Practice Management
I’m Sick of Not Getting Paid on Time—or at All.
How Can I Get Better at Collecting and Improve my Cash Flow?
First off, congratulations on asking the question. Most equine practitioners would rather float teeth on Clydesdales with hand tools all day than work on the business side of their practice. But without revenue there is no practice, which means collecting has to be a top priority. Here are a few strategies for shrinking that pile of accounts receivable.
1. CHANGE YOUR MINDSET.
Squeamishness about asking for payment or discounting fees when clients push back stems from misunderstanding your worth. You bring tremendous value to clients and horses, and it’s time to recognize that. Your fees reflect your value, so there’s no need to apologize when it’s time for clients to pay.
2. CREATE A FINANCIAL POLICY AND STICK TO IT.
If you don’t have a written policy, create one that states payment is expected at the time of service. Proactively communicate your policy to every client. Post it in your reception area, on your website and at the bottom of estimates. Make your policy clear to begin with, then stand by it without exception.
3. ADDRESS COST UP FRONT.
Speaking of estimates, make sure to provide treatment plans with costs listed out, especially for routine care. When horse owners understand your fees from the outset and have a chance to ask questions, there’s less friction when it’s time for payment.
4. PLAN AHEAD FOR ABSENTEE OWNERS.
When you work with large boarding or training operations, the owner may be in another location. Find out who’s financially responsible when scheduling the appointment. Set up a payment method in advance, such as the CareCredit credit card, and confirm you’ll text a link once services are rendered so the client can pay using their mobile device.
5. GET COMFORTABLE WITH TECHNOLOGY.
The last few years have seen phenomenal advances in mobile and contactless payment solutions. Once your clients are set up, collecting becomes as easy as a scan of a QR code and a few clicks on a smart device. A mobile payment method cuts down on the number of times you hear, “Gosh, I left my checkbook in the house.”
6. OFFER OPTIONS FOR CARE AND PAYMENT.
It happens: Sometimes clients can’t afford your full recommendation. Instead of waiving or discounting your fees or opting for deferred billing, talk through financially feasible treatment options. This might mean providing some care now and some later, or offering a third-party payment option that lets the client accept the full plan now and spread the cost out in a budget-friendly way.
No matter how long you’ve sent invoices, you can make a change that improves your practice health. Diligence and communication about your financial policies can strengthen client relationships. Fewer accounts receivable, stronger client bonds, and better care for horses—who wouldn’t want that? MEV
Kyle Palmer, CVT, manages VCA Salem Animal Hospital in Oregon. During his 30 years in the veterinary field he has been manager of a mixed equine and companion animal practice, executive director of Northwest Equine Practitioners Association, a consultant, and an author in veterinary management magazines.