Starting a Medical Billing Business > Starting Your Own Medical Billing Business

Late Payments

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PMRNC:

--- Quote ---Some people are using ACH.
Is that advisable?
--- End quote ---

I think this depends.. I have MIXED feelings on this.. I had one client who I setup on reoccurring charge basis using ACH through my merchant acct.. started out smoothly but later on became a pain because I was charged when transactions declined.. after a few months of this off and on I stopped it. I have ONE client right now who does all his payments with his paypal and it's there on the 11th OF every month, like CLOCK WORK .. been with me for about 5 years now.   I think if you have a good provider who wants to set it up, go ahead, give it a shot, work it into your contract with terms to allow you room to cancel ACH or even charge for declined transactions. I think this is something you have to see works for you. I am pretty lucky with clients I have now as I have not had any issues with non payment in a long time.. but I have had providers in the past who I could NEVER see this working for. Just analyze the client base you have and past payment history to see if it's something that would benefit your business. Now you can even do credit checks :)

KarenH:
I had one client that would pay a partial portion of the monthly statement. The client started out paying in full within 10 days of their statement then would start sending in partial payment. Obviously that didn't work for me- it was stated in my contract that payment was due in full in 10 days from the invoice date. Needless to say that client is no longer with us.
What does work for us is EFT into our business account the payment is normally in the account within 1-2 days after I issue a statement. Our other clients make sure their payment is here in under 10 days.
I have used the late fees which is either the flat amount stated on in my contract or the % that is allowed by my state. Thankfully I have very few problems and if I do the late fee starts immediately, anything that's in my contract is followed.

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