Can Dental Bills Be Sent to Collections?

Key Takeaways

• Dental bills can legally be sent to collections after 90 to 180 days of nonpayment, following the same debt collection regulations as other consumer and commercial debts under the Fair Debt Collection Practices Act.
• Professional collection agencies charge contingency fees typically ranging from 10–25% of recovered amounts, meaning dental practices only pay when the agency successfully collects on their behalf.
• Clear financial policies, point-of-service collections, and early communication about payment expectations significantly reduce the likelihood of accounts requiring third-party collections intervention.
• Partnering with specialized collection agencies like Southwest Recovery Services helps dental practices maintain patient relationships while recovering revenue, as they understand the unique sensitivities of medical billing disputes.

The Dental Billing Process

When patients schedule appointments, dental offices collect demographic information and insurance details. This initial verification step determines coverage levels, benefits, and estimated out-of-pocket costs. Accurate information at this stage prevents billing surprises later and reduces disputes that could lead to nonpayment.

During the dental visit, dentists document all treatments, procedures, and clinical notes necessary for accurate billing and insurance claims. Once treatment is complete, the office submits claims to insurance companies with appropriate procedural codes and supporting documentation. Insurance payments typically post within 30 to 45 days, though complex cases may take longer.

After insurance payments are received and posted, dental offices bill patients for remaining balances, including copays, deductibles, and non-covered services. Most practices expect payment within 30 days of billing, though some offer payment plan options for larger balances. 

This is where many collection issues begin, as patients may dispute charges they believe should have been covered by insurance, face financial hardship, or simply overlook bills among other obligations.

Yes, Dental Bills Can Be Sent to Collections

The straightforward answer is yes, dental bills can absolutely be sent to collections when patients fail to pay after reasonable attempts at direct communication and resolution. Dental practices have the same legal rights as other creditors to pursue unpaid debts through third-party collection agencies.

Most dental offices follow a progressive communication protocol before referring accounts to collections. This typically includes multiple billing statements, phone call reminders, and sometimes final notice letters. When these internal efforts fail after 90 to 180 days, referring the account to a professional collection agency becomes a practical necessity.

Why Dental Practices Use Collection Agencies

Outsourcing collections serves several important purposes for dental practices. Collection agencies bring specialized expertise, resources, and persistence that busy dental offices often cannot maintain internally. Professional collectors understand debtor psychology, compliance requirements, and negotiation strategies that maximize recovery while minimizing legal risk.

Beyond the practical aspects, using a collection agency allows dental staff to focus on patient care rather than spending valuable time pursuing overdue accounts. Collection agencies also have tools that dental offices typically lack. These include skip-tracing technology to locate patients who have moved, credit bureau reporting capabilities that encourage payment, and established legal partnerships if litigation becomes necessary.

Timeline for Sending Dental Bills to Collections

While practices vary in their specific policies, industry standards suggest certain timeframes. Fresh accounts under 90 days old typically remain with the dental practice for internal collection efforts. These newer debts have higher recovery probabilities and respond well to direct communication from the provider.

Accounts aged 90 to 180 days represent the optimal time for collection agency referral. At this point, internal efforts have been exhausted, but the debt hasn’t aged so much that recovery becomes extremely difficult.

The Dental Collections Process

When a dental practice refers an account to a collection agency, a structured recovery process begins. This multi-stage approach balances effective debt recovery with patient relationships and regulatory compliance.

Initial Contact & Debt Verification

Collection agencies typically initiate contact within days of receiving an account referral. The first communication includes verification of the debt amount, creditor information, and patient rights under the Fair Debt Collection Practices Act.

Multi-Channel Communication & Outreach

Following the written notice, agencies begin phone outreach using multiple communication channels. Professional collectors trained in healthcare debt understand that dental bills often involve misunderstandings about insurance coverage or financial hardships rather than intentional avoidance.

Payment Solutions & Arrangements

Successful collection agencies focus on finding workable solutions rather than aggressive demands. This might include payment plans that break larger balances into manageable monthly installments, settlement offers for reduced amounts when patients face genuine financial hardship, or navigating insurance appeals for disputed coverage issues.

Escalation & Credit Reporting

If patients fail to respond to initial contacts or refuse reasonable payment arrangements, agencies may escalate their efforts within regulatory guidelines. This can include reporting the delinquent account to credit bureaus, which can remain on credit reports for up to seven years from the date of first delinquency.

Legal & Regulatory Considerations for Dental Collections

Dental debt collection operates within strict legal frameworks designed to protect consumers while allowing legitimate debt recovery. The Fair Debt Collection Practices Act governs how collection agencies can pursue unpaid debts, prohibiting harassment, deceptive representations, and unfair practices. 

While these regulations primarily govern third-party collection agencies, dental practices engaging in their own collection efforts must also observe similar standards to avoid legal liability.

The statute of limitations for dental debt varies by state but typically ranges from three to six years, with four years being common. This represents the timeframe within which a creditor can file a lawsuit to recover unpaid debt.

Dental practices must also balance debt collection efforts with patient privacy obligations under HIPAA. Professional collection agencies specializing in healthcare debt understand these privacy requirements and structure their communications accordingly.

Best Practices to Minimize Collection Needs

While some accounts will inevitably require collection agency involvement, dental practices can implement strategies that significantly reduce the volume of unpaid bills reaching this stage. Some of these practices include: 

• Establish Clear Financial Policies: Dental practices should provide written financial policies that patients acknowledge before treatment, including payment timelines and when accounts may be referred to collections.
• Maximize Point-of-Service Collections: Collecting copays, deductibles, and patient portions during the appointment visit significantly improves cash flow and reduces billing complexities.
• Implement Timely Billing & Follow-Up Systems: Send patient bills within seven to ten days after insurance payments post. Establish a consistent follow-up schedule with a friendly reminder at 30 days, a firmer second notice at 60 days, and a final notice at 90 days, indicating potential collection referral.
• Offer Flexible Payment Arrangements: Dental practices that offer in-house payment plans for larger balances often recover more money than those that maintain rigid payment-in-full requirements.
• Maintain Detailed Documentation: Thorough records of all billing communications, payment arrangements, and collection efforts provide essential protection if disputes escalate to litigation or regulatory complaints.

Why Partner with Southwest Recovery Services for Dental Collections

Dental practices need partners who understand both debt recovery and the unique sensitivities of healthcare billing. Southwest Recovery Services is the perfect partner as we bring over 20 years of specialized experience helping dental practices recover unpaid accounts while maintaining patient relationships and compliance standards.

We understand that dental patients often face genuine confusion about insurance coverage, financial hardships, or billing disputes that require empathetic communication rather than aggressive tactics. Our relationship-preserving approach balances persistent professionalism with diplomatic outreach, recognizing that today’s collection account might be tomorrow’s returning patient.

Dental practices only pay when we successfully recover funds, with fees typically ranging from 10–25% of collected amounts, depending on account age and complexity. Our veteran collectors bring specialized knowledge of healthcare billing complexities, insurance processes, and patient communication strategies that general collection agencies often lack. 

We also maintain compliance-first operations that adhere to all Fair Debt Collection Practices Act requirements and healthcare privacy regulations, protecting dental practices from legal exposure.

With AI-guided tracking software that monitors every promise to pay across phone, email, text, and mail, we provide dental practices with transparent reporting and real-time updates on collection progress. For dental practices struggling with unpaid bills that distract from patient care and strain cash flow, partnering with SWRS provides professional collections results without the administrative burden or reputational risks of handling collections internally.

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Frequently Asked Questions (FAQs)

Can dental offices legally send bills to collections?

Yes, dental offices have full legal authority to send unpaid bills to collection agencies. Dental services represent legitimate debts. 

When patients fail to pay after reasonable internal collection efforts, referring accounts to professional collection agencies is both legal and common practice.

How long before a dental bill goes to collections?

The typical timeline for dental bills going to collections ranges from 90 to 180 days after the original billing date, though individual practice policies vary.

Will unpaid dental bills hurt my credit score?

Yes, dental bills sent to collections can negatively impact credit scores once the collection agency reports the delinquent account to credit bureaus. 

Collection accounts can remain on credit reports for up to seven years from the date of first delinquency, potentially lowering credit scores, depending on prior credit history.

What are the costs for dental practices using collection agencies?

Professional collection agencies typically charge contingency fees ranging from 10% to 25% of successfully recovered amounts, meaning dental practices only pay when the agency collects. 

Newer accounts under 90 days old usually incur lower fees of around 10% to 15%, while older accounts over 180 days may carry rates of 20% to 25% due to the increased difficulty of collection.

Why should dental practices choose Southwest Recovery Services for collections?

Southwest Recovery Services stands out with more than 20 years of specialized healthcare collections experience, giving us a deep understanding of the billing complexities and patient sensitivities that dental practices face every day.

We operate exclusively on a contingency-based model with no upfront costs, so dental practices only pay when SWRS successfully recovers funds. Our relationship-focused approach emphasizes respectful, professional communication that preserves future patient relationships while effectively recovering past-due accounts.

*Note: Recovery rates mentioned are for general reference only and not guaranteed. Actual results vary by account and industry. Contact Southwest Recovery Services for a customized quote.