Practice Management Alert

Collections Corner:

It Pays More to Be Nice

Aggressive behavior can actually reduce the amount you collect

Warning: While it may seem more effective to get pushy on the phone, the truth is that aggression can hurt your collection efforts and put you at risk for harassment allegations.
 
"You have to be careful how you treat a patient," says Adrienne Rabinowitz, CPC, billing manager at Western Monmouth Orthopedic Associates in Freehold, N.J. As a medical practice, you're in the people business, and you should try to be "as professional as possible" when dealing with patients who owe money, she says. That means being courteous even when patients get nasty -- which isn't always easy to do.

Why bother? First of all, it's good business to keep communication lines open with patients and to remain as approachable as possible. You'll end up scaring away repeat business and damaging your reputation in the community if you always get ugly about collections, Rabinowitz says. And, you risk accusations of harassment if you're pushy and aggressive.

Remember: The patient could always be taping your phone call and just waiting for you to say something inappropriate, Rabinowitz says. And once harassment allegations are out there, you can forget about collecting your money, she adds.

Be a good listener: When you call about an unpaid bill, keep in mind that people are often dealing with illness, injury, or even death in the family, says Vincent Gaudio, principal of Collexx Inc., a collections agency in Long Valley, N.J. "Expressing compassion for someone's situation is always going to put you in a better position than putting him on the defensive" with aggressive tactics, he says. A lot of times people really want to pay but have just been busy and burdened with other obligations, Rabinowitz adds. Never assume a patient is intentionally not paying you until you've taken the time to listen.

Walking a thin line: While you have to be polite and understanding, you also don't want to get strung along and walked all over. The hardest part of collections is finding the professional balance of understanding and firmness. Stay smart and alert during calls about unpaid bills, Rabinowitz says. Don't make the mistake of being so nice that people take advantage of you.

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