Learn How to Fix the Problem with Better Systems.
Strong collections are not the result of aggressive billing; they are the outcome of well-designed systems, clear communication, and consistent accountability.
High-performing dental practices routinely achieve 98–100% of net production collected, maintain total accounts receivable (AR) under 1.5 months of production, and keep AR over 90 days below 10% of total AR, excluding orthodontic treatment. When collections fall short of these benchmarks, the issue is rarely patient resistance; it is usually a systems breakdown.
Start with Clear Financial Expectations
Effective collections begin before treatment is ever delivered. Every practice should have clear, written financial policies that outline payment expectations at the time of service. These policies should be reviewed with the patient and signed, not assumed. When expectations are clear, consistent, and transparent, patients are far more likely to comply.
An increasingly essential component of this policy is maintaining a credit card on file. With patient consent, the card may be charged for balances insurance does not cover—typically up to a defined limit, such as $100. This approach reduces small balances that quietly inflate AR and consume valuable staff time.
Accuracy Drives Cash Flow
Collections depend heavily on accuracy. Insurance verification must occur before the appointment, including confirmation of eligibility, benefits, limitations, and, critically, coordination of benefits (COB) when multiple plans are involved. Failure to confirm COB is a common cause of claim delays and reprocessing.
Equally important are accurate treatment estimates. When estimates reflect the correct fee schedule and anticipated insurance benefits, patients are far less likely to question balances later. When posting payments, teams should verify that the correct contracted fee schedule was applied to avoid adjustments.
Improve Chairside Communication and Handoffs
Effective collections are supported by effective clinical communication. When providers use clear, confident chairside language to address patients’ clinical concerns and explain recommended treatment, trust and case acceptance increase. Financial discussions should be limited to a general estimate based on office fees, along with the understanding that insurance may contribute. This approach reduces sticker shock, prepares patients for the next steps, and allows the administrative team to handle detailed financial arrangements.
Handoffs must be deliberate. Practices perform best when there is a clear division of roles: one designated person checks out patients with no diagnosed treatment, while a different, trained team member presents treatment plans, estimates, and financial arrangements. This structure reduces errors, streamlines checkout, and improves patient confidence.
Tighten Posting, Claims, and Follow-Up
Every day, providers should verify that treatment completed is accurately posted, typically by reviewing and initialing day sheets. Clean data in equals clean claims out.
Claims should be sent electronically daily, with no missing information or errors. One individual—not a group—should be assigned ownership of claim follow-up and AR aging. When responsibility is shared, accountability is lost.
Finally, schedule monthly meetings with the doctor. These meetings should focus on outstanding and unsubmitted claims, AR trends, and aging. Regular review prevents small issues from becoming chronic problems and often reveals breakdowns, such as incomplete handoffs, unclear clinical communication, or checkout inconsistencies. Identifying these patterns allows leadership to address them proactively in staff meetings and keep the team aligned.
The Bottom Line
Healthy collections are not accidental. They are built through clear policies, accurate systems, defined roles, and ongoing oversight. When these elements work together, practices improve cash flow, reduce stress, and deliver a better experience for both patients and the team, while consistently meeting industry benchmarks.
Your success is our success. Please reach out to us anytime.
Learn more, visit the Practice Support Team page, email us at PracticeSupportTeam@BurkhartDental.com, or call 1.800.665.5323.
Category: Practice Consulting
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