Managing unpaid patient bills can be overwhelming for dental practices. Here’s a quick breakdown of what collection agencies can do that most dental offices struggle to manage on their own.
An experienced collection agency will recover debts from your patients amicably without damaging reputation of your dental office.
First and foremost, the involvement of a collection agency serves as a significant pressure tactic on patients who have yet to make their payments.
1. Skip Tracing to Find Missing Patients
Patients who move or change numbers often slip through the cracks. Collection agencies use advanced databases and tools to locate these individuals—resources dental offices simply don’t have. They can find the latest phone, address, email and credit score of your patient. A collection agency with national license can collect unpaid bills from patients who may have moved out from your state.
2. Credit Reporting for Payment Leverage
Agencies report unpaid bills to credit bureaus, affecting a patient’s credit score. This added pressure increases the chances of payment—a tactic not available to in-house staff.
3. Litigious Patient Check and Bankruptcy Screening
A collection agency for dentists can check of a patient has a history of suing businesses like yours and take a more cautious approach on such accounts. This protects you from potential lawsuits. Collection agencies can also check is the debtor has been legally granted bankruptcy protection from debts owed.
4. Legal Action Coordination
If legal action is needed, agencies work with attorneys to streamline the process. They know how to handle lawsuits, demand letters, and court filings effectively. Dental offices simply do not have time or resources for this.
5. Compliance with Debt Regulations
Agencies follow strict laws, like the Fair Debt Collection Practices Act (FDCPA), ensuring collections are legal and professional. In-house teams may lack this specialized training, leading to potential compliance risks.
6. Handling Disputes and Tough Conversations
Agencies are skilled at defusing conflicts with patients, negotiating settlements, and resolving disputes—saving your team from awkward or confrontational exchanges.
7. Automated Follow-Ups Across Channels
Agencies use automated calls, emails, and texts to follow up on overdue payments. Managing this kind of multi-channel outreach can be too costly and time-consuming for dental offices.
8. Contingency-Based Collections
Agencies only get paid if they collect, making their services both efficient and cost-effective. In contrast, in-house efforts require time and staff, regardless of success.
9. Recovering Aged Receivables
Older debts are harder to collect. Agencies specialize in recovering accounts over 90 to 180 days past due—giving practices a better chance of recovering stale balances.
10. Higher Success Rates
Trained collectors use proven strategies to recover payments without burning bridges. Their expertise helps recover more funds than in-house attempts alone. They may offer patient to clear their dental bill in installments and systematically follow up in case an installment is missed.
11. Protecting Your Reputation
A third-party agency shields your practice from uncomfortable financial conversations, preserving patient relationships while pursuing unpaid accounts.
Outsourcing to a collection agency saves time, reduces legal risks, and improves recovery rates—allowing dental offices to focus on what they do best: patient care.