Great Tool for Collecting Money
As chiropractors we work hard. We’ve got this nice office, we’ve got a well-trained team, we’ve got good marketing, we bring patients in, we render great chiropractic care, and we do it as a reasonable fee. I mean it’s an absolute crime to leave money in the AR, in the accounts receivable, and not collect it.
I’m going to introduce you to a tool today that I call the dirty dozen. It’ll help you identify which accounts need work, what to do with those accounts and how to collect the extra money that you’re looking for.
I love this tool and I call it the dirty dozen and you’ll see why in just a minute. I developed it while driving between my different offices and taking a look at my accounts receivable with my account CA’s because we worked hard to produce all those services and we wanted to make sure that we were collecting everything that was due to us.
So, here’s what we would do. We would sit down with an AR. We would go through and find the 12 worst accounts. Now, why did I pick the number 12? It was a manageable number and so we would focus on 12 accounts. We would build skills on 12 accounts. We would work on our bad accounts 12 at a time.
Then, I would make specific assignments: re-bill this, call this, get in tough with this particular attorney and then I would instruct them to give me daily reports. So, here’s what would happen. Two days later I’d get a phone call, “Dr. Lloyd I took care of 2 accounts. I’m done to 10. Great, now add the next 2 dirty accounts.”
They were always working with 12 and some days I would get a phone call when there were 6 or even 7 of those accounts that had been resolved over the last 48 hours. So, we would add another 6 or 7 accounts to the 12.
Now, here’s one of the things that we would learn. We learned the mistakes that we were making that allowed the accounts to get dirty in the first place and we went back and adjusted our procedures.
I got to the point where I was driving to my offices and I would sit down with my account CA and I hardly had to ask any questions. They knew the reports, they knew the drill, and they could teach me where the money was, teach me what the problems were, and teach me what they were doing to collect the money. It was just great!
In fact, one young woman I sat with, “Dr. Lloyd I’m so sorry. I only have 3 dirty accounts.” The thing about that office is that office was collecting 97% of collectible money and we brought that up by 10%.
Using the dirty dozen you can go back in and you can find where the bad accounts are, make your corrections, increase the amount of money so that the work that you’re doing is properly rewarded.
This is Dr. Noel Lloyd for Five Star Management and I know that works.