How to Collect Payments on Medical Bills
No one likes to deal with collecting payments on medical bills. It's stressful on both the person who owes the money, as well as the person trying to collect payment. Most people cannot pay expensive medical bills all at once. Odds are that you'll have to go after payment, and that means you'll have to find ways to collect.
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Things You'll Need
- Patient file containing contact information
- Medical practice stationary
Instructions
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Collecting Payment on Medical Bills
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1
Confirm that all of the information in the client file is accurate. Go through it carefully before initiating contact with the client.
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2
Send an invoice with a "Past Due" notice attached. If you are sending out a second notice, enclose a gentle reminder as to what the patient owes and ask them to contact you for payment options. Always use your medical practice stationary, rather than just a plain envelope.
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3
Telephone the client. Try to keep the conversation as pleasant and non-confrontational as possible. Remind the client why they owe the money, and explain to them that you are willing to work on a repayment plan.
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4
If payment is still not received, initiate action through the legal system. Depending upon the money that is owed, you will either be in Small Claims Court or in Superior Court. If it is in Small Claims Court, you can present the case yourself, but if it is in Superior Court, you will need an attorney to present the case.
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Tips & Warnings
Keep a copy of all correspondence relating to the payment collection attempt. If you send any correspondence, always send it through the post office via registered mail.
Setting up payment plans at the beginning of the debt will improve your chances for successful payment collection.
Keep in mind that many people are embarrassed over not being able to pay a debt owed. Be sympathetic to the situation, but remain firm.
Remain calm and polite when dealing with the client. Losing your temper can result in harassment charges being filed against you, making it more difficult to collect payment on the medical bill in the future.
For most medical debts, there is a statute of limitations. Depending upon the state, the period of time can vary from five to 10 years. Check with your local State's Attorney General to determine the statute of limitations for your state.
