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Getting tough on deadbeat clients May 11, 2008

Posted by Dentist.Com in Practice Management.
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Transworld Systems

Paul Donadio is 6 feet 4 inches tall, 230 pounds and all Italian. “I don’t carry a baseball bat, but I definitely fit the role for this business,” he jokes.

As district manager for the collection agency Transworld Systems, Donadio knows as much as anyone about overdue dental bills. He told a recent audience at the Yankee Dental Congress that such debt is a growing problem, but that most dentists could collect more than they do.

As health and dental insurance costs have increased, the portion of these bills paid out of pocket is now 35 percent, three times higher than in 1980, says Donadio.

But out of 20 high-priority bills an average person must pay, the dental bill ranks 17. “People are far more likely to pay their cable, cellular, and legal bills,” says Donadio. “But at least they’ll pay your bill over the vet bill.”

Unfortunately, Donadio says, the average recovery rate for medical and dental bills is 10.8 percent. “It’s a pretty high failure rate.”

Why are dentists so low on the priority list? “They think you’re rich and don’t need the money.”

Many dentists don’t threaten to collect unpaid bills for fear of alienating patients, but the more reluctant they are to collect, the more money they leave on the table.

Debt depreciates a half a percent less for each day you don’t collect, Donadio says.

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