Managing small-balance patient accounts is a widespread challenge in today’s healthcare sector. The effort to recover these small balances often becomes cost-prohibitive, as the resources needed frequently surpass the actual debts owed.
Administrative costs account for 15% to 25% of total national healthcare expenditures per year, with billing one of the primary drivers of those costs.1 At a practice-specific level, billing resources spent trying to collect small balances severely impact a practice’s financial health and lead to inefficiencies and cash flow issues.
To address these challenges, healthcare practices must adopt strategic approaches to enhance patient payment processes, maintain administrative efficiency, and sustain healthy cash flow.
Three Strategies to Enhance Patient Payment Processes
Adopting technology-based strategies is crucial for managing small patient balance collections effectively. Here are three key strategies:
- Optimize Recovery with Technology
Leverage technology to enhance patient billing efficiency. Digital patient self-pay portals are essential, facilitating easy and quick payments while ensuring data protection. These portals act as the central hub for patient billing, allowing patients to view bills, make payments, and set up payment plans conveniently, especially from mobile devices. Integrating these portals with automatic payment reminders can reduce missed or late payments, significantly enhancing patient payment processes. - Implement Omnichannel Communication
Effective billing communication should adapt to each patient’s preferred method, including text messages, emails, online portals, or call centers. This approach ensures patients fully understand their bills, increasing the likelihood of timely payments. Tailoring communication to fit patient preferences not only boosts satisfaction but also improves revenue recovery through enhanced patient payment processes. - Foster Patient-Friendly Billing Practices
Clear, understandable billing statements are critical for fostering patient-friendly billing practices. When patients comprehend their bills, they manage their finances better and can prepare for out-of-pocket costs. Committing to transparency and patient-centric billing enhances satisfaction and builds trust.
Tackling Small Balance Accounts with Comprehensive Strategies
Implementing tech-based solutions in a bustling billing office can be daunting. Many practices struggle to manage patient pay efficiently, particularly when it comes to small balances. Collaborating with patient-pay experts like PatientFocus can relieve this burden, equipping your practice with advanced tools to maximize recovery and create efficient processes that benefit both your practice and your patients. Our comprehensive solution offers scalable ways to tackle high volumes of small patient balance collections, empowering practices to enhance cash flow and optimize operational efficiency.
Ready to transform your small patient balance collections? Contact us to learn how PatientFocus can revolutionize your patient billing efficiency and enhance your financial health.
Sources:
- (2021, October 20). Administrative Expenses in the US Health Care System. Why So High? JAMA. https://jamanetwork.com/journals/jama/fullarticle/2785479#google_vignette