Traditionally, physicians have accepted collections as part of doing business and will ignore unpaid balances to provide needed patient care. Most doctors know they need to take a business-centric approach, but don’t know where to begin or are afraid of the costs. Since 2023, many credit-reporting firms have removed unpaid medical debt of less than $500 and patients are catching on. Asking patients to pay their medical bill after the services have been provided is now more difficult when fewer financial consequences are at stake for the patient. Here’s what the most successful practices use as strategies to make patient collections less of a burden while improving cashflow and revenue.
Patient Collections Don’t Have to be Complex
Sending statements is a cost sponge. Practices need to address major collection barriers and realize most patients don’t understand their health insurance benefits. Untrained office staff adds to the problem.
The No Surprises Act (NSA)
The NSA is about informing people of what their costs will be upfront, and then making collections happen. Patient education regarding medical billing is not optional, it’s the law. Medical practices must provide good faith estimates of costs. To do this, they can use fee schedule-based estimator tools that are built into their practice management software, or more advanced tools to provide service-specific benefits.
NSA also states that independent doctors who orchestrate care with other medical professionals may be responsible for providing patients with good faith estimates for all practitioners involved in the patient’s care. For example, a broken arm may require the ER fee, an orthopedist, a radiologist, anesthesiologist, or surgeon. Collection of patient responsibility becomes easier the more you know and educate.
Staff Must Be Trained to Ask for Money
Up-front collections may seem pushy and different from what patients have become accustomed to. Staff must be trained to let patients know why they are asking for the money. Patients do not like balance bills, they like clarity. When polled most patients state they dislike wondering when, if, and how much the bill will be. They find it more stressful than paying at the time of service.
Having a well-trained confident staff is important. Put the time into role model training. Walk staff through potential patient interactions and practice giving clear information to patients on whether the payment is due in full at the time of service, or if they can expect an additional bill.
Staff should be up to date on deductibles, co-payments, and out-of-pocket maximums to inform patients. In addition, they should understand how insurance benefits work. Some patients might have a deductible that doesn’t apply to an office visit, only to a hospital visit. As a result, the patient may not owe a co-payment. Other insurances require a co-pay. Staff should be able to tell the patient. “This is the co-pay your insurance requires, there may be additional billing depending on the services today.” Alternatively, if true, “Your insurance only requires a co-pay for today and that will cover your services.” Or “Your insurance doesn’t require a co-pay for this type of service.”
Many physicians do not invest in this type of training and software because they feel that the front desk turnover is high. Training the office manager or digitizing training to give materials to learn your process can easily educate new hires. Partnering with a reputable revenue cycle management company (RCM) can also assist in staff training.
Create Easy to Understand Language about Payments and Policies
Create policies in digital and paper formats to let patients know when full or partial payment is due. Provide your policy to patients prior to check-in and ask them to complete paperwork online before they arrive. Some patients will forget, or simply avoid it.
Offering incentives can help. Some examples might be requiring patients to arrive 30 minutes early if paperwork isn’t filled out ahead of the visit. “Help us keep on time by being ready and avoid the wait”. “We ask that patients who have not pre-registered arrive 30 minutes early”. If that is your policy, make certain your staff stays on time as much as possible, as being late makes patients head for the door, particularly when incentives were offered.
Front staff and doctors should be prepared to answer questions, including “Why do I have to pay today?” or “What if I can’t pay today”? Keep your policy well known among your staff and provide consistent answers. If patients cannot pay at time-of-service physicians will need to determine whether they will still be willing to see them. One way to answer is to simply say “If you’re not ready to pay today, we can reschedule your appointment to a time that is more financially convenient”. Again, do not be afraid to ask for the money. Be sure to provide options for financial assistance or financing.
Put It on the Pad
Pre-service or at the point of service collection is best. The recent uptick in handing a patient a digital tablet at check-in to garner patient information is becoming the norm. Asking for the co-pay at that time is a brilliant digital tool. For many people, this process is akin to ordering a product online, like food or goods, and they have no problem with using a credit card on the spot. When patients are encouraged to pre-register before checking in, via a link or patient portal, the co-pay information and estimates for care can be pre-loaded into the software and can be used to simply confirm a few pieces of information and collect authorization signatures while the receptionist copies insurance cards and ID. During this time the client pays the co-pay and returns the tablet back to the receptionist. The timing is usually great, provided the patient can use the tablet and the waiting room isn’t overfilled. This process has the bonus of keeping a patient occupied while waiting. Make sure to keep the software very user friendly.
Collection Agencies are Costly
Collection agencies are always an option, but they should be a last resort, as they come at a hefty price. Those earned dollars could be better spent on updating pre-service collection. Collections cost a minimum of 30-40% in lost revenue. You’re better off spending that money on new tech and training.
Patient Payments have Evolved
Now is the time to improve your collections process. Health care organizations need to compensate, train staff and invest in new technology to support the services they offer patients. Reimbursement for health care services is essential to sustaining high quality care for their patients and remaining financially solvent. Virtual OfficeWare Healthcare Solutions can help turn your team into tech savvy collection experts. Powered with AdvancedMD software, we can help you streamline your collection process, retain patients, and improve your bottom line. Contact us today for a no-obligation demo or if you prefer, schedule a consultation with one of our educated, friendly staff to start solving your collection issues today.
