FORMS AND COLLECTING LETTERS.
Nearly every form of letter that has been devised for collecting
physicians accounts has been based upon those used by installment houses
and those in general use by wholesale merchants who deal with retail
dealers. They all carry the bluff idea. This is all right in dealing
with installment customers with whom you have a contract that will take
away the goods purchased, or with retail merchants who know they must
meet their obligations if they continue in business. The credit men of
mercantile institutions keep tab on their customers through the local
merchants exchange and the commercial agencies, and are in a position to
know to what extent it is safe to extend credit. The merchant cannot
refuse to pay his bills and go to another wholesale house and buy
goods, hence if he is a little tardy in meeting his obligations the
bluff letter will awaken him to the necessity of paying the bill.
With the doctor's customers it is altogether different. He knows that he
cannot be compelled to pay the bill, and that some other physician will
be only too ready to come at his call.
It is then evident that the bluff idea will not work with the man who
knows that he can get another doctor whenever he wants one, and that he
is so protected by the exemption laws that the bill cannot be collected
by resorting to law. So in reaching this class we must devise other
plans if we hope to accomplish anything. Here, my experience has shown
that sentiment is the key note in an effective collecting letter for
physicians. I have found that the more human interest, sentiment and
friendly feeling that can be woven into the letter the better it is.
Every time that I write a letter to a client I try and refer in some
manner to the patient or to some member of the family, and try to
impress them with the fact that I have a personal interest in them. The
following forms are suggestive of the idea, and have proven very
successful in my practice. The classification is, of course used with
every account--they are all No. 1 until they fail to pay. The word
"Class" and the number are stamped with a rubber stamp. Letters of this
kind should be pen written--typewriter and form letters will not
answer, they lose the personal sentiment.
A duplicator that will easily reproduce 100 copies of a pen written
letter may be had for about $5, and the letters may be "formed" on this,
leaving space in which the personal matter may be written. If properly
done they will have the appearance of a hand written letter. Don't have
your letters too polished. Remember you are a very busy man--just
writing a note to a friend. Omit the rhetorical embellishments from this
class of correspondence in all cases.
The first of my series of letters is along the following line.
CLASS 1.
Dear Sir:--
In looking over my books with a view of raising a small amount of money,
I note there is a balance due on your account of =$10.00=, and as you have
always been one of my best paying patrons, I have let this run, knowing
I could get it whenever I called on you. I always divide my accounts
into three classes: 1. Those who I can depend upon to pay when I call on
them. 2. Those who are slow to pay, and that I must keep after. 3. Very
poor pay and unsatisfactory clients. Whenever one of my patrons fails to
respond to my statements it reduces him to the next lower class.
As you are one of my First Class patrons, I know you will be only too
glad to assist me at this time. I saw little Mary on the street the
other day, and she is looking well and hearty. I am glad she is so well,
as we had a hard fight to save her last spring.
Wishing you health, happiness and success, I am,
Yours very truly.
Now if this fails to bring the money, we will try Class No. 2.
CLASS 2.
Dear Sir:--
I was very much disappointed in not receiving the small amount of your
account, =$10.00=, as you were one of my Class 1 customers, and I felt
sure you would not fail me when I called on you. I hope you will attend
to this at once, as I would like to place you back on my Class 1 list.
A good credit is the greatest asset that any man can have, and I find I
can only maintain my credit by making prompt payment of my bills. To do
this I must have a prompt settlement of the bills due me. I know that
you value a good credit, and feel sure that you will not again
disappoint me.
How is baby getting along? I guess he can almost stand by this time.
Come in and see me any way, and we can no doubt make arrangements that
will help us both out, and continue the best of friends.
Yours very truly.
In case he is not interested in your friendship, and does not show up
with the money, we will try our third and last shot.
CLASS 3.
Dear Sir:--
I am very sorry that you did not see fit to reply to my letters of =July
15= and =August 15=. Not so much on account of your failure to pay me the
=$10.00= which you owe, but because I dislike to lose faith in my fellow
man, and you know it hurts a fellow when he finds his judgment was
wrong. I have often wondered how I would feel if I knew my little child
was up in heaven, looking down at me with her angelic eyes, wondering
why I did not pay the doctor who worked so hard all night to give her
ease and to keep her with me. I don't believe that I could be happy.
Still =John=, I believe in you, and feel sure you will come in and see me
about this little matter. I just can't believe I was mistaken in you.
Wishing you success, I am,
Very truly yours.
The personal matter must be fitting to the case. If your patients do not
die, you might speak of the "innocent little babe who will grow up to
womanhood unpaid for." Lawyers in Oklahoma hold a lien on the cause of
action until their fees are paid. Wonder how that would work with the
medical profession?
The point that I want to press home to you is that if you cannot get a
settlement with sentiment, you cannot get it any other way. You cannot
bluff them for they know they are execution proof. Read the exemption
laws of your state and you will find that there is not a third of your
patrons but could beat you if you tried to enforce payment by law.
Here are some thoughts that have been worked into form letters that may
give you an idea that you can use in some special cases:
"Your continued silence after receiving our previous letters, compels us
to infer that you neither propose nor intend to remit us the small
balance on your account."
"The amount is justly due, and we now state positively that on account
of our having been patient, lenient and courteous with you in the past
we cannot let the matter drop at this time by merely writing you."
"From information we have received from different sources we appreciate
the fact that you are amply able to pay the amount due."
"We are placing the utmost reliance upon receiving a remittance from you
in the next few days."
Sometimes you can get settlement by means of a sight draft. Some people
seem to fear a bank and will pay an account when held by a bank when
they would pay no attention to anyone else.
Always get an order from a corporation before rendering service. If they
call you to attend any of their employees, have them sign an order
before giving the case any attention, otherwise you may not be paid for
your services. They will refuse to pay, and the patient will claim he
did not call you. Have some order cards with you all the time for the
signature of corporations or others who will call you to attend a
patient who is not related to them. The following form will answer:
......................1912
=Dr. John Smith:=
You will please attend
......................................................
during his present illness.
..................................
When some corporation or other responsible party calls you up and wants
you to attend some one, have them sign the card, then they will be bound
to pay if the patient fails to do so. The person representing a
corporation should sign, as in many cases they have no authority to bind
the company.