Increase Your Cash Flow in 10 Steps

Klas-Dental-Solutions-15-1024x473

These 10 ways to improve cash flow can help you encourage incoming payments, delay outlays of cash and stay on top of everything in between–like payments, late fees, and billing cycles.

  1. Invoice immediately.Don’t wait untilnext week or next month. If you wait to invoice your patients, they may think they can wait, too.
  2. Use electronic billing.It’s fast, and younger patients are likely to respond more quickly when they can pay instantly. Your deposits can be deposited directly to your account and everyone saves on the cost of paper and stamps.
  3. Get it in writing. Set clear payment terms and expectations. Spell out your terms on every invoice.
  4. Include a specific due date.“Due upon receipt” can be ambiguous, while “payment due within 30 days of the bill date” clearly communicates your expectations.
  5. Institute late fees.Without them, your patients may put off payment until a time that’s convenient for them but not for you.
  6. Offer positive incentives for early payment.Give patients a good reason to pay sooner than they normally would. An example might be 1-2 whitening syringes for payments received within two weeks of the bill date.
  7. Slow down on bills.Hold off on paying bills until they’re due. If you’re presented with a worthwhile incentive for early payment, by all means, take advantage of it. Try to pay electronically, you can schedule in advance and with precision.
  8. Periodic payments. Take advantage of periodic payment programs that are fee-free. For instance, small businesses withworkers’ compensation coverage can pay their premiums every time their payroll is run. Payments are based on actual payroll, eliminating the need for a large down payment, and carry no installment charges.
  9. Monitor your cash flow status on a weekly basis.Check off what’s been paid, what’s coming due and what’s late. Send reminder notices as necessary, and don’t forget to tack on your late fee.Continually measure cash flow to your BEP.

10.Get a CPA that is dental specific. A CPA can help guide you toward your financial goals and offer corrective action should you begin to veer off course. Taxes, of course, are part of the equation and ever-changing, making the aid of a professional essential. A dental specific CPA can help ensure you’re taking best advantage of the deductions that can benefit your dental business and help improve your cash flow.

#KLASSolutions #Cashflow #CPA #Monitors #BreakEvenPoint #Workerscompensation #dental #dentist

Amalgam Seperation-Anterior Quest

Nate Koster – Anterior Quest

Nate Koster is with Anterior Quest, the only 100% amalgam containment system in the US. I talked with him about practices we are working with that are preparing to retire in 5-7 years. We recommend doctors should always look at this system, however what happens when they retire? This is a regulatory item registered in the doctors name. He found the information I was requesting. Here is his response to me.

Phil, I was going through the amalgam rule today and came across this section… It just talks about the specifics of what to do when switching ownership of a dental practice. Thought it might be useful to you…

https://www.federalregister.gov/d/2017-12338/p-158

Anterior Quest and Nate Koster work hand in hand with the EPA. Their knowledge of amalgam separation is second to none. I give all of my clients this information when doing a Practice Assessment. KLAS Solutions strives to give you all the information needed for a successful practice. Contact me with any question at phil@klassolutions.com

#AnteriorQuest, #KLASSolutions, #amalgacontainment, #dentalpractice, #dentalconsulting, #PhilCole, #NateKoster –

PPO or Not to PPO….that is the question

After assessing numerous practices, one of the first questions I’m asked is “Should I stay in network with the insurance companies.” There is not a simple yes or no answer. There are three options. Fee for Service….no participation with any insurance company; In network with all insurance companies (PPO’s) or Partial enrollment. As some of the insurance companies are lowering their reimbursement which will affect your bottom line, it will be necessary to seriously consider your options. 

Fee for Service: Full fee and full payment. No write-offs and no negotiating. Patients come to see you, you diagnose, patients decide on treatment and you get paid 100% of fees charged. Sounds ideal but there are factors that must be taken into consideration. Your location, your competition, your patient base, patient demographics, timing, your fees and your vision for the practice,

PPO – sign up with every PPO….work twice as hard for half the money, use double the supplies and double the time in sterilization because you have to see double the patients just to meet your goals. Creates a chaotic atmosphere not to mention the lousy taste it leaves in your mouth. Pun intended. 

You can decide on ‘Partial participation’ with the insurance companies that have reasonable reimbursement. 

So how do you decide and where do you start? Know your numbers and know the demographics of your patient base. If you don’t know how to do it or what to assess, get someone to help you. I recently completed a ‘virtual assessment’ for a dentist who wants to drop a major insurance company that he felt “75% of my patients have”. 

After I completed his virtual assessment we were able to determine the true percentage of patients with the various insurance companies he was in network with. We also created a plan for when his practice can support dropping the major insurance company!! (who is once again lowering their reimbursement to the dentist!) Through the assessment, I determined there was major problems with their computer recare system, their TRUE active patient base along with other issues that would ‘kill’ their practice if he just dropped it. However, we were able to put a plan together to slowly drop the PPO’s over a certain amount of time so that it would not financially impact his practice or the patient base. This was a dream come true as he has not felt good about going to work for a long time…it wasn’t fun and he had lost his passion for dentistry. Teaching the administrative team effective scheduling techniques allowed the practice to limit the write-offs on a daily basis. Over time, this adds up to thousands of dollars. Through my assessment, I was able to look at the significant discounts, write-offs, freebies, family rates and adjustments given to the ‘fee for service’ patients that was also making a significant impact on the bottom line. 

Do your due diligence…know what you can do today to make an impact and have a plan to eliminate over time. 95% of the dental practices I work with complain about the write-offs, the PPO’s etc. but no one is doing anything to rectify the situation. It all starts with a plan. Stop complaining about all your write-offs and adjustments and take your practice back.

Nancy completes virtual and ‘on-site’ practice assessments to address your specific concerns about insurance participation, internal team stress, leadership concerns, incentives, policies, hygiene programs/liability, treatment coordinating, productive scheduling vs. a busy schedule, communication within the team and any other concerns you may have. You have to assess your patients in order to provide a short and long term treatment plan. Why aren’t you assessing your practice to have a short and long term business plan for the practice? Email us your concerns and do something about it. nancy@Klassolutions.com or info@klassolutions.com

#KLASSolutions #PPO #insurances #DeltaDental #Assessment #Dentist #dentalpractice #FeeforService

Insurance Negotiation

Many #corporate #practices rely heavily on #managed #care to operate at a high capacity.  Many of these corporations have been able to negotiate higher #reimbursement rates allowing for a #fee advantage to the #solo #practices.  Contact us on our #Insurance Maximization Plan and see how your solo practice can get the same fees. 844-552-7100 or info@klassolutions.com