Optimizing cash inflows: Filling cavities in revenue for a healthier bottom line.

One of the quickest ways to strengthen your practice’s financial health is by improving your cash inflows. This article will talk about strategies to increase revenue, streamline collections and ensure that your patients — and your practice — are set up for success.

Optimizing cash inflows starts with setting clear payment expectations. From the very first appointment, it’s important to let patients know how payments work in your practice. Collect co-pays at the time of service, and consider offering flexible payment options, like text-to-pay or ACH payments, to make it easier for patients to settle their balances.

Streamlining your payments systems can make a big difference, too. Tools like portable processors that can be used chairside, electronic statements and online payment options reduce friction for patients and help to improve your collections. Your banker can also help you optimize your merchant processing to lower fees, using software that routes payments through the least expensive path.

It’s also important to monitor your accounts receivable actively. Unpaid balances can pile up quickly if left unchecked. Consider creating a script for your front office team to call patients with balances overdue by 30 days. When active patients come in for their next appointment, check for outstanding balances beforehand and collect payment as they arrive. These small steps can significantly reduce unpaid accounts over time.

Another area to review is your fee structure. Are your fees keeping pace with inflation and rising costs? A modest annual fee increase — around 3% — can ensure that your pricing stays competitive while supporting your practice’s financial needs.

Maximizing your insurance reimbursement rates is another way to improve inflows. Having a professional review your reimbursement agreements every two years can help ensure you’re receiving fair compensation.

Your staff also plays a key role in driving revenue. When patients understand the value of their treatments, they’re more likely to follow through with them. It’s important to train your team to present cases effectively, focusing on helping patients understand the “why” behind their treatments. Clear communication improves patient acceptance and brings revenue into your practice faster. Also, training your staff to submit claims electronically, with processes to follow up on delinquent claims, is a good way to accelerate payments from insurers.

Improving cash inflows isn’t just about collecting money — it’s about making your revenue cycle more efficient. Work with trusted advisors like your CPA, a dental practice management consultant, or your banker to put these strategies into action. By focusing on how you get cash in the door, you can set your practice up for growth and success.

So, what steps can you take today to optimize your cash inflows? Start with one or two strategies discussed and build from there. With consistent effort, you’ll see the results in your practice’s financial health.

Whether you’re already a Commerce Bank link opens to a Commerce Bank page customer or just exploring ways to improve your practice’s financial health, don’t hesitate to reach out. We’re here to support your goals, whatever those may be.