In private practice, consistent revenue is crucial for short-term operations as well as planning for future growth. An ongoing challenge for private practices is the high rate of late cancellations and no-show appointments. On average, clinicians experience a 17% no-show rate for telehealth appointments. This not only represents significant revenue losses but wastes valuable clinician time. To combat this, implementing an auto charging system for late cancellations and no-shows offers a practical and effective solution. This article explores the benefits of auto charging, and how to set up this valuable feature in Healthie. 

Already a Healthie member? Check out the Help Doc to get started. 

3 benefits of automatically charging a late cancellation fee

Let’s consider 3 of the biggest benefits of setting up an auto charge for missed appointments and cancellations. 

Benefit #1 - Protect your practice revenue

When a client misses an appointment or cancels without adequate notice, the clinician forgoes the revenue generated for a completed appointment, and oftentimes struggle to recoup the penalty fee expected to constitute for the missed appointment. 

Auto charging ensures that clinicians are at least partially compensated for missed appointments. This approach not only safeguards revenue streams but also encourages clients to adhere to their scheduled appointments. The prospect of monetary penalties can be a strong deterrent for clients who are considering canceling an appointment for non-urgent reasons. 

Benefit #2 - Streamline your billing workflows

One of the greatest burdens for any practice can be the back-and-forth communication associated with missed appointments or late cancellations. The tedious process of invoicing the client for penalty fees can be laborious, time-consuming, and sometimes unsuccessful. To aid clinicians and combat this problem, Healthie has fully automated the auto charging process – from identifying a no-show appointment to processing the payment. This not only secures the fees due but also significantly reduces the administrative burden. This allows your team to focus on client care, nuanced cases, or tasks that will grow your business. 

Benefit #3 - Enhance operational efficiency

Understanding the patterns of no-shows and cancellations in your practice is crucial for improving overall efficiency, Healthie’s auto charging feature offers comprehensive reporting on no-show and cancellation rates, providing valuable insights into client behavior. These reports empower you to make informed decisions, such as adjusting appointment booking policies, offering incentives for early cancellations, or updating your schedule to better meet client needs.

By enhancing your operational efficiency, you can optimize your practice’s performance, reduce downtime, and ultimately increase your revenue stream. 

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Automatically invoice vs automatically charge clients

While invoicing clients is a common practice in many healthcare settings, it often falls short when compared to auto charging. Invoicing sends a bill after a missed appointment, relying on the client to take action and make a payment. This process can lead to delays, forgotten invoices, and ultimately, a reduction in collected revenue. Automatically charging, on the other hand, ensures immediate payment by processing the late cancellation fee directly from the client's account.

This proactive approach not only secures your revenue but reduces the administrative hassle of chasing payments, making it a far more effective solution for managing late cancellations and no-show appointments.

Prevent private practice revenue loss with Healthie

The introduction of Healthie’s auto charging feature, available on the Plus Plan and above, enables clinicians to customize their cancellation policies to fit their unique practice needs. Whether it's setting different fees for various appointment types or deciding how many hours before an appointment is considered late, Healthie offers the flexibility to tailor the system to your practice. By automating this process, you not only protect your revenue but also gain valuable insights that can drive improvements in client engagement and operational efficiency.

Next Steps

1. Sign up for or upgrade to a Healthie Plus or Group Plan.
2. Use the Help Doc to turn on automatic charging in your Healthie Settings.
3. Communicate your new/updated late cancellation policy and fees using the free templates provided in Healthie’s Form Library and add it to your onboarding flow. 
4. Use Healthie’s Appointment Reports to measure the effectiveness of leveraging this new feature.