4 Proven Ways to Increase Your Patient Collections

One of the most common misconceptions about the healthcare revenue cycle is that out-of-pocket patient payments aren’t significant enough to impact your bottom line. As a result, many practices put all their focus and resources on collecting insurance payments and unconsciously neglect patient collections.

Patient copays make up as much as 30% of the average healthcare bill. For an area of the revenue cycle that providers and practice managers often relegate as a mere afterthought, increasing patient collections presents plenty of opportunities to maximize your revenue.

Increasing a practice’s profitability is a multifaceted endeavor. It means improving every stage of the revenue cycle to ensure that you never leave a single dollar on the table. That’s why you must put equal emphasis on improving patient collections as you would on streamlining your claims processing.

1. Automation is Key

The gaps in your payment collection workflow are likely caused by inefficient, manual processes. So the first step toward increasing patient collection is to automate your entire revenue cycle management.

Automated payment processing eliminates manual data entry and paper-based audits, reducing errors and your staff’s workload. Once the patient makes a payment, all records of that transaction are automatically recorded into the system. Thus, the process ends at the payment counter; no more manual filing of receipts or sending out paper statements.

To fully automate your payment collection, you need medical billing software with a complete set of billing tools. That’s where platforms like billrMD enter the picture.

A practice management and billing software, billrMD simplifies your revenue cycle to save you time and money. From payment processing to claims submission and monthly report audits, billrMD has all the tools you need to automate every stage of your billing cycle.

2. Utilize Online Payment Options

Patients are just as busy as you are, so naturally, they prefer to pay at their convenience. As a service provider, you must take it upon yourself to provide the most convenient payment options possible.

And when you think about convenience, “online” is almost always the first thing that comes to mind. According to recent data, 80% of patients prefer to pay their medical bills online. When you take away the burden of old-fashioned payment solutions from your patients, they are almost always likely to settle their dues.

Integrating an online payment portal with your practice website, in which patients can view and pay their bills, is vital in increasing patient collections. It eliminates geographical barriers in payment processing.

3. Accept Multiple Payment Methods

On top of online payments, patients prefer other payment methods, such as using cash or debit/credit cards. Thankfully, billrMD also supports credit card processing, so there’s no reason not to enhance your practice’s payment experience.

While it’s tempting to completely shift payments online, there are still patients who prefer to pay at the payment counter. So it’s crucial to offer other payment methods as well in order not to alienate a large chunk of your patient population.

4. Send Well-Designed, Easy-to-Understand Statements

Design matters when it comes to patient statements. Confusing statements often end up crumpled and unread, while well-designed ones get paid.

Make sure to pay attention to the way the information on your statements and invoices is laid out. Straightforward statements reduce confusion and late or default payments. Also, include your practice logo to help raise brand awareness.

Every Dollar Counts

Many practices across the country are still reeling from the effects of the pandemic. Combine that with the constantly changing regulations and the ever-increasing healthcare costs, collecting every dollar you’ve earned is more important now than ever.

Insurance payments and government grants still make up the majority of practice revenues. And while it’s easy to set patient collections aside to favor other payers, neglecting 30% of your potential earnings can still deal a considerable blow to your bottom line.

At a time when every penny counts, you should look to maximize every opportunity to earn rather than prioritizing more profitable channels over others.