How to improve collection at your practice?

Collections are intimidating but vital for a practice to survive. Every practice manager knows that accounts receivable is one of the crucial priorities for practice survival. Yet, many practices are constantly struggling with unreliable cash flows.

The struggle of dealing with self-pay patients and insurance companies has become exasperating. As a result, practices continuously fight on various fronts to avoid struggling with cash flow targets. 

Since 2000, the hospitals in the United States have incurred more than $702 billion in uncompensated care expenses, as per the AMA. In the last decade, payments have changed; patients are continuously overwhelmed by the rising costs, including expensive medical bills, higher deductibles, and out-of-pocket expenses. 

With the increasing financial responsibility of the patients, providers have to pin their focus on payment balances and patient collection.

Medical billing and collection challenges since the pandemic

Despite restoring in-person visits and elective procedures, many practices are still dealing with lower patient registration traffic and, as a result, lower practice profitability.

In the early months of 2020, when COVID-19 ravaged the world, patient volume dropped by 60% at ambulatory practices. Now that the practices register rebounds in patient volume, it might take a while for the numbers to go back to pre-pandemic levels. 

Practice revenues also suffered due to the pandemic, and many practices are still coping with the aftermath. As a result, it has become paramount for practices to maintain a healthy cash flow to survive in the longer run.

Tips to enhance collection at practices

1. Collect contact information and insurance details before appointments

When a patient calls a practice for an appointment, the front desk staff should collect complete information. You can give the patients an option to share the details via email to reduce the chance of error. 

The patient portal functional at your practice should be able to collect and accommodate this information. In addition, correct insurance and contact details allow the staff to verify the coverage and aid the collections process efficiently.

2. Verify insurance beforehand

Another strategy to improve your practice’s collection is performing insurance verification before a patient visits you. Your staff should verify the insurance 1 or 2 days before the scheduled appointment. It allows adequate time for the insurance company to respond on eligibility and payment responsibility.

Since different treatments have different copayment amounts, your staff must go above and beyond verification by reviewing the scheduled service and the patient’s insurance to ascertain what they are responsible for at the time of their appointment.

3. Implement a policy on payment arrangements

Practices with friendly payment policies can expedite collections at the practices. For example, allowing patients to make time-based payments or offering discounts may drive the party responsible for the debt to pay it rather than letting it go unpaid. This task is more crucial if you work with the uninsured and underinsured.

Patients can enquire about their accounts and request time-based arrangements through a structured plan. Front desk staff should disclose the payment arrangement policy to the patients liberally when services are given to the patients and in any additional written or verbal communication with the provider.

4. Keep multiple payment options available

Offer a range of payment methods, such as cash, credit/debit card, or cheque, to increase the likelihood of collecting amounts at check-in. Including a simple and easy-to-use online payment mechanism in your patient portal can also help with patient payments.

5. Facilitate autopay

Request patients to retain a credit card on file that permits you to charge them up to a certain dollar amount for unpaid post-insurance liabilities. 

Notify them through text or email when a payment is due and allow them to verify their statement electronically before running the payment. That will keep the patients posted about when and why payment will be made and assist them with adopting processes. 

Before leaving the provider’s office, a bill should be printed and signed to ensure that the patient understands financial commitments. This number may fluctuate, but the patient will have a figure in mind before leaving the office.

6. Make follow-up a part of the collections process

Perseverance is necessary to boost collections. Create a proactive plan for contacting patients who do not pay on time, and provide a script for your employees to follow. Your team has to be prepared to request full payment, discuss payment choices, and, if necessary, offer a payment plan.

7. Boost your cash flow with a partnership

The medical billing collections process does not have to be frustrating. Leap towards excellent financial stability by partnering with Capline. Our experienced team is known for exemplary healthcare billing services, and our clients can vouch for that. 

Let us rework your denials and rejections, send patient statements, manage medical billing functions, and stop letting patient collections steal your focus from patient treatment.