Getting paid for unpaid bills

I work for a corporately owned, small animal practice on a production basis. We occasionally allow clients to make payments, and we accept checks. When a client doesn't pay or a check bounces, that amount's deducted from my monthly production total, and the client's turned in to a collections agency. If the company then receives payment, should I receive back payment for my services?

"In general, doctors paid on production only get paid for invoices that actually get collected," says Veterinary Economics Editorial Advisory Board member Dr. Karen Felsted, CPA, MS, CVPM, a consultant at Brakke Consulting Inc. in Dallas. "So you obviously wouldn't get paid if a client didn't pay at first, but if the practice ultimately collects, you should get your percentage of the collected amount." Keep in mind, she says, if a bill's collected through a collections agency, the practice receives less than the original invoice—the agency's probably taking at least 40 percent.

Dr. Felsted says if you work in a corporate practice, the details of your production pay arrangement are most likely spelled out in a contract. If the contract says you won't receive any part of invoices sent to collections, you probably don't have much recourse.

"If that information isn't specifically spelled out, talk to your supervisor and present your case, particularly if you aren't the one deciding whether clients can charge," Dr. Felsted says. "I think doctors should be responsible when they decide to let clients charge, but associates often don't set charging policies. If you do decide when clients can charge, consider requesting guidance and training for everyone in the practice on how to better make these decisions," she says. "This way, you can cut down on unpaid bills in the future."

Dr. Karen Felsted