Posted on 01-17-2011

Have you ever wondered why some dental practices have very little money in their Accounts Receivable while other practices have enough on the books to pay the National Debt? It’s all about ATTITUDE, specifically the dentist/owner’s attitude about money and their own fees.

Many dentists dislike answering fee questions from patients. They also feel guilty when it is time to increase their fees. If one or two patients complain about the fees, it seems like ten patients per day are complaining. Inadvertently, these negative money attitudes are passed on to the staff and patients. We know for a fact that Accounts Receivables are higher in a low fee office than in one with above average fees. Why? Because in the lower fee office someone, and in particular the dentist, thinks the fees are too high. Patients pick up on this Dr. Nice Gal and Dr. Nice Guy attitude and take advantage of it.

About thirty percent of all dentists are totally confident and comfortable with their above average fees. They know that the services they provide, the facilities in which they provide these services, their technology and staff are above average so why have just average fees? This confidence is also passed on to the staff and patients develop an attitude of gratitude about their care and therefore have no problem paying the presented fees.

Many dentists use the excuses "we practice in a rural setting" or "the economy in our town is really down these days" or "our patients need their money for holidays, back to school expenses" and the list goes on. The best excuse is "we always have a bad month of _____________, so we expect it". All of these excuses are coverups for the fact the money attitudes in this practice are unhealthy. Let’s face it, the economy is down, patients earning power has been compromised in some areas of the country and some areas of the country are not as affluent as others. Have you also noticed however that these same patients who can’t afford dentistry find money to eat out six times per week; buy new cars, trucks and motorcycles; and go to movies and tanning beds!

Accounts Receivable balances in dentistry were 2.0 to 2.5 times the monthly production 25 years ago. In the late 80s the A/R was considered healthy at 1.5 times the monthly production. With the introduction of credit card usage in dentistry this reduction of A/R started. By the early 90s dental finance companies began a new and even more exciting trend in A/R management. Now companies such as Care Credit, the profession’s leading "financial partner," can say with pride, "patients of all walks of life and at every income level can now enjoy their healthy, attractive smiles while they make comfortable monthly payments over time." Even in the most affluent areas of the country, if a financial partner is not part of the accounts receivable management the practice growth is limited by non accepted treatment plans because this is truly a "pay as we go" society.
I’ve personally seen practices increase by $15,000 to $30,000 per month (per dentist) when:

1. The dentist and team developed new financial communication skills as competence creates confidence.
2. Fees were based on the quality of the services rendered and everyone in the practice realized if skills, facility, lab technology, materials and staff were above average, it is OK to have above average fees.
3. Financial options were clearly outlined which included cash, check, credit card, or Care Credit.
4. The financial attitudes in the practice became positive which indicates to the patients the practice provides the highest quality of care in a very caring and professional manner but we also EXPECT to be paid.

The Author, Linda Miles Founder of Linda Miles and Associates of Virginia Beach, VA celebrates her 31st year of successful business and is one of dentistry’s "pioneers" of A/R management. Her newest book, Dynamic Dentistry covers this topic in detail as well as how the top 5% of dentists get to the top and stay there. Order on-line at www.DentalManagementU.com