The Backbone of Your Practice: Why a Strong Office & Financial Policy is Essential
A well-defined office and financial policy is the foundation of a successful dental practice. It establishes clear expectations between the practice and the patients, ensuring smooth operations and financial stability. Your office policy should address crucial areas such as insurance billing, patient balances, missed appointments, no-shows, and fees for credit card transactions and missed visits.
Why an Office & Financial Policy Matters
Your office policy is more than just a document—it’s the spine of your practice. It serves as the standard operating procedure that guides your team and protects your business. Every staff member should know it inside and out, and it should be enforced consistently..
Key Areas to Address in Your Policy:
1. Insurance Billing & Patient Balances
Specify that patients are responsible for any balances not covered by insurance.
Address pre-payment policies for procedures with high out-of-pocket costs.
Go over collections protocol and any interest applied to past-due balances.
2. Missed Appointments & No-Shows
Set a firm policy regarding cancellations and no-shows.
Implement a missed appointment fee to discourage last-minute cancellations.
Require 24-48 hours’ notice for appointment changes.
3. Credit Card & Administrative Fees
Explain any surcharges for credit card transactions.
Outline potential fees for returned checks or declined payments.
4. Annual Review & Patient Acknowledgment
Your policy should be reviewed and updated annually to reflect changes in laws, insurance policies, or practice standards.
Patients should be required to sign a new agreement each year, whether changes were made or not. (pro tip)
If a patient refuses to sign, they are acknowledging that they are not a good fit for the practice, and that is okay.
How to Implement & Ensure Compliance with Laws and Regulations
Creating a financial policy is not just about setting rules—it’s about ensuring compliance with all applicable laws and regulations. Here’s how to do it effectively:
Review State & Federal Regulations: Ensure your policy complies with the ADA guidelines, HIPAA, and state-specific financial disclosure laws.
Consult Legal Counsel: Have an attorney or compliance expert review your policy to avoid any legal pitfalls.
Educate Your Team: Every team member should be trained to confidently explain and enforce the policy.
Use Clear Language: Make the policy easy for patients to understand to reduce confusion and disputes.
Update Annually: Changes in laws and insurance requirements may necessitate updates. Have all patients sign the policy yearly, whether changes are made or not.
Example Office Policy Welcome to Our Practice! We appreciate your trust in us for your dental care. Our goal is to provide the highest level of service while ensuring a transparent and smooth financial process. Please review our office policy below and sign to acknowledge your understanding and agreement. ______: Missed Appointments & Late Cancellations We require at least 48 hours’ notice for appointment cancellations. Failure to do so will result in a $100 fee. Repeated late cancellations or no-shows may lead to dismissal from our practice. ______: Insurance Your insurance policy is a contract between you and your insurance provider. Our office is not a party to this contract. As a courtesy, we will assist in submitting claims and providing pre-treatment estimates. However, it is your responsibility to understand your insurance benefits and coverage. Any balance not covered by insurance remains your responsibility. ______: Deposits A deposit is required to schedule certain treatments over $400. This deposit will be 25% of the total out-of-pocket cost and will be applied toward your final treatment balance on the date of service. ______: Payments Full payment is due at the time of service. If insurance benefits apply, estimated copayments and deductibles must be paid at the time of service unless alternative arrangements have been made. Any unpaid balance over 30 days will incur a 1.5% monthly interest charge (18% APR). In the event of delinquency, collection fees may apply. ______: Credit Card Processing Fees We accept all forms of payment. A 3% processing fee will apply to credit card transactions. Debit card and cash payments do not incur any additional fees. By signing below, you acknowledge that you have read, understand, and agree to the policies outlined above. First Name: __________________________________ Last Name: ______________________ Signature: _____________________________________ Date: ___________________________
Disclaimer: This document is intended for educational and informational purposes only. All doctors and providers using this form should consult with legal counsel to ensure compliance with applicable state and federal laws before implementing it in their practice.
ADA Guidance on Financial Policies
The American Dental Association (ADA) recommends that every practice establish a clear, written financial policy that outlines payment expectations, insurance handling, and consequences for missed payments or appointments. According to the ADA, well-communicated financial policies help build trust between the practice and patients, reduce confusion, and minimize disputes over billing issues. For more details, visit the ADA’s official website and financial policy resources. Visit the article by the ADA here.
How Arevalo Elite Services Can Help
At Elite Dental Systems, we specialize in helping dental offices create a compliant office and financial policy that fits their unique needs. Arevalo Elite Services provides consulting to craft policies from scratch and ensure seamless implementation. In addition to policy development, we offer remote dental billing services to support practices in optimizing their revenue cycle and reducing claim denials.
We assist with all revenue cycle management (RCM) processes, system optimization, and streamlining daily operations to enhance efficiency. Our expertise extends to creating and refining all office forms, manuals, standard operating procedures (SOPs), and handling credentialing to ensure smooth onboarding and compliance.
To schedule a discovery call book here: www.elitedentalsystems.com/contact
Shelbey Arevalo Featured in Dental Entrepreneur Women
Shelbey Arevalo was recently featured in Dental Entrepreneur Women (DeW) for her expertise in dental billing and system optimization. Her article provides valuable insights on streamlining revenue cycle management and enhancing practice efficiency. Read the full article here: dew.life/2025/03/10/optimizing-systems-elevating-care-my-passion-for-dentistry
