Buy Now, Pay Later and Later and Later ...
The Wall Street Journal ran an article discussing personal bankruptcies. Credit cards get a lot of the blame for people’s money problems. Are there any lessons here for your business office?
First, the good news. People are using credit cards more and more for all kinds of purchases. Many grocery stores now accept Visa and Master Card. Even laggard American Express can be used to buy groceries in some stores.
People use their card in many situations, which required cash or a check in the past. In a word, credit cards have become ubiquitous. People are comfortable pulling them out and the card companies encourage their use. Many cards have programs which award points for purchases. The points are used to pay for gas, vacations and even automobiles.
The good news for you is that it should be easy to convince people to pay their medical bills at the point of sale, your office. There should be no qualms on your part about asking for payment. If the patient says they have no cash or checkbook, ask them if they have a credit card. Many people have at least one of the four major cards. There may be reluctance on their part to offer the card to pay their medical bill, but if you don’t ask, you don’t get. Don’t hesitate to ask if a spouse or a relative will pay the bill with their card.
Now the bad news. People’s heavy use of credit cards is playing havoc with finances. The WSJ article said that “sudden bankruptcies” are increasing tremendously. You may have seen more notices coming in the mail. Our society used to discourage people taking bankruptcy as a way out of their financial problems, but at present it’s considered an acceptable alternative.
Now the really bad news. Since people’s finances are in such turmoil, it’s going to be more difficult for you to collect on these payment promises people have made. If you don’t get the money up front, you may not get it at all. People will ignore your statements. You will have to work harder for each dollar you get. It’s going to be survival of the fittest when it comes to collecting from your patients. Remember, there are other bills out there waiting to be paid.
Is your collection department up to speed? What are your minimum payment policies? Don’t wait for the bankruptcy notices to arrive. We have some specific ideals that can help you.
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