It’s important to know how to use your collection KPIs once you have launched your collections policy. Review your key performance indicators (KPIs) on a regular basis. By keeping an eye on your trends, you will know if you need to adjust your policy or procedures. Here are some examples:
You discover your days sales outstanding (DSO) is more than 50 days. According to your policy, you are sending out two invoices during the first 45 days. You may want to adjust your policy by adding a reminder call between the invoices to help collect the balance sooner.
Continue reading Collection Policy, Part 5: How to Use Your Collection KPIs
When creating a collection policy, your goal is to create a published document that outlines the company’s collection procedures. It will include a variety of topics from setting up a patient record to processing a payment. Keep in mind, the purpose of the policy is to help establish the collection culture of your organization and define who will complete which tasks throughout the process.
To begin, pull out your current documents. These notes will help you outline what is commonly known as your “workflow.” Your workflow will detail what happens when you receive an order and follows a patient’s journey until their bill is paid. Our patient invoice flow chart will give you some ideas on what to include.
Continue reading Collection Policy, Part 2: Where do I start when creating a Collection Policy?