Have you ever been to a restaurant, but at the end of the meal when you say “check please” they respond with, “I usually sit down at the end of the week and do my billing late one evening, when everyone else has gone to sleep.”
What would you say?
What would you think about that restaurant and its chances for long-term growth and prosperity?
That is the way, however, many Canadian physicians run their Medical Practice Businesses, with the obvious distinction that the payer is the Public System and we all know they’ll pay, eventually.
That said most companies in the world spend time, energy, and resources into making sure that every dollar of money owed to them comes in on time. The reason for this is simple, time is money, and money is time. That’s right, when money shows up on time, it gives you time.
How does this work?
It’s simple – every time that you have to go back and deal with an account (or encounter) from the past that isn’t paid it takes time and energy. Of course, each individual instance isn’t that big, but in general the average doctor is dealing with 5% to 10% of payments that late. In some specialties, this number goes up to 30% or more when the complexity of cases requires for frequent medical reviews and encounters sit in adjudication, sometimes for months.
Getting bills in faster, especially considering that the public payers in Canada only pay once a month means that you can shave 30-60 days off your Accounts Receivable. What could that mean to you? It could mean between $10,000 and $100,000 in additional one-time cash flow per doctor in your group!
Chasing this money that comes in late costs you and your team time, energy, and resources. Getting it right the first time, and getting it in faster can mean not only that you earn time back for your practice, but you’re getting paid to do it too by bringing in the cash more quickly.
If you’re not billing in Real time, you’re wasting money and you’re wasting time.