Agreeing to clear payment terms is essential to establishing an effective credit control system and improving cash flow.
In all personal injury cases, a medical report prepared by a medical expert is required. In most cases, the medical expert will want to be paid as quickly as possible, but the solicitor that instructed them will not receive payment for the report from the defendant’s solicitors unless they win the case and costs have been paid. It is understandable in those circumstances that the instructing solicitor will not want to pay for the medico-legal report until they have been paid, or at least delay the payment of the report, for as long as possible.
Some cases can take years to settle so without a clear agreement on when they will be paid, doctors who deliver their invoice for the report when the report is provided may be required to pay tax on the invoiced amount many years before payment is actually received. This could involve the doctor arranging loans to cover the tax or paying it out of their own resources. To avoid situations like these, doctors should implement credit control systems such as that provided by MAPS Medical Reporting.
What is credit control?
A credit control system ensures that both parties understand when they will be paid and when they will have to pay. This avoids the necessity of finding finance to fund shortfalls in income when payments are not received when expected.
Read on to find out more about credit control and how MAPS Medical Reporting can help.
Why do you need a credit control policy?
As a doctor, by having a credit control policy you can ensure that you know when you will be paid for the work that you do and make sure that your cash flow allows you to pay any tax bills promptly. You’ll also be able to avoid the necessity of arranging loans when the tax bill on an invoice you have sent arrives before you receive payment for the work done.
What is the process of credit control?
At MAPS Medical Reporting, when we instruct a doctor to prepare a report on behalf of a claimant’s solicitor, we agree a period within which the doctor will be paid. This gives the medical expert the confidence of knowing when they will be paid and allowing them to arrange their tax affairs accordingly.
We can delay the time the solicitor and claimant have to pay the invoice for the medico-legal report. This means that the solicitor won’t be pressurised to pay for the report until the agreed date.
How can you make sure you are paid on time?
As a doctor, by using MAPS Medical Reporting, you will avoid the problems of chasing solicitors for payment with all the work and uncertainty this involves. Using our size and experience, we ensure that we have already agreed terms with the claimant’s solicitors and we will pay you within the period we have agreed with you without the need to contact the claimant’s solicitors.
Stephen Hughes, consultant in Emergency Medicine and member of MAPS’ expert panel, says: “I’ve worked alongside MAPS for more than 20 years now and have always received payment in a timely manner – the process of payment dates is watertight and it’s refreshing to work with an MRO that sticks to the promised payment schedule.”