Friday, February 28, 2014

3 Ways to Improve Cash Flow

I remember when my family relocated to a new city and I applied for a job at a dental practice closer to home. This practice had been open for a little more than a year and seemed to be thriving. However, as the months went by, I realized that this practice had no systems in place … and it was especially noticeable in the collections. After about three months, the doctor told me that that month was the first month since the practice opened that he was able to draw a paycheck. This was a collection problem. Over my 20 years of experience in the dental office, I have learned that collecting money is a task that all financial coordinators will master in their careers, but achieving cash flow is an even greater skill to master. We all strive to achieve a collection rate of 98% of our production so when we have that monthly team meeting to review the numbers, we can sit glowing at our accomplishment. However, as a practice owner, improving the cash flow can be a much bigger achievement. It is vitally important for every dental practice to create systems that will significantly improve cash flow, even if collections aren’t increased.


  1. I love your posts, but I may have to disagree a little with using the PPO fee. It may help in the short run, but in the long run insurance companies will not increase their reimbursement since we are charging the normal UCR? Correct? Or is there a way to file with insurance showing the higher fee, but show the patient a more accurate fee using the PPO?

    1. I always teach to bill out full fee to the insurance company when an office is using Fee Schedules. If you read my other blog post about fee schedules you will see how to use a different claim format to bill out full fee to the insurance company. Use the DX2007F or the DX2012F claim form and it will send full fee to the insurance company.
      Thank you,