How to Improve Patient Collections in Medical Practices
Rising deductibles and shared cost plans have made patient payments a larger part of medical practice revenue. Unpaid balances often result from gaps in upfront communication, insurance verification, and follow-up processes. Knowing How to Improve Patient Collections in Medical Practices helps reduce payment delays, control aging accounts, and create clearer billing expectations.
This blog highlights structured, system-based strategies that support faster patient payments and more consistent collection results.
Table of Contents
Collect Payments at Check-In or Point of Service
Point-of-service collections supported by practice management systems (PMS) such as Epic Resolute or AthenaCollector allow staff to request copays and balances before or immediately after visits. POS collection reduces outstanding balances by up to 50% and directly addresses patient responsibility after insurance while the visit is still active.
Train Front Desk Staff to Communicate Balance Responsibility
Front desk teams should use standardized scripts built into revenue cycle management (RCM) platforms. Training modules and role-based access tools help staff communicate balances within 30 seconds per interaction, which helps improve patient payment collections without creating confusion.
Design Clear and Informative Patient Statements
Well-structured patient billing statements generated through systems like Waystar or Kareo should include CPT codes, service dates, prior payments, and due dates. Clear formatting reduces billing inquiries by 25%, supporting smoother patient billing and collections.
Implement Consistent Follow-Up Programs for Unpaid Balances
Automated follow-up schedules built into AR Workflow Automation tools trigger reminders at 7, 14, and 30 days. These systems help manage patient collections in healthcare without manual tracking, improving response rates across aging buckets.
Offer Flexible Payment Arrangements and Plans
Payment plans configured within billing software allow installment schedules over 3, 6, or 12 months. These plans reduce write-offs and help patients complete payments without defaulting.
Provide Accurate Cost Estimates Before Care
Payment plans configured within billing software allow installment schedules over 3, 6, or 12 months. Clear estimates combined with structured payment options support How to Improve Patient Collections by reducing write-offs and helping patients complete payments without defaulting before care begins.
Enable Online and Mobile Payment Options
Online patient payment portals integrated with billing systems allow card, ACH, and wallet payments. These portals shorten collection cycles by 10–15 days and support faster digital patient payments without staff involvement.
Send Electronic Statements and Reminders
Electronic delivery through E-Statement Distribution Platforms improves visibility. Open rates exceed 60%, compared to under 20% for mailed notices, accelerating payment action and reducing delays.
Verify Insurance Eligibility Before Visits
Insurance eligibility verification using Real-Time Eligibility (RTE) systems confirms coverage, deductibles, and copays 24–72 hours pre-visit. This step prevents billing disputes and supports smoother payment discussions.
Simplify Payment Processing With Multiple Methods
Providing diverse patient payment options healthcare consumers prefer—credit cards, ACH, mobile wallets—through Unified Payment Gateways reduces abandoned payments and shortens checkout time.
Segment Accounts Based on Likelihood to Pay
How to Improve Patient Collections becomes easier when accounts are segmented using Predictive Payment Scoring Models. Smaller balances receive automated outreach, while high-risk accounts receive direct follow-ups, aligning with medical billing best practices.
Monitor and Measure Collection Performance
Key metrics tracked through Revenue Analytics Dashboards include Days in AR, collection rate, and patient balance ratio. Reviewing these metrics monthly shows where adjustments are needed to improve outcomes. Trying to maximize patient billing and collections? Check this guide for proven steps.
Patient Collection Benchmarks in Medical Practices
Common Challenges Medical Practices Face With Patient Billing
Billing delays often result from recurring operational gaps that affect payment timelines. Understanding How to Improve Patient Collections requires identifying common billing challenges that lead to confusion, rework, and unpaid patient balances.
Unclear Patient Balances After Insurance
Many patients do not understand what they owe once insurance pays. With high-deductible plans, patient responsibility after insurance can exceed $1,500 per visit. When balance details are not clearly communicated, payment delays increase and accounts often move past 45 days in AR.
Late or Missing Insurance Verification
Incomplete insurance eligibility verification leads to claim denials and partial payments. Practices that verify coverage less than 24 hours before visits face higher rework rates and billing delays, creating unexpected balances that patients are not prepared to pay.
Confusing Billing Statements
Statements filled with codes and unclear line items slow payments. When patient billing statements lack clarity, billing inquiries rise by 20–30%, increasing staff workload and extending payment timelines.
Inconsistent Balance Follow-Ups
Without automated follow-up schedules, unpaid balances age quickly. Accounts that pass 60 or 90 days without reminders are significantly harder to collect, reducing overall payment recovery rates.
Limited Patient Payment Options
Practices relying on paper billing or phone payments see slower response times. Patients expect digital and flexible options, and limited payment access increases abandonment and delays in payment completion.
Expanding digital channels is a core part of effective Patient Collection Strategies that support timely patient payments.
How Technology Supports Patient Payment Collection
Technology helps medical practices manage patient payments by reducing manual billing work and improving visibility into patient balances. Automated systems shorten collection cycles by 15–25% and support consistent communication.
Many hospitals rely on advanced billing platforms recognized among the Best Patient Collections Solutions for Hospitals because they centralize billing, payments, and performance tracking.
Key technology components include:
Revenue Cycle Management (RCM) Systems - Centralize billing, payment tracking, and aging reports in one dashboard.
Eligibility and Cost Estimation Tools - Verify coverage and estimate patient balances 24–72 hours before visits.
Digital Statements and Reminders - Email and SMS delivery increases open rates above 60%, compared to paper billing.
Integrated Payment Gateways - Support cards, ACH, and mobile payments with automatic posting to accounts.
Analytics Dashboards - Track days in accounts receivable and collection rates for ongoing review.
Tips to Support Better Patient Collections in Medical Practices
Consistent patient payment results depend on how well billing workflows are executed across front-desk, billing, and follow-up teams. Applying targeted collection tactics helps medical practices reduce aging balances and maintain predictable payment timelines.
Collect copays, deductibles, and prior balances during check-in using POS systems
Confirm patient responsibility after insurance 24–72 hours before visits
Generate patient statements within 48 hours of claim adjudication
Schedule automated payment reminders at 7, 14, and 30 days past due
Enable card-on-file payments for recurring or installment balances
Segment patient balances under $200 for automated follow-ups
Escalate balances over 60 days to direct outreach workflows
Monitor days in AR and patient balance percentage on a monthly basis
Find Out How to Improve Patient Collections in Your Practice
Improving payment outcomes requires consistent workflows, clear communication, and the right billing support. Understanding How to Improve Patient Collections helps medical practices reduce aging balances, improve payment timelines, and maintain steady revenue.
Partnering with the Best RCM Service Company can provide the tools, expertise, and automation needed to strengthen patient billing processes. Contact MBW RCM to learn how the right revenue cycle strategy can support better patient payment results for your practice.
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