A Modern Approach to Dental Practice Collections

In today’s dental practices, there’s a common belief that you must choose between two competing priorities: maintaining strong patient relationships or reducing bad debt. But what if you could achieve both?

The Real Cost of Patient Retention

Let’s face it – patient retention is a significant challenge in dentistry. The numbers tell a sobering story: According to the American Dental Association, practices only retain about 41% of new patients, while existing patient retention hovers around 85%. This means nearly 6 out of 10 new patients won’t return after their initial visit.

When you consider that practices typically invest between $150-$300 to acquire each new patient – and that the average patient represents $700 in annual revenue with a lifetime value between $7,000-$10,000 – these retention numbers become even more significant. No wonder practices invest heavily in creating welcoming environments, from installing TVs in operatories to designing spa-like waiting rooms.

The Payment Problem Nobody Talks About

Here’s where things get interesting: As a patient’s balance ages, the likelihood of payment dramatically decreases. This isn’t because patients are trying to avoid payment – it’s because the traditional payment methods are surprisingly inconvenient:

Sending checks? Most patients can’t remember where their checkbook is (if they even have one)
Calling to provide credit card information? This requires calling during business hours and sharing sensitive information over the phone
Using online portals? These often require remembering login credentials and navigating complex interfaces

Add to this the fact that many patients prefer to wait until after their insurance processes claims (to avoid overpaying), and you’ve got a recipe for increasing bad debt.

Breaking Free from the Catch-22

Traditionally, practice consultants have advised collecting 100% of the estimated patient portion at the time of visit. While this addresses the bad debt problem, it can create friction in patient relationships – exactly what practices are trying to avoid.

But there’s a third way: making it remarkably easy for patients to pay when they’re ready.

The Solution: Modern Payment Technology

The key to bridging this gap lies in implementing a holistic billing strategy that leverages modern technology. Here’s what makes it work:

Prominent Payment Options: Adding QR codes and payment URLs to the top of every statement makes it immediately clear to patients that paying will be easy
Multi-Channel Communication: Automatically sending payment requests via text and email before the printed statement arrives creates a sense of urgency while providing multiple convenient payment options
Automated Reconciliation: Ensuring payments are automatically posted to patient ledgers saves significant administrative time

The Bottom Line

The best part? Implementing these modern payment solutions doesn’t have to be expensive or complex. With the right technology partner, practices can:

Maintain strong patient relationships
Reduce bad debt
Save administrative time
Keep processing fees low
Implement changes quickly without major infrastructure investments

By embracing modern payment technology, dental practices no longer must choose between patient satisfaction and financial health. They can have both.

Looking to modernize your practice’s payment system? Contact us to learn more about implementing patient-friendly payment solutions that help reduce bad debt while maintaining strong patient relationships.

A Modern Approach to Dental Practice Collections

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