How to Keep Your Business Standing When Disaster Strikes

Moore, Oklahoma was devastated 
by an EF5 (210mph) tornado in May 2013. 24 lost their lives, including 14 children and 377 others injured. The powerful and dangerous tornado stayed on the ground for at least 39 minutes over 17 miles. Its path was densely populated with established neighborhoods and schools, just like many of yours.

Witnesses described it as a black storm wall, spanning 1.3 miles at its greatest width. This was not a storm to be trifled with. In my research, I read articles about how FEMA uses the "Waffle House" index as a means to measure how the community is bouncing back. Waffle House, Home Depot and Walmart all have robust risk management plans in place, FEMA explains in their 2011 FEMA blog:

"The success of the private sector in preparing for and weathering disasters is essential to a community's ability to recover in the long run," states Dan Stoneking, Director of FEMA's Private Sector. Why is a business' risk management plan so important? Dan answers, "Up to 40 percent of businesses affected by a natural or man-made disaster never reopen, according to the Insurance Information Institute."

There were only a handful of broken down trees and houses left standing. The following summer, I returned to the Plaza Towers Elementary School site where children should have been playing, laughing and scurrying about. Instead, it was deafeningly silent; the neighborhood was void of anything except concrete pads.

Against all odds, there was still one house left standing across the street; albeit only partially so. There were no neighborhood garage sales, no kids playing in yards, and no trees populating the earth. It was breathtaking to see with my own eyes. Imagine your own neighborhood leveled in a matter of just a few minutes.

An estimated 1,150 homes were destroyed. Hundreds more were damaged to the point of requiring demolition. Two schools were rebuilt, while countless businesses remain lost, including dental colleagues and practices.

I had the privilege of volunteering at ServeMoore with my 16-year-old goddaughter for a few days in the summer of 2013. ServeMoore is a parachurch organization that mobilized efforts on the night of the tornado through a simple text. They had never operated a crisis center, and yet, FEMA was amazed at the organization's ability to construct a support system in such a short period of time. They processed monetary donations, along with thousands of major & minor tools. What started with a few people believing they needed to help, has grown into an operation with volunteers from every continent and state. In the first week alone they had over 3,000 volunteers. ServeMoore began with a focus on cleanup and repairs, and now three months later, they are still working to meet all the community's needs.

We spoke with so many affected both physically and emotionally by the tornados. Their stories were filled with courage, determination, strength, and heartache. Two of the women we met were recent widows, trying to navigate how to fix their houses alone. One fell off the roof and broke her kneecap. Both were taken care of by ServeMoore volunteers.

At another home, we finished demolishing a backyard deck, initially destroyed by the tornado. The family was unable to live in their own home but they were so overwhelmingly grateful for the cleanup help. The effects of losing friends and neighbors held them in a state of shock, but not once did I hear a complaint or pessimistic thought leave their mouths. I was amazed at the endurance and courage of those who survived. "Oklahoma Strong" is their mantra for a reason!

While many businesses were left unprepared for a natural disaster, The Waffle House, located a half-mile from the Tornado's path, was able to reopen the next afternoon with the help of backup generators. Their preparedness not only allowed them to provide emergency supplies to the victims but to also keep their business afloat. The time to prepare is not during a natural disaster.

So, how can you create your risk management plan? FEMA has a website full of information about developing a preparedness program, with step-by-step instructions. A few notable areas needing your attention are:

Insurance. Do you have enough insurance coverage for all potential natural disasters to rebuild and equip your practice? If you have recently remodeled or bought new equipment, it’s possible that your coverage is not adequate. Call your insurance company to review your coverage. 

Documents. Are all of your critical business and personal documents safe? A bank lockbox is secure and will typically withstand natural disasters. 

Contact information. If a tornado of Moore’s magnitude wiped out both home and office, would you know how to contact your staff to ensure their well-being? 

Technology backups. Do you know what is being backed up and when? The practice, image, and accounting software data should all be backed up off-site. I use Mozy.com and Carbonite.com, both give me the reassuring peace of mind during a crisis is overwhelmingly reassuring. They backup data however often you designate.  Mine is backed up hourly.

Financial buffer. An open line of credit or a practice savings account is necessary for any crisis. You will need immediately available cash. 

How would your practice survive during a natural disaster? It is springtime, the season when many of our communities are affected by devastating storms. Prepare now and pray you never have to know if you would survive.

Collection Agencies 101

By Guest Blogger: Andy Cleveland

Selecting a collection agency is like purchasing a hand piece, a car or a toothbrush: not all are created equal. Depending on the customer and circumstance, factors to consider are cost, risk versus reward, patient relationships, staffing scenario and brand coherence.

Lately, there have been a noticeable amount of social media posts looking for someone to “recommend a good collection agency.”  My goal is to help educate, motivate and empower the dental community to make informed decisions when looking into a collection agency for their practice.

First, it is important to acknowledge that using a collection company is merely treating the symptoms of an inefficient system. Some quick tips to help reduce the need of a collection service are:

1.  Properly pre-estimate the patient’s insurance portion at time of service. Performed internally, or by a third-party entity, it needs to be done properly.

2.  Have third-party financing options for people with a spectrum of credit scores. 

3.  Train and empower your staff to collect at time of service. If patients walk out without paying, you are creating the problem. Setting a cultural expectation to
be paid at check out relieves you from the burden of chasing down after-service payments.  

Inevitably, there will be some outstanding accounts receivable, regardless of practice efficacy. If the amount is outside your comfort zone, it's time to hire a company to help with the collection. 

Without further ado, here are 8 questions to determine the best fit for your practice when hiring a collection agency. Keep in mind, the answers are not necessarily definitive, but are tools to aid in your selection.

1.  In which states are they licensed or bonded?  Knowing this will help determine if their geographical coverage is sufficient. A collection company not authorized to collect in a neighboring can have damaging effects. In this case, going with a nationwide company is usually a safe bet.

2.  Do they have a proven process? Do they give examples of scripted patient communication, or are they  simply  “winging it?” Ultimately, how they communicate with your patient is a direct reflection of your values. So, if they seem vague, it's a red flag, as we're all prone to simple human error. The last thing you want is for your patient to leave negative reviews on your practice should they be treated unfairly by your collection agency.

3.  How is the company compensated?  Are they working strictly on a commission basis? Though initially attractive, there is no promise of performance from either party, which often leads to disappointment. If they have a large client with high volume and large balances, whose accounts are they going to call first? While neither malicious nor fraudulent, it just makes good business sense for them to cater to the high volume client, since dental patient balances are generally smaller.

4.  Technology.  Do they integrate with your software? How do you send them the data? Are they HIPAA compliant? A substantial accounts receivable that requires manual entry into a third party system can not only build up employee resentment from laborious data entry, but also marks the task as low priority. Look for a partner that can seamlessly sync up with your practice management software. If you'd like to see this done, let me know, the demo takes only about 15 minutes.

5.  Do they specialize in the dental field? If they work in other industries, how comprehensively do they understand your business?  I specialize in working with dental practices – it is what I am most passionate and is my core industry. Always be on the lookout for a company tailored to your needs. 

6.  Are the callers located in the U.S. or overseas? Are you willing to allow your patients to be called from someone in another country for cost savings? While cost is important, customer service, public perception and value are equally so. 

7.  Do they report to the credit bureau? Many collection companies insinuate they do, but never follow through. While every financial company reports to the agency when a debt is unpaid, most often dental practices do not, only to hurt the practice in the long run. 

8.  Does the company offer first party billing solutions? Will they work as an extension of your practice like a virtual assistant to your team? If the majority of accounts pay before 90 days, not only are less people being turned over to "collections," they are more likely to stay loyal to the practice, as well. 

If your practice is considering hiring a collection agency and needs further information, please do not hesitate to reach out. I will be happy to answer any questions or assist in any way I can.

About Andy Cleveland

“The Dental Accounts Receivable Ninja” has been in the revenue cycle space for almost 20 years and has served a variety of capacities. He began working with dental practices by motivating difficult patients to pay accounts on everything from hygiene visits to full mouth restorations. Learning the business from the ground up, he developed a proficiency in recovering lost revenues and rose to the top of his field.  Andy realized his skill sets were better utilized working with clients, so he moved to the consulting and service side of the business where he could make a greater impact. Currently, he works with individual and group practices optimizing their patient accounts receivable process to maximize profitability and efficiency, patient retention and frustration reduction.  

Check him out at www.andycleveland.com.