February 2009

Patient Bankruptcy

“With the current financial challenges we are seeing an increase in the number of people filing for bankruptcy and this has to be a real concern for many businesses including Dental Practices.

A recent case we have come across concerns a Practice that was making a claim through the small claims court for unpaid treatment costs. As the case progressed the patient’s solicitor contacted the dentist. He said that his client (the patient) had filed for bankruptcy and so he was to cease badgering him for payment.

The dentist had never been informed that this was happening even though he was on the list of creditors.

This now leaves the dentist with the costs of the treatment that amounted to over £1500 (the cost of the implant crown, a porcelain crown and some restorations) with little chance of seeing any of this money. He was therefore about £2500 out of pocket.

The treatment was all carried out 3 weeks before the patient filed for bankruptcy and so probably knew that he was going to default on the payment for the treatment.

So how do you reduce the chances of this happening to you?
This dentist was really upset that a patient should do this to him but also that the Practice Manager had let a patient run up a bill without paying at each appointment. The reception team were also blamed as this patient was one that always had “forgotten his credit cards” and they should have had warning bells ringing loud and clear.

What can you do to prevent this?
You need to realise that a well-managed team who have been trained to look out for behaviour that may indicate a non-payer is invaluable. Good staff and their training may cost more in the short term but in the long run save money and your time chasing up non-payment.

Have a protocol for collection of fees on a visit-by-visit basis and advance payment for laboratory costs that no one team member can overrule – even the Dentist! “