Ways for therapists to get paid on time

Introduction

Managing in-person and online payments is an extremely important aspect of operating a healthcare business successfully. Given the complexity of the payment system and the time it takes for reimbursements to be processed, it is pertinent that clients submit their payments promptly. Unfortunately, however, this isn’t always the case. Patients lead busy lives and payments can be forgotten, missed, or left unpaid for months. To help minimize the risk of these occurrences, we have done some research and formulated some of the best ways that your healthcare practice can streamline payments and ensure your business operations run as smoothly as possible. 

Reasons why clients do not pay on time

Before we get into some of the different strategies that can improve cash flow and timely payments within a healthcare practice, it is first necessary to examine some of the reasons why clients don’t pay on time. Having a proper understanding of the factors contributing to late or missed payments can help your practice find the most effective solution. Whilst this is not a comprehensive list of every single reason why payments aren’t made on time, you will generally find these issues are the most common contributing factors. 

The client is busy: Clients typically lead just as busy lives as therapists, and there is a high chance they simply forgot to make the payment. Having long to-do lists can make prioritizing payments difficult, and, as I’m sure you well know, having a full schedule can often lead to forgetting important tasks.

The client has a dispute: If a client has a genuine dispute with the service or billing amount, they may deliberately decide not to make the payment. Following up on these early is a good idea, as is ensuring you have effective and transparent communication with your clients regarding payment. 

The client has financial issues: Late or missed payments can also be caused by the client not having enough money. While these situations can be tricky to deal with, alternative payment plans and arrangements should be put in place to alleviate stress from the client whilst still guaranteeing you are reimbursed. 

10 ways to get therapy clients to pay on time

Fortunately, regardless of the reason behind a late payment, numerous solutions can help resolve the issue and minimize the risk of it happening again in the future. We understand that different healthcare practices will have their own preferred methods of managing late payments, but we have compiled a list of 8 ways you can get your clients to pay on time. 

Create a payment policy

Transparency regarding payments is one of the most crucial aspects of having a good client-therapist relationship. You need to be clear from the start about what is and isn’t acceptable regarding payments, and communicate this to your clients from the get-go. Additionally, it is extremely important that staff members, both clinical and administrative, have an in-depth understanding of the payment policy and how it impacts both them and their clients.

Accept the payment at the start or end of each session

Whilst this is a solution that may not work for everyone, it is a good idea to let clients know they can make their payment at the time of their session. It goes without saying that the longer the period between session and payment, the more likely it is that the client will forget. To avoid this occurring, you can encourage your clients to make their payments when they attend their sessions. 

Set up auto-payments for therapy clients

As an increased number of healthcare processes are becoming automated, new systems and methods are being introduced that make things easier for both clients and therapists. Dealing with stacks of bills is an incredibly time-consuming and stressful task that can be alleviated by implementing auto-payments. Automated payments can be customized to the client’s needs, ensuring that they are manageable and also time-efficient.  

Add your payment terms in the patient intake forms

If you are struggling to effectively communicate payment terms to patients, it could be a good idea to add these policies to the intake forms. As you know, patients are required to fill in the intake forms before an appointment at a healthcare clinic, meaning that they are read by every single client. Including the payment terms on these forms will guarantee that patients are aware of their responsibilities, with the additional advantage of improving effective communication. 

Offer incentives for early payers

Incentivizing early payment is one of the most effective ways to elevate the cash flow in your practice. By including a discount on pre-payments, patients are encouraged to pay for your services early, eliminating the need to worry about following up on late or missed payments.

Send an invoice quickly

Sending out prompt invoices is a fantastic business strategy, regardless of whether you require payments in full or work with insurance companies. Ensuring that the patient still has the session in mind when they receive the invoice will encourage more timely payments. Additionally, prompt invoicing reduces the likelihood of your business having stacks of invoices that they need to process. 

Accept multiple payment options

Acknowledging the fact that patients have different payment preferences will not only encourage them to pay in a more timely manner but will also improve client satisfaction. In addition to the traditional method of paying at the clinic, you should also offer over-the-phone and online payments. Clients will have the flexibility to choose what option best suits their needs, without having to be inconvenienced in any way. 

Consider having a payment plan for late-paying clients

Often, healthcare clinics will find that they have repeat offenders when it comes to late payments. Learning how to deal with these patients can be tricky, but we suggest implementing a payment plan. This plan can be personalized to the individual, helping to ensure that they aren’t overwhelmed or frustrated but still guaranteeing you get paid. 

Consider accepting installment payments

At the end of the day, people go through financial difficulties and these are often impossible to prepare for. Whilst getting paid in full is the desirable option, this isn’t always possible for some patients. Giving those who require it the ability to make their payments in installments will alleviate some stress and ensure you still get paid. 

Be willing to negotiate with clients

Whilst receiving payments is a high priority of operating a therapy business, it is equally important to have good relationships with clients, and learning how to negotiate can be a helpful solution. If you have a client who is months late in making their payments, get in touch with them and discuss their options. You might find that organizing a solution, like an installment plan or discount, improves your relationship and encourages them to better manage their finances. 

Conclusion

Managing late payments can be awkward, but it is a necessary element of working in healthcare. As you can see, there are thankfully different options available to help you ensure payments are made promptly, whilst still prioritizing good therapist-client relationships. We mentioned previously that automating payments and offering different payment options is a highly effective way of encouraging patients to pay on time. If you are interested in looking into these solutions, we recommend checking out Carepatron; a fully integrated platform that can help you streamline your payment process and ensure you get paid on time!

Try Carepatron for free today, and get paid on time, everytime!