Patient collections in healthcare have never been more complex. Patients face increasing financial constraints, while providers contend with insurance claim denials and regulatory changes. Due to these challenges of collections, healthcare organizations are at risk for payment delays and reduced cash flow.
To overcome these challenges of collections, healthcare organizational leaders must familiarize themselves with the root causes of payment barriers and create more efficient patient collection strategies.
Healthcare collections is the process of collecting payments from patients for medical treatment and services. For long-term financial health, organizations must set up robust systems to collect payments efficiently without compromising patient satisfaction.
Healthcare organizations are responsible for ensuring patients understand their financial obligations before providing care. Your organization can support patients by offering transparent pricing estimates and providing multiple payment options.
There are three key types of collections in healthcare:
Point-of-service collections in healthcare are the ideal approach. This strategy allows you to capture revenue up front and minimize the risk of default or payment delays. Conversely, post-service billing and follow-up add friction to your revenue cycle and can disrupt cash flow.
Overreliance on collections agencies can be particularly detrimental to your cash flow and profitability. While partnering with these agencies is sometimes necessary, you should strive to collect payments internally whenever possible.
When it comes to the key challenges of collections, healthcare organizations are facing the following barriers.
Health insurance companies are pushing costs back onto patients. They achieve this by raising deductibles, creating additional copay tiers, and increasing coinsurance amounts. Many patients struggle to pay these higher costs, which leads to delays in care and more bad debt.
Due to unclear pricing, patients often receive bills that they don’t understand. That’s why it's important to provide your patients with up-front cost estimates. However, these estimates must be accurate. Inaccurate estimates can erode patient trust and damage your reputation.
Claim denials and processing delays create gaps in your cash flow. These gaps can make it hard to manage your finances or cover your operating expenses.
Many providers rely on outdated manual methods to collect payments. This leads to administrative errors and inefficiencies. It also drives up administrative costs compared to automated processes.
The federal No Surprises Act mandates transparency in medical billing. Noncompliance can lead to fines and tarnish your reputation.
For more insights into these challenges and how to overcome them, download Let's Break Down the No Surprises Act eBook. This free resource from Rivet Health helps providers navigate their new role as debt collectors amid rising patient obligations.
Effective collections processes protect your cash flow and reduce financial stress on your practice. Patients who receive clear, up-front pricing will feel more positive about your practice as well. They are more likely to pay on time and may even develop loyalty to your providers.
Prioritizing point-of-service collections is one of the most practical ways to minimize unpaid balances. Collecting patient payments at the time of service also reduces the need for administrative follow-up and improves overall revenue.
Check out our on-demand webinar centered on collecting cash from Patient Pricing estimates, and learn more about the importance of collections in healthcare revenue cycle optimization.
When facing the challenges of collections, healthcare organizations should implement the following best practices.
Make it easy for patients to pay their bills without getting collections agencies involved. Offering flexible plans and accepting multiple payment methods increases the likelihood of on-time payments.
A patient payment estimator helps your team set clear expectations and reduces billing confusion. Patient Pricing from Rivet Health provides accurate estimates in seconds so that you can comply with the No Surprises Act and promote patient trust.
Automating the billing process reduces the administrative burden on your team and improves collections efficiency. You can also set up automated payment reminders to encourage consistent, on-time payments.
Make sure that your team members understand the latest payment policies and that they can explain these rules to patients. They should feel confident when educating patients about their financial responsibilities.
Review your payment policies and verify that they comply with state and federal regulations. Be proactive about compliance in order to avoid fines and protect your reputation.
Want to learn more about how to improve your collections processes? View our free on-demand webinar, Accelerating Patient Payments, and explore additional best practices for overcoming collection challenges.
The challenges of collections healthcare organizations face are not insurmountable. The following steps can help you improve your collections processes and cash flow:
Overcoming collection challenges begins with the right tools. Rivet Health provides an entire suite of solutions designed to improve payment processes and optimize your organization’s financial health.
For instance, Patient Pricing provides accurate cost estimates to support point-of-service and pre-service collections. Learn more about Patient Pricing, the patient payment estimator from Rivet Health.
Effective collections are vital for maintaining your practice’s financial health. Rivet Health provides solutions that:
Are you ready to overcome the challenges of collections? Healthcare software solutions from Rivet Health can optimize your collections workflows and remove friction from the patient journey.
Explore our revenue cycle management solutions and upgrade your collections workflows. Schedule a demo with Rivet Health.