How & Why it Works – It’s Just Smart Math
Most budgeting is based on a four week month. However, there are more than 28 days in most months. Those extra days mean payday payments will be less than your patient would think. That makes enrollment attractive which increases the likelihood they will enroll and ultimately increase collections.
For example, a $400 monthly obligation is reduced to a $93.81 weekly payment. The perception is that $93.81 weekly is less than $400 a month and much easier to budget since its collected on or shortly after your patient is paid. Patients want affordable ways to pay and MyPaydayPlan makes it easier for them to do so.
The Best Time to Collect
Smaller payments, derived from your patient’s monthly payment and their pay frequency, are collected shortly after they are paid (similar to a payroll deduction program) which dramatically improves your chances for collection. No other payment collection system works this way. Our proprietary Date Selection Software makes it easy for your staff to align payments with paydays. The smaller payday payments accrue until the full monthly payment has accumulated. Then, our system electronically deposits the full monthly payment into your checking account and electronically notifies you of the details. No need to modify your existing billing system because we actually enhance it. Your staff won’t be spending time constantly chasing amounts that are owed to you. That saves you money also. Increasing payment compliance will also reduce the number of accounts you turn over to collection agencies which is really costly, not only in revenue, but patient satisfaction.
Pre-Commitment and Billing Productivity
Unfortunately, paying for healthcare services that you have provided is not always the highest priority on your customer’s plate. Having your patients pre-committed to an automated collection of smaller payments they feel comfortable with will greatly increases the chances for collection. Offering smaller, more affordable payday payments will help obtain such a commitment.
MyPaydayPlan Eliminates the Temptation to Spend what is Owed to You
MyPaydayPlan eliminates the temptation to spend what your patients have committed to pay you because the amount your patient should set aside each payday towards the monthly obligation is deducted at the best time possible. Your patient won’t spend what they agreed to pay you on other obligations or impulse items that may come up from time to time. The best time to collect is when your patient has the funds to pay, and that is when they are paid. After all, they can’t spend what you have already collected.
Works With Your Current Billing System
Developing your own ACH collection system that collects payments when your patients are paid and then accounting for every penny would be cost prohibitive. That’s all we do. We are collection specialist. It is always best to prevent a payment issue before it becomes a problem in the first place and that’s what MyPaydayPlan is all about. We enhance your current billing process by reducing customer follow up which will reduce your administrative costs.
We increase the likelihood the payments are going to be collected at the lowest possible cost because we reduce administrative costs and eliminate exorbitant credit card fees unlike any other payment collection system. By offering more desirable payment options that are easier for patients to absorb and pay is just smart business. Like they say, the best way to eat an elephant is one bite at a time. Payday payments are the same, smaller bites. However, you’re paid the entire amount you’re owed, without any discounts.
Payment Reminders make it Easier for your Patients to Remember
Additionally, since we automatically notify the patient via email and text (SMS) a day before their payment is going to be collected we increase the chances of collection even more because the notification may remind your patient to be sure money is in the bank. And since the payment is much smaller than a large monthly payment, it’s easier for your patients to make sure it is there.