Absolutely, and here’s why you need a collection policy even if you have collection procedures. Your collection policy defines the mission and rules you want employees to follow to reach company goals. It guides employees on how to handle patient accounts and outlines your approach to balancing getting paid with customer satisfaction.
Policies will differ for each provider. For example, direct HME/DME providers may demand more credit cards captured upfront versus HME/DME providers receiving referrals or infusion providers, who are supporting end-of-life scenarios.
Collection procedures detail the patient invoice workflow starting with the referral and ending with the balance being paid in full or written off as a bad debt. When creating or reviewing your workflow, you and your team can have a healthy discussion on how to handle a patient’s balance throughout the process. Here are some questions to consider as you are outlining the workflow.
When responding to these questions, make certain your answers are clear, concise and easy to understand.
Before finalizing your policy and procedures, we recommend you ask your accountant to identify topics that may be unique to your business so they can be addressed.
Remember, these proactive steps will help improve your cash recovery. The time you spend on these documents will reap benefits for your organization.
Anne Orrick, COO, Allegiance Group
As seen in HME News, November 2018