Patient Collections and Compliance: Striking the Right Balance in Dental Practices
Expert insights from Jasmine Smith, Versa Solutions, presented at Dental Insurance Live
Many dental teams feel uncomfortable when it comes to collecting money from patients—especially overdue balances. The fear of conflict, the uncertainty around tone, and the risk of noncompliance with HIPAA and consumer protection laws often lead to hesitation or avoidance. Unfortunately, this hesitation has real costs: aging receivables, write-offs, and an erosion of financial sustainability.
Jasmine Smith, founder of Versa Solutions, understands these challenges deeply. At Dental Insurance Live, she addressed the often-avoided topic of patient collections and broke down exactly how to approach these conversations legally and ethically—without sacrificing practice revenue or patient trust.
The Regulatory Landscape: Why Compliance Matters
Jasmine began by highlighting the key compliance considerations practices must be aware of when contacting patients about unpaid balances. These include:
- HIPAA Privacy Rules
All communication regarding a patient’s financial status must protect personal health information (PHI), especially when leaving voicemails, sending emails, or using third-party billing services. - The Fair Debt Collection Practices Act (FDCPA)
While it applies primarily to third-party collection agencies, practices that outsource or use aggressive language may risk violating its provisions. - Telephone Consumer Protection Act (TCPA)
Automated calls or texts about balances must comply with TCPA regulations, including patient consent and opt-out options.
“You’re not just calling about a balance—you’re representing your brand, your ethics, and your legal obligations,” Jasmine explained. “There’s a right way to do it, and it starts with knowing the rules.”
Do’s and Don’ts of Contacting Patients About Past Due Balances
Jasmine offered a straightforward list of behaviors to follow and avoid when reaching out to patients about money:
Do:
- Confirm the balance internally before reaching out—no surprises or errors.
- Use a calm, nonjudgmental tone and frame the conversation as a courtesy.
- Give the patient a clear breakdown of the charge and how it was applied.
- Offer multiple payment options, including portals, phone pay, or payment plans.
- Document all communication attempts and outcomes in the patient record.
Don’t:
- Leave detailed voicemail messages about balance amounts.
- Share any PHI in email or text unless consent and encryption are in place.
- Threaten legal action or report to collections without internal escalation and final notice.
- Assume the patient is unwilling to pay—often they are unaware or confused.
“Tone matters. Language matters. If your message sounds like a collections agency, you’ve already lost the trust,” Jasmine noted.
Scripts and Sample Language
Many dental professionals struggle with how to phrase balance reminders in a way that is professional, polite, and effective. Jasmine shared examples of compliant, compassionate phrasing:
Initial Outreach Example (Phone):
"Hi [Patient Name], this is [Your Name] calling from [Practice Name]. I’m reaching out as a courtesy regarding a small balance on your account from your recent visit. We wanted to make sure you received your statement and see if you had any questions or needed help getting it taken care of."
Follow-Up Email Example:
"Hello [Patient Name],
We’re reaching out to remind you of a remaining balance of [$XXX] on your account. We’d be happy to help with any questions or set up a payment plan that works for you. You can also pay securely through our online portal here: [Link]. Thank you for choosing [Practice Name]."
Jasmine emphasized that collection conversations should feel like an extension of the same patient-centered care the practice provides clinically.
Building a Compliance-Safe Collections System
To streamline collections while minimizing compliance risk, Jasmine recommends the following infrastructure:
- Centralized Billing Logs
Maintain a log of all balance-related outreach with timestamps, staff initials, and method of communication. - Balance Thresholds and Escalation Tiers
Decide internally what balance amounts trigger different actions (e.g., email only under $100, phone call above $250, final notice at 90 days). - Team Training and Call Scripts
Train all team members on tone, wording, and how to handle patient questions without offering unauthorized financial advice. - Patient Consent Management
Update intake forms to include consent for text, email, and digital billing communications in compliance with TCPA and HIPAA. - Payment Tools That Reduce Friction
Offer one-click payment links, QR codes on statements, and recurring payment plan options to minimize barriers to action.
What to Do When a Patient Refuses to Pay
Not every patient will respond positively—and some may refuse to pay altogether. Jasmine advised that practices document these cases thoroughly and follow a clear internal collections policy before referring to a third-party agency.
“Collections are part of doing business, but how you manage them reflects your practice’s values. You can be firm without being aggressive. You can be compliant and still compassionate,” she said.
About the Expert
Jasmine Smith is the founder of Versa Solutions, a practice operations consultancy that helps dental teams streamline billing, compliance, and administrative workflows. With a background in billing, regulation, and patient communication, Jasmine brings clarity to one of the most challenging parts of running a dental office. She was a featured speaker at July’s Dental Insurance Live, where she presented on best practices for patient collections and compliance.