Author Topic: Late Fee's for Clients?? (Read 3838 times)

PTBILLER · « **on:** February 22, 2009, 01:31:12 PM »

Hi Michelle-

I have my own billing service and send out invoices to my clients on the first day of the month. It is very clear in my contract as well as on the statement that payment is due by the 10th of each month. I've experienced (several times) late payments. Do you use late fees? Hold their claims? I try to keep an excellent relationship obviously with my clients, but this is so annoying! I have bills too!! Any suggestions?

Alice Scott · « **Reply #1 on:** February 22, 2009, 05:06:43 PM »

I think we all run into this problem. Some providers just do not pay on time. We have had a very few who never paid us. We ended up sending two to collections but never collected anything. It's very difficult to collect out of state. I've always hated to endanger a relationship by adding late fees but have found some providers don't mind the late fees. They just don't want to pay when it is due. Many doctors are not good businessmen. We now call the office and speak to the doctor when the bill gets late. We just explain that we need to pay our workers and are counting on their payment. We ask when we can expect it. I think it is important to stay on top of it as it is even more difficult to get them to pay when they owe for two or three months worth of work. It's a touchy subject. I would like to hear how others have handled this situation.
Alice

PTBILLER · « **Reply #2 on:** February 22, 2009, 07:09:49 PM »

Hi Alice-Thanks, I'm glad I'm not the only one to experience this annoying habit. If anyone else has any pointers, please let us know. Thanks

PMRNC · « **Reply #3 on:** March 03, 2009, 03:40:59 PM »

Check your state laws. Some states will allow you to charge a "percentage" as Interest and others a flat fee. Depends on the state the provider is located in.

Linda Walker
PMRNC
www.billerswebsite.com

keekadee · « **Reply #4 on:** March 24, 2009, 05:54:40 PM »

one thing that I noticed was I was getting more payments when I changed clients due dates from the beginning of the month to the 20th it made it easier for them to spread payments. Most big bills, rent car note insurance is due on the 1st leaving people strapped until there next paycheck.

Medical Billing Forum · « **Reply #4 on:** March 24, 2009, 05:54:40 PM »

ChristineS · « **Reply #5 on:** May 06, 2009, 02:02:13 AM »

Would it be bad to have in your contract that the bill was due on such and such date and that you exspect the payment no later than three days after the origional date?

PMRNC · « **Reply #6 on:** May 07, 2009, 08:52:01 AM »

Yes, you should have some sort of clause in your contract to protect you from chronic late payers, but I don't believe 3 days to be even remotely fair or reasonable. 15-30 days is more reasonable. My contract stated 30 days to which they got billed a late fee, and the next step was just terminating them for breach of contract. I didn't mess around with clients who didn't pay me.

Linda Walker
PMRNC
www.billerswebsite.com

Michele · « **Reply #7 on:** May 08, 2009, 12:18:15 AM »

Linda is right. You should definitely put it in your contract. We state 10 days but we don't charge a late fee unless they are 30 days. (3 is way too unreasonable) Unfortunately we haven't been quite as strict as Linda and we have a couple of chronic late payers. The finance charge doesn't seem to faze them. We have talked about instituting a new policy that will include terminating the chronic late payers.

Michele

Medical Billing Forum · « **Reply #7 on:** May 08, 2009, 12:18:15 AM »

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