According to research, about 95% of patients fail to pay their medical bills in full. As insurance companies increase the value of premiums, more users are finding it hard to keep up. When running an insurance-based chiropractic practice, you are likely to incur losses when patients don’t clear their bills.
You will also spend excessive resources following up on pending payments and processing refunds. The best way to address these issues is by running a cash chiropractic practice.
This measure will enable you to lower the expenses incurred when transacting with insurance companies. It can also reduce reporting requirements because you can update payments as patients make them.
If you are considering running a cash-based practice, you may wonder about the most effective way to do it. Here, we discuss five tips to help you increase efficiency and reduce costs in your clinic.
1. Set Up a Payment Policy
Running a cash chiropractic practice without proper payment policies will lower efficiency. For example, if you fail to manage your money well, the overhead costs will exceed the revenues.
Before switching to a cash-based system, you must create a straightforward payment plan. This way, you can simplify the billing process for your finance department and patients. Start by setting specific charges for each service that you provide.
After that, calculate the profit that you want to make while considering your overhead costs. With this information, determine how much you can make in a specific period and compare it against your expenses.
You may then gauge how much your current and targeted patients are willing to pay by conducting a market survey. Finally, set the final costs of services, communicate these to your patients, and update your accounting or payment software.
2. Simplify Adoption Using Technology
While running a cash-based practice has its benefits, manually billing your patients will waste time. This process may then slow down service delivery and lead to frustrations. Using innovative software designed for a cash chiropractic practice is the best way to avoid such problems.
With programs such as CHIROSPRING PAY, you can simplify the entire payment process. This platform comes with tools to help you bill your patients and process their payments. It also eases reconciling accounts by providing detailed financial databases.
By adopting such a solution, you can simplify the onboarding process for your staff and patients. Moreover, it will be easier to manage several clinics using the same software. Another benefit of using digital payment solutions in a cash-based practice is that they will speed up work.
Instead of patients calling to book appointments, they can log into the platform to schedule visits. Such features will help you avoid queues in the waiting room, enabling you to serve patients faster.
3. Educate Patients about the Value of Cash-Based Practices
If you previously accepted insurance in your practice, convincing patients to pay with cash may be tricky. However, explaining the benefits of such systems will help you negotiate.
Before switching to cash-based programs, you should inform your patients. You can do this by writing detailed newsletters explaining the reasons for the change. List the benefits that the patients will get by retaining your services.
Also, provide a clear comparison of insurance- and cash-based chiropractic practices to help them determine the value that they will get for the money spent.
Another effective way to convince your patients to embrace this change is by offering better deals. For example, establish a service package that enables them to pay less money in the long run. Such offers will help them realize the advantages of a cash chiropractic practice and boost retention.