The health and dental industries face significant challenges with payroll tax compliance, particularly when it comes to managing service fees from contracted practitioners. Traditional methods often require practices to establish separate bank accounts in the name of each contracted doctor, leading to cumbersome administrative tasks and increased costs.
To address these issues, Octet has developed Points4Pay. This innovative payment solution not only streamlines the collection of service fees but also accelerates cash cycles and rewards practitioners with frequent flyer points.
The healthcare compliance challenge
Payroll tax compliance has become a focal point for general practices. As a result, many practices are restructuring how they receive patient fees and service fees from their contracted doctors. The current structure often involves:
- Additional tasks for admin staff to manually set up direct debit cycles for each doctor, resulting in higher administrative costs.
- Requiring doctors to open new, separate bank accounts, often with the same bank, which can be inconvenient.
- Raising questions about whether the financial relationship is “arm’s length” and how it may be viewed in the future.
These challenges highlight the need for a more efficient and compliant solution.
Introducing Points4Pay
Octet’s Points4Pay is a unique product tailored to the needs of the health and dental industries. It offers a seamless way to manage service fees within a practice, providing additional working capital for doctors and enabling them to earn uncapped frequent flyer points based on their service fee spend.
Key benefits for practices
- Reduce Days Sales Outstanding (DSO): By accelerating service fee payments to your practice, Points4Pay helps reduce your DSO, improving cash flow and financial stability.
- Boost sales and increase retention: Offering a frequent flyer loyalty program to eligible practitioners can enhance retention rates and attract new talent.
- Save costs and reduce admin work: The easy-to-upload pay cycle reduces administrative burdens and associated costs.
- Strengthen relationships with Practitioners: Octet manages the service fee payments, paying the practice directly and collecting from practitioners, thus simplifying the payment process.
Key benefits for practitioners
- Access to pre-approved finance: Practitioners receive up to $50k in pre-approved finance, providing them with a pre-approved line of credit* and agreed number of credit days. This helps manage cash flow more effectively.
- Earn frequent flyer points: Service fee spending allows practitioners to earn frequent flyer points, which can be redeemed for flights and other rewards. This benefit not only adds value but also encourages loyalty to your practice.
How Points4Pay works
The process is designed to be straightforward and efficient:
- Pre-approval: Octet provides each practitioner with a pre-approved line of credit* linked to their service fee account.
- Service fee summary: Every cycle, practices provide Octet with a summary of service fee amounts due.
- Payment processing: Within 24 hours of uploading the summary, Octet pays the service fees to the practice.
- Credit days: Practitioners receive an agreed number of credit days, after which Octet will direct debit their nominated account.
- Frequent flyer points: Following the successful direct debit, practitioners receive their frequent flyer points.
Ideal for the entire industry
Points4Pay is suitable for:
- Medical Practices
- Dental Practices
- Veterinary Clinics
- Pharmacies
- Specialist Practices
Get in touch
Discover how Points4Pay can benefit your practice and your contracted practitioners. Register your interest or reach out to our team for more information:
Octet’s working capital finance solutions for the healthcare industry help by unlocking the opportunities in your supply chain. We also collaborate closely with commercial finance brokers across a wide range of industries. If you have clients who could benefit from Points4Pay or other supply chain finance solutions, such as Debtor Finance or Trade Finance, please contact us.
* Up to $50,000 in pre-approved finance is available for Practitioners who meet specific credit criteria. Larger facilities are available upon request, subject to a full credit assessment.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
