Read on as we discuss the importance of payment collections in healthcare and strategies to turn billing challenges into payment success.
Handling payment collections is a tough part of running a medical practice. It affects revenue and patient satisfaction. It's also a critical process impacting a practice's financial health, yet it often gets overlooked in daily operations.
Healthcare providers often face several billing challenges that interfere with their ability to collect timely payments. Delays, patient confusion, and administrative tasks can make it feel like an uphill battle. It's essential to understand billing, stay current with industry trends and regulations, and use technology-driven solutions to overcome these challenges.
Today, we'll discuss the importance of payment collections in healthcare and share strategies to turn billing challenges into payment success.
The Cost of Inefficient Billing and Payment Collections
Poor billing practices account for a substantial portion of medical practice expenses, with manual tasks, patient misunderstandings, and delayed payments contributing to these expenses. These expenses can significantly impact a practice's bottom line, leading to decreased profitability and possible instability.
Common Issues Encountered by Practices:
- Administrative Burden: Manual tasks like preparing and sending mailed bills or making calls to patients create a heavy workload for staff. Staff may eventually begin to feel overwhelmed by the administrative responsibilities, which can result in burnout and high turnover rates.
- Patient Misunderstandings Regarding Costs: Errors in billing and a lack of transparency confuse and frustrate patients about their medical expenses. Patients may also receive unexpected bills that do not clearly outline the services provided or why certain charges were applied.
- Delayed or Missed Payments: Not offering patient financing or flexible payment options often results in delayed or missed payments. This can lead to cash flow issues for healthcare providers, making it difficult to manage costs and invest in necessary resources.
Inefficient billing and payment systems also have a dual negative effect. First, they reduce practice revenue by not collecting the full payment owed for services provided. Second, they negatively impact patient satisfaction. Complicated billing procedures and aggressive payment collections can also damage the patient-provider relationship, leading to negative patient experiences and even causing patients to seek care elsewhere. This shows the need for a billing and payment system that is simple, transparent, and patient-friendly.
Key Strategies to Master Payment Collections
An analysis showed that patient collections decreased from 54.8% in 2021 to 47.8% in 2022 and 2023. This means patients are paying medical practices less for their services. Several factors contribute to this decline. One reason is that patients bear a larger portion of their medical expenses. The other is that more patients find it difficult to pay their bills in full.
However, medical practices can adopt modern strategies to master payment collections by using solutions and resources offered by providers like BillFlash:
PreBill
One of the most efficient ways to master payment collections is by streamlining workflows through pre-visit billing. Services like BillFlash PreBill provide an excellent foundation for this. With BillFlash PreBill, a link with pre-visit charges is sent before the actual bill is created, reducing confusion and allowing patients to prepare their finances in advance.
eBills via Text and Email
BillFlash sends eBills via text and email with a secure link to the payment portal, helping patients easily view and pay their bills. The secure payment portal simplifies payment processes, leading to faster payments and improved collection rates. With text messages having a 98% open rate, this method also proves highly effective for delivering bills and increasing payment collections.
QR Codes on Mailed Statements
Including QR codes on mailed statements allows patients to make payments quickly through their mobile devices. With 85 percent of consumers paying bills via an electronic payment method, it offers convenience and instant access for patients. By scanning the QR code, patients can be directed to a secure payment portal to view their bill, choose their payment method, and securely make their payment.
Automated Reminders
BillFlash can also send automated reminders up to three times monthly via emails and text until the balance is paid. Patients receive timely reminders about their balances and due dates without manual intervention. Best of all, practices can set reminder rules and automate their billing process.
Enhance Communication
Clear communication about billing processes and payment options helps patients understand and follow through on their financial responsibilities. When patients know what they need to pay, medical practices build trust and transparency. Customizable billing reminders sent by text and email can also boost patient engagement. Including informative and educational PDF inserts with mailed statements provides a cost-effective way to communicate further with patients.
Offer Multiple Payment Options
Flexibility in payment collections also affects patients’ ability to pay their bills on time. By offering different options, like online payment, in-office payments, and over-the-phone payments, patients can choose the method that works best for them. When paying is easy, patients are less likely to miss a payment.
Leverage Analytics
Tracking payment performance through analytics gives medical practices a better understanding of payment behaviors and trends. Automatic reports on billing performance and payment collections help practices identify areas that need improvement and adjust their strategies. These insights can also show patterns of late payments or demographic factors affecting patient payment behavior, allowing for more targeted collection approaches.
By implementing these strategies, medical practices can significantly reduce their administrative burden while improving the financial literacy of their patients. Patients who understand their financial responsibilities are also more likely to pay on time, contributing to overall financial health. In addition, with price transparency and accessible payment options, late payments can be minimized, ensuring smoother operations.
How BillFlash Turns Hurdles Into Success
Communications That Go the Extra Mile
At BillFlash, we believe effective communication is essential for managing billing workflows. Our platform automates the billing process and improves patient communication. Instead of sending generic statements, we provide customizable templates that reflect your practice's brand and tone. This way, you can clearly and professionally share vital information with your patients. Automated reminders, notifications, and follow-ups also keep your patients up-to-date on their billing status, reducing misunderstandings and boosting satisfaction.
Integrated Payment Solutions
BillFlash integrates with over 100+ billing applications, simplifying payment collections for you and your patients. Whether your patients choose to pay in-office or online through an intuitive portal, our service meets their needs. Our payment solutions also manage one-time transactions and recurring payments, allowing patients to easily handle their bills. With strong security measures, you can be confident that all payment information is protected, ensuring peace of mind for your practice and patients.
Patient Financing Options
We also offer a payment plan, BillFlash FlexPay, for patients who cannot pay their bills in full, increasing the likelihood of recovering outstanding balances. The best part is that the practice gets paid in full as the patient pays in monthly installments. Collected payments are deposited directly into your BillFlash Pay Services bank account, ensuring prompt access to funds without waiting for a collection agency to take their cut.
Payment Collections Services
BillFlash makes managing overdue accounts easier with our compassionate payment collections services. We focus on communicating with patients in a friendly way that prioritizes understanding and finding a solution over confrontation.
Our team of licensed Recovery Specialists, operating in all 50 states, handles payer interactions with professionalism and respect. They also undergo continuous compliance training and courtesy coaching. Since many of our team members are bilingual, we can communicate effectively with everyone.
Our Integrated Collections Services are built directly into the BillFlash Billing & Pay platform, giving you a single solution for all your patient billing and payment management needs. This approach also helps you recover overdue accounts quickly and preserves the relationship between patients and your practice.
By using our collections services, you can reduce the stress of overdue payments and increase recovery rates.
Customizable Billing Solutions
Every practice is unique, and at BillFlash, we think your billing solutions should be, too. Stop viewing mailed statements as just bills, as they serve as a significant way to communicate with your patients.
With our easy-to-use insert feature, you can add pre-designed promotional or educational materials to your mailed statements. Just upload your PDF files, and we will handle professional printing and inclusion of each bill.
Our platform also helps you personalize your billing statements and email and text communications to suit your requirements. By doing so, you can enhance your professional image and boost patient satisfaction. With BillFlash, you can use billing solutions that match your operational practices and patient expectations perfectly.
Real Results From Practices Using BillFlash
Maine Optometry, a practice with seven locations and 20 doctors that performs over 60,000 exams annually, struggled with managing patient billing and payment collections. They faced challenges including staffing and training issues, inefficient manual processes, patient confusion about insurance, and a lack of transparency from their previous collections agency.
Under the management of Nick Vaccaro, Director of Finance, the practice sought effective strategies to streamline its operations and enhance patient satisfaction, turning to BillFlash Integrated Collections Services to transform its operations.
The main factors influencing Maine Optometry's choice were:
- A Need for a More Efficient and Automated System: The existing billing process was inefficient, involving manual entry and a high potential for errors. Staff were spending excessive time on follow-ups and reconciliation, which detracted from their primary focus—providing quality patient care.
- Trust in BillFlash's Integrated Platform: The seamless integration with existing practice management systems was a key consideration. Maine Optometry recognized the importance of maintaining data integrity and minimizing disruptions during the transition. Our reputation for reliability and user-friendly interface assured the team that they could easily adapt to the new system without compromising their workflow.
- The Need to Optimize Staff Efforts and Effectively Allocate Resources: Maine Optometry understood that their staff's time was a valuable asset that could be better utilized. By wanting to automate their billing and payment processes, they aimed to reduce administrative burdens on their team. This optimization would allow staff members to dedicate more time to patient interactions and care, ultimately improving the overall patient experience.
What Were the Key Outcomes?
- Increased Payment Collections: Maine Optometry saw a monthly collection increase of $10,000 to $15,000 in just a few months, thanks to improved online payment options and streamlined processes.
- Time Savings: Staff members also saw a significant reduction in the time spent on administrative tasks, allowing them to focus more on patient care.
- Improved Patient Satisfaction: By communicating better and educating patients more effectively, Maine Optometry saw an increase in immediate payments.
By automating workflows and improving patient communication, this practice saw significant efficiency gains, higher patient satisfaction, and more stable revenue. Overall, these key outcomes improved the financial health of Maine Optometry and established a foundation for sustainable growth and better patient experiences.
Read more about this success story here.
Your Path to Payment Success
Mastering payment collections is not just about improving your financial health; it's about fostering a positive patient experience. BillFlash supports you in this journey, equipping your practice with the tools to navigate the challenges of patient billing and collections. Don't let inefficient payment processes stunt your practice's growth.
Ready to transform your billing and payment processes? Schedule a demo with BillFlash today and see how we can help your practice thrive!