Establish logical payment plans - Patient collections

Problem: Practices establish payment plans that don't make financial sense--many practices are too lax with their payoff deadlines.

Solution: Sure, offering payment plans to patients who can't pay their medical bills in full is a great alternative to collecting nothing. But instead of agreeing to accept a $10 monthly payment for a year or longer, strive for a three-month collection window.

When possible, set patients up to pay balances automatically via a credit or debit card, or help patients access an outside medical financing program. Note that this latter method helps you avoid handling sensitive financial information, which could eventually be subject to the Federal Trade Commission's Red Flags Rule, says Atlanta consultant Mike Fleischman.

Another best practice: Ask patients to agree to and sign a document that spells out your financial arrangement.

"Any time a person signs a document, they're more likely to remember," says  John W. McDaniel, president and CEO of Peak Performance Physicians, LLC, a New Orleans-based consultancy. A signed financial agreement or promissory note (as might be used with a payment plan) also represents a legal document should the practice consider pursuing balances in small claims court, he notes.

In addition, your practice should also offer patients the ability to see and pay their medical bills online.