in 2011 to $45,377 in 2016. Nonetheless, the A/R for 90 days is the most important figure. Dental business experts recommend that you know exactly what your accounts receivable is for the past 90 days. Even more important, you should know how this compares to your overall gross production.
How are high accounts receivable affecting your practice?
Some dentists are more comfortable carrying high amounts of A/R than others. Even so, experts recommend that practices have a 99% collection average over the course of one year. A lower percentage could significantly impact cash flow at your practice. In turn, this could limit your ability to repair and replace equipment and even make payroll. Other ways in which high A/R could affect your practice include:
- Collection costs: Each time you collect a bill, it involves printing costs, paper, postage, and additional expenses. Multiply this for every patient from whom you need to collect money, and you get a significant expense for your practice.
- Inflation: It’s no secret that inflation has reached historic levels. In 2021, the consumer price index rose 7%, the biggest gain since 1982. So how does this affect your practice? Not only have your treatment and office costs risen – the money you were owed 6 months ago is now worth less than it was when you sent out the bill!
- Wasted time and money for your staff: If your team is spending their working hours chasing down overdue accounts, it is likely frustrating for them. Plus, it’s costing you money! Think about all the other things they could be doing that would be more valuable: following up with patients, assisting with insurance questions, marketing for your practice. The list goes on and on….
Consider outsourcing your account collection
Working with a virtual assistant is an easy way to reduce accounts receivable, improve morale among your team, and put your practice back on a sound financial footing. At Dental Practice Enhancement, our virtual administrators focus exclusively on the needs of dental practices, especially billing and insurance. We will provide a consultation to discus the needs of your office. Afterwards, we can come up with a plan tailored specifically for you. From preparing statements to making collection calls, we can help you reduce accounts receivable and put your practice on the path to success.
Contact Dental Practice Enhancement Today
To learn more about our virtual administration services or to book a coaching session, contact us online today. You can also learn more about our virtual administration services when you call (833) DPE-FOR-U.
