30% of patients with outstanding balances never receive a billing conversation from the office.
They do not receive a call. They do not receive a statement. They do not receive a text.
The office assumes they will pay. Patient assumes the office will contact them. Neither happens. Balance ages.
Why Offices Avoid Billing Conversations
Staff are uncomfortable asking for money. It feels aggressive.
Staff are busy. Billing feels low-priority.
No system. Balances are tracked in charts but not called out.
Staff do not know how to handle objections. They avoid the conversation.
The Revenue Impact
Average outstanding balance per patient: $200-500
For a practice with 100 patients with outstanding balances: $20,000-50,000 in AR
When these patients never receive a billing call:
- 30% will not pay (AR ages indefinitely)
- 50% will pay when called (need reminder)
- 20% will negotiate payment plan (need conversation)
Not calling 30 patients = $6,000-15,000 in lost collections monthly.
Annually: $72,000-180,000 in uncollected revenue.
The Reach Solution
Dedicated remote team member manages soft collections.
Soft collections = respectful, friendly billing conversations. Not aggressive debt collection.
Workflow:
Monday: Get list of patients with 30+ day overdue balances.
Tuesday-Friday: Call each patient. “Hi! I am calling about your account. You have an outstanding balance of $300 from your April appointment. Can we get that taken care of today?”
Patient response:
- 50% pay immediately. (Credit card or check in mail.)
- 30% say “I forgot” and pay right away once reminded.
- 15% request payment plan. (Set up plan for $50/month.)
- 5% say they cannot pay. (Note account. Follow up in 30 days.)
The Numbers
Soft collections effectiveness: 80-90% of contacted patients pay or set up payment plan.
If you have 100 overdue patients:
- 80-90 will pay or commit to payment plan immediately
- 10-20 will decline or request follow-up later
Collections improvement: 50-60% increase in collected AR from proper follow-up.
Practice AR: $30,000 overdue
Collected from soft collections: $15,000-18,000 (50-60% of total)
Cost: One remote team member doing soft collections: $1,200 monthly = $14,400 annually
Net benefit: $15,000-18,000 recovered in first month alone, then sustained monthly
Why This Works
Personal contact = Accountability. Patient remembers they owe money.
Respectful approach = Willingness to pay. Patient does not feel attacked.
Immediate options = Ease of payment. Patient can pay right then or set plan.
Persistence = Results. Second call to non-payers increases collection rate 30%+.
Implementation
Step 1: Generate list of 30+ day overdue balances weekly
Step 2: Reach team member calls patient
Step 3: Collect payment or establish plan
Step 4: Note outcome in account
Step 5: Follow-up calls to payment-plan patients
FAQ
**Q: Is soft collections the same as debt collection?**
A: No. Soft collections is friendly, respectful billing. Debt collection is aggressive pursuit of old debts.
**Q: How many patients can one person call daily?**
A: 20-30 calls daily. About 3-4 hours of work.
**Q: What if patient gets angry?**
A: Most do not. But if they do, acknowledge their frustration and offer options: “I understand. Would a payment plan work better?”
**Q: Should I use a debt collector?**
A: No. Debt collectors harm patient relationships. Soft collections maintains relationships while collecting.
**Q: What is an acceptable DSO for patient balances?**
A: Below 30 days is excellent. 30-45 days is acceptable. Above 60 days indicates collection issues.