If a check is not paid on proper presentation, resort may be made to the original claim. Have the banker endorse the reason for non-payment on the check.

Certified checks are checks that have been endorsed by the bank, and const.i.tute payment as to the persons drawing them.

If a check is turned down at the bank notify the drawer at once.

If you receive a check and endorse it and place in your bank for collection, and it is turned down, do not return it to the drawer until you get a remittance to cover, without first erasing your endors.e.m.e.nt.

CHAPTER V

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 inst.i.tutions 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 cla.s.s 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 cla.s.sification is, of course used with every account--they are all No. 1 until they fail to pay. The word "Cla.s.s" 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 s.p.a.ce 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 cla.s.s of correspondence in all cases.

The first of my series of letters is along the following line.

CLa.s.s 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 cla.s.ses: 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 cla.s.s.

As you are one of my First Cla.s.s patrons, I know you will be only too glad to a.s.sist 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 Cla.s.s No. 2.

CLa.s.s 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 Cla.s.s 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 Cla.s.s 1 list.

A good credit is the greatest a.s.set 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.

CLa.s.s 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