October 2004
Vital steps to building a cash practice
by David Singer
Patients who drop out
of care after their insurance coverage runs dry is a common ailment for
doctors. The problem is, you haven't been taught how to turn a non‑paying
patient into a paying one. And because you don't realize that such patients
are components to a cash practice, you won't see the necessity of addressing
that problem to develop your practice.
Keep in mind that
sooner or later, insurance companies are going to stop paying for care. Then
you have to decide, are you going to lose these patients, or are you going
to turn them into patients who pay for care? Hopefully you decided to
develop the cash practice you already have started. But do you know how to
do it? Let me tell you how.
First, you have to
"plant the seed" to get your cash practice to grow. Explain to your patients
that insurance companies may pay for relief care, but they will not pay for
corrective or maintenance care ‑‑ even though it's needed ‑‑ so they will be
responsible for the costs of care. If you don't put this concept into their
minds at the start, your patients will only follow through with the care
that is paid for by insurance or Worker's Comp. After the last paid visit, I
can almost guarantee, they'll drop out and you won't see them again. Don't
let this happen to you!
If it is a PI case,
explain that when the case is settled and they receive a settlement, that
money should be set aside to pay for future health care costs. Advise them
to set aside 25‑50% of that money to pay for the future costs they will
incur.
Once you've put the
idea of paying for care into their minds, you need to nurture the concept
that people should and do pay cash for care. If you don't, people will never
pay for care. You will lose these patients unless you develop a cash
practice. But, you can't do that without the basic fundamentals. You have to
make the following decisions:
1. What treatment
plan are you going to recommend to your patients?
Write down the plan that you're going to recommend ‑‑ whether it's a relief
program or corrective care, if it includes therapy, etc. You also need to
determine what method you're going to use to measure patient progress, so
you can determine when the problem has been corrected.
Patients will want to
know how long you think it is going to take to complete the program. Give an
estimate of how many visits it could take to reach the point of maximum
correction. But, also tell them the plan could change because everyone is
different and will respond differently to treatment. Be honest. If they
trust you, they will trust in the treatment you recommend.
2. What type of
payment plan are you going to offer?
The goal is to get as many patients as you can to pre‑pay for care, rather
than paying visit‑by‑visit. If you make a person decide every time they come
in, whether or not they want to schedule again, they are more likely to drop
out of care ‑‑ there's no commitment. But, if they are scheduled and they
have already committed financially, they will continue receiving care.
3. What payment
options are you going to offer?
Obviously, everyone won't decide to pre‑pay. Some won't be able to pre‑pay.
You have to decide if you are going to offer patients different options ‑‑ a
plan for patients without insurance, or for families, where the first two
people pay the regular fees, but other family members receive care with 30%
off. Make sure your plan complies with the law in your state and that you
keep in mind one rule: Don't offer a patient a three‑month plan and give
them 12 months to pay it. You run the risk of not getting the money for
those treatments.
4. Decide what
incentive you are going to offer.
Without an incentive there isn't an advantage for a patient to pre‑pay. An
example of a successful incentive is offering your patients "a portion of
their care at no charge." Offer the last 10 visits at no charge, for
patients who pre‑pay for a year of care. Such an incentive will not only
encourage the patient to follow through care, but will also guarantee you
are getting paid for your services. However, you need to check with your
state association as to what would be considered a proper and legal
incentive for pre‑payment.
The reason for cash
plans is to translate that commitment into reality by having your patients
take the action step of paying for care. If you don't offer people the
chance to pay cash they never will. If you don't offer them payment options,
if they can only pay visit‑by‑visit, they won't commit to care as long as
they would if their plan was already paid for.
Present your patients
with a cash option, and you will not only increase your cash income, but
your patient retention and patient results will increase as well. If they
believe in the value of the service they receive, your patients will be
willing to pay for the high quality care that you deliver.
Building a cash
practice gives people the chance they need to get the care they deserve.
Ultimately, it is about helping more people get under chiropractic care than
you ever imagined was possible.
(Dr. David Singer is
CEO of David Singer Enterprises [DSE] ‑‑ visit online at
www.davidsingerenterprises.com ‑‑ a company offering an honest and ethical
approach to building a practice through one‑on‑one consulting programs,
products and practice expansion seminars. To receive "The Purpose Fax
Newsletter," Dr. Singer's free fax info letter containing practice‑building
tips and health research, call 800‑326‑1797, ext. 227. Leave your name,
address, phone number and fax number and you will be sent a form that
authorizes DSE to fax you a copy approximately every six weeks. Note: you
must have a dedicated fax line, as this fax newsletter is sent
automatically via computer.
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