Dealing With a Difficult Provider Part 2

It may come as a surprise to the beginning medical billing service but many providers do not pay their own bills on time. This can be a huge problem. The new medical billing service generally waits several months before they are even able to find, start working for, and bill a new client. You have invested time and money into getting this account started. You anxiously await the first payment to see your efforts come to fruition. Each day you go to the mailbox watching for that illusive check. What should you do when it doesn’t come?

Some doctors are great about paying. Some send the check as soon as they receive their bill. They appreciate the work you do and show it by paying you on time. You will quickly learn that the ones who are not willing to pay on time do not appreciate your work and will give you all sorts of excuses for not paying on time.

As you grow, the problem can grow too. You need to set up policies early to know what to do or you will spend a lot of time worrying about getting paid and how you are going to collect it. We send our bills to our doctors on the first of the month and payment is due by the tenth. We send friendly reminder notices on the twentieth of the month. If the bill is not paid by the first of the next month, we add a finance charge to the next bill.

If a client goes two months without paying, they definitely need a phone call. You need to try to keep your emotions out of the call even if you can’t pay the rent until you get paid. You need to ask if there is a problem with your bill and when can you expect payment. We ask our clients who are slow payers if they are willing to let us put their payments on a credit card. We have many providers who are thrilled to pay this way. They get points on their credit cards and don’t have to remember to write a check. Although it costs us a little, we can depend on getting paid on time.

We also have a policy that if a client goes three months without paying they get a letter from us stating that we have to cancel our contract if we do not receive payment within ten days. It’s a good idea to not let things go this far, but unfortunately it happens. At any rate make sure you decide how you are going to handle this type of problem and put a system in place.


One Response to “Dealing With a Difficult Provider Part 2”

  1. Charlene Hargrove Says:

    I NEVER allow them to go over 45 days past due. I invoice them on the 1sth, they incur a late fee after 5 days, and on the 11th day, their billing services have ceased. The more rope you give a provider the more likely they will use it to hang you!!. Some people worry about cutting off the hand that feeds you, but if they haven’t put food in your mouth after 45 days, what makes you think they will after 90? Just as a provider pays his lease, lights, staff, and other bills, so must he/she pay his or her billing company. Never be afraid to notify the provider his or services will terminate if no payment is received. You will then go from the “home biller” to the professional billing service overnight. If you feel you will lose that contract, dear you have already lost when you go 90 days with no pay. You have lost your respect, and income. I would rather lose a month of billing, than put in 90 days and still not get paid!!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s