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Are Installment Plans Right for Your Practice?

For many clients, costly or even modestly priced medical procedures prove prohibitively expensive. Often patients delay critical dental or medical work for either inability to pay upfront or apprehension about what their financial responsibilities will be. So how can you get more patients in the door and on to healthier lives, all while boosting your practice? As with selling cars or sofas, some health care and dental providers offer installment options to stay competitive and reach more clients. Installment plans enable and incentivize patients to seek treatment who might otherwise delay or forego care.

Payment Plans incur a Cost

Is offering your patients payment plans the right option for you? Well, that depends on many factors including your client demographic as well as the level of risk aversion of your practice. Offering a payment plan will incur some losses if clients default on payments.

Additionally, you face administrative costs associated with tracking and following up on scheduled payments. Utilizing a healthcare payment solution with easy payment processing like Moolah, along with QuickBooks integration will reduce administrative expenses. Still, some minimal cost always remains. Also to consider, payment plans without any surcharge built-in can cost your practice, as you are essentially loaning the client money at zero percent interest.

As for collecting payments, whether or not the patient ultimately pays is largely beyond your control. If you do opt to offer payment plans, some simple strategies can help mitigate risk and avoid future headaches. It all focuses on better communication with your client.

Establish a Payment Policy

Any installment plan ought to include a concrete payment policy. The policy should clearly outline payment details. Include when and in what manner clients must submit payments. Additionally, the policy ought to specify late penalties, if any. Your clients will be more inclined to pay if you communicate clear expectations.

Provide Simple Payment Solutions

Enabling automatic payments offers one of the simplest solutions for both you and the client. Automated payments are not subject to the client’s forgetfulness and it reduces staff time required to process payments. Moolah makes it easy to not only process automatic digital payments but also includes connectivity with useful apps such as invoicing solutions and CRMs, making managing patient relationships easier. It’s all part of offering the best healthcare payment solution to your client.

Remain Positive

Your practice relies not only on the high level of care you provide but also on the relationships you develop with your patients. Offering installment plans can communicate trust and empathy toward your client. Cultivating mutual respect incentivizes your patient to seek out your care and pay for services.

Whether or not installment plans are right for your business depends on many factors. If you are willing to incur a bit of risk, and depending on your local circumstances, offering installment plans can be a beneficial tool to bolster your practice, and help more people.