Improving Patient Payment Collections: Strategies for Success

As high-deductible health plans and rising out-of-pocket costs shift more financial responsibility to patients, healthcare providers are facing a growing challenge: getting paid. Payment delays strain cash flow, disrupt operations, and can ultimately affect the quality of care. At the same time, confusing billing processes and limited payment options leave patients feeling frustrated and overwhelmed.

Improving patient payment collections isn’t just about recovering revenue. It’s about building trust, reducing administrative burdens, and ensuring patients can access care without added financial stress. When patients are informed about expected costs and have a basic understanding of their financial responsibilities, they are more likely to plan for and meet those obligations. Enhancing financial literacy through clear, upfront communication empowers patients to take control of their healthcare expenses. By reimagining the payment experience through transparency, flexibility, and technology, providers can drive better outcomes for both their bottom line and the patients they serve.

The growing burden on patients and providers

As healthcare costs continue to rise, patients are taking on a larger share of financial responsibility through higher deductibles and out-of-pocket expenses. While insurers still cover the bulk of medical costs, the portion patients must pay directly has increased significantly, creating new challenges for providers. Many healthcare systems still rely on outdated billing practices that make it difficult for patients to understand, manage, and pay their bills in a timely manner.

Common barriers to collections  

Patients often face significant barriers when it comes to paying their bills. A lack of price transparency, confusing statements, and limited payment options all contribute to payment delays. While the No Surprises Act has improved cost clarity for uninsured patients, those with high-deductible health plans are often still left in the dark about their financial responsibility. This lack of clarity creates frustration and uncertainty. Surveys show that 65% of patients find medical bills confusing, which diminishes satisfaction. In fact, a 2024 Newsweek survey revealed that over 40% of patients left negative reviews due to billing issues, and 38% switched providers because of them.

The consequences of poor collections

Rising bad debt is a critical concern for healthcare providers. When patient balances remain unpaid, revenue is delayed, and financial sustainability is compromised. This not only affects the patient experience, driving some to avoid future care, but also creates significant challenges for CFOs. Mounting bad debt directly impacts their ability to make strategic investment decisions in areas like clinical care, facility improvements, and staff compensation. To mitigate these risks, providers must embrace a more innovative, patient-centered approach to billing and collections. Supporting patients with financial guidance improves their ability to pay.  

Strategies for improving collections

Measuring success and continuous improvement

Improving patient payment collections requires ongoing monitoring and refinement. Tracking key performance indicators lets organizations see progress and identify areas for further investigation or optimization.  Metrics to monitor include:

• Repeat caller reduction – Ensure that patients do not have to make multiple calls to resolve billing issues, improving efficiency and patient satisfaction.
• Collection rate improvement – Measure the percentage of patient payments collected versus billed amounts.
• Reduction in bad debt write-offs – Track how much uncollected revenue is being written off due to non-payment.
• Patient satisfaction scores related to billing – Use surveys and feedback to gauge whether billing improvements are reducing frustration.

Continuous training and process refinement

Even the best strategies fail if staff aren’t equipped to implement them. Regular training helps teams understand policies, to confidently discuss costs, and effectively utilize technology. Process reviews help identify bottlenecks and inefficiencies, allowing for continuous improvement.

Leveraging patient feedback

Patients are the best source of insight into what works. Actively seek feedback to refine billing statements, payment options, and communication strategies. A patient-centric, technology-driven approach is necessary for long-term financial health, and partnering with the right experts can fast-track that success.

Improving patient payment collections is not just a financial necessity; it’s an opportunity to build stronger relationships with patients. By focusing on transparency, flexibility, and technology, providers enhance the payment experience. It’s about fostering trust, simplifying processes, and helping patients confidently navigate their financial responsibilities. Adopting these strategies makes a difference in both operational success and patient satisfaction. A proactive, patient-centric approach to payment collections lays the foundation for a healthier, more financially secure future.

Photo: KLH49, Getty Images

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