In this episode, we take a deep dive into medical debt collection and how it’s evolving to be more efficient, patient-friendly, and provider-controlled. Traditional collection agencies often create a lose-lose scenario—providers face delayed payments and high fees, while patients experience aggressive tactics and financial stress. But a new, integrated collections approach is changing the game.
Learn how automated, provider-driven collections give medical practices more control, reduce administrative burdens, and improve patient relationships. We discuss the benefits of:
-Integrated collections services that keep providers in control of past-due accounts
-Automated workflows that replace slow, manual processes
-Flexible payment plans that help patients manage their bills while ensuring providers get paid
-Faster payments with funds deposited directly to providers—no middleman delays
Join us as we explore how practices can modernize collections, improve cash flow, and support their patients with a more compassionate and efficient approach. Tune in now to learn how your practice can benefit from this shift!
Transcript
Narrator: 00:00
Welcome to the Billing Blueprint Podcast, your go to resource for innovative medical billing solutions. Each episode we explore the latest industry trends and share proven strategies to help your practice streamline operations and get paid faster. Now here are your hosts, Brad and Sarah.
Brad: 00:21
Hey everyone. Ready for another deep dive? Today we're tackling something I bet we've all thought about at some point. Medical debt collection. Whether you're like, maybe you're prepping for a meeting about healthcare costs or trying to figure out a bill that just doesn't make sense, or maybe you're just curious about how this whole huge system works. Whatever your reason, we're going to break it all down how it works. And get this, there are actually some pretty positive trends happening too.
Sarah: 00:49
You know, it's really interesting how this issue of medical debt, it really does touch everyone involved in healthcare, from like the biggest hospitals down to each individual patient. It all comes down to how we handle this issue, for sure.
Brad: 01:01
And to get a sense of just how big this is, let's start with a number that's kind of mind blowing. $4.8 trillion. That's how much the U.S. spent on healthcare.
Sarah: 01:09
Yep, 4.8 trillion in 2023 alone. And the thing to remember is that a big chunk of that comes straight from patients pockets out of pocket costs. And for a lot of people, those costs are just impossible to handle.
Brad: 01:24
Okay, so we've got this massive amount of money flowing through the system. Patients struggling to pay their bills and providers trying to keep their doors open. Sounds like a recipe for some serious tension, right?
Sarah: 01:35
You got it. Now, traditionally, when a patient couldn't pay their medical bills, the provider would often turn to these third party collection agencies. You know the ones I'm talking about, sending out letters, making those phone calls.
Brad: 01:46
Yeah. Not exactly known for their empathy, are they? But before we get to the downsides, can you walk us through how these traditional agencies actually work?
Sarah: 01:53
Sure. Basically, the provider hands over the unpaid account to the collection agency and they become the middleman. They use different methods, some more aggressive than others, to try and get the debt paid.
Brad: 02:05
I can already see where this could go wrong for both the patient and the provider.
Sarah: 02:09
Exactly. One of the biggest problems is that providers often lose control once they hand over that account. They may not even know what tactics the agency is using. And some agencies can be pretty ruthless, even if the provider themselves wouldn't agree with those methods.
Brad: 02:24
That's a tough spot to be in. As a provider, you want to get paid for your services, obviously, but you also don't want your Patients to feel harassed or scared.
Sarah: 02:33
Right. And it's not just about ethics either. These agencies often take a big cut of what they collect. And it can take forever for the provider to actually see any payment.
Brad: 02:42
So the provider ends up with less money, delayed payments, and potentially a damaged relationship with their patient.
Sarah: 02:48
It really is a lose lose for everyone. And to make it even worse, these traditional agencies often rely on these really slow manual processes.
Brad: 02:56
So we're writing stacks of paperwork, data entry, phone calls.
Sarah: 02:59
It's inefficient, prone to errors. Just adds to the headache for everyone.
Brad: 03:03
Okay, I'm convinced the old way just isn't cutting it. But luckily it sounds like there's a new approach. Integrated collection services. From what I've read, this seems like a real game changer.
Sarah: 03:13
Definitely agree. This new model completely changes things. It integrates the collection process right into the provider's system. It makes everything smoother, gives providers more control, and most importantly, it focuses on a positive experience for the patient.
Brad: 03:27
So instead of this like adversarial hands off approach, it's more about working together and finding patient centered solutions.
Sarah: 03:33
Exactly. Think of it this way. With an integrated system, past due accounts are flagged automatically. But before anything goes to collections, the provider gets to review it. They decide which accounts really need that extra attention and make sure it's handled in a way that fits their practice's values.
Brad: 03:51
That's a big difference. It puts the provider back in control.
Sarah: 03:53
You got it. And because everything's integrated, the data transfer is smooth and secure. Cuts down on those manual processes and errors.
Brad: 04:02
Okay, this is starting to sound less like debt collection and more like a smart way to manage a complicated issue.
Sarah: 04:07
It's about finding that balance. Right. You need to recover revenue, but you also need to protect those patient relationships.
Brad: 04:14
And I've noticed some companies out there are really pushing the boundaries of this integrated approach. One name is Bill Flash.
Sarah: 04:21
They're a great example of how to do integrated services. Right. What are your first thoughts on them?
Brad: 04:27
One thing that jumps out is their focus on the human side of things. They have licensed and bilingual specialists in all 50 states, so they can really connect with patients on a personal level.
Sarah: 04:36
That personal touch makes a huge difference. Remember, we're dealing with real people here facing stressful situations.
Brad: 04:43
Totally. And they also offer payment plans, which seems like a much more realistic solution for patients who just can't afford to pay a huge bill all at once.
Sarah: 04:52
That's a key benefit of this approach. It lets patients manage their debt in a way that works for them, while making sure the provider still gets paid.
Brad: 05:00
And it gets even better with Bill Flash. Payments go straight to the provider, no middleman. So they get paid quickly and efficiently.
Sarah: 05:07
Exactly. No more waiting around for a third party.
Brad: 05:09
And this isn't just some theory. Billflash is actually helping thousands of providers all over the country. One study found that 65% of BillFlash users said they needed help with collections, which really shows how widespread this issue is.
Sarah: 05:23
And think about it from the provider's side. They didn't go into medicine to become debt collectors.
Brad: 05:27
Right. They went into it to care for people.
Sarah: 05:29
A service like BillFlash lets them focus on that while still getting paid for their work.
Brad: 05:34
We even found a testimonial from a billing service professional who is just raving about Bill Flash, how it helped them increase revenue, save time, and even build better relationships with their patients.
Sarah: 05:45
It's a perfect example of how the right approach can create positive results for everyone involved. But there's more to the story. We're seeing bigger trends in healthcare that point to a future where patient financial responsibility is even more important. And that's where integrated services become essential.
Brad: 06:02
So it sounds like this shift toward patients being more responsible for their healthcare costs, it makes these integrated services even more important. It's not just about dealing with unpaid bills anymore. It's about helping patients navigate a system that's getting more and more complicated.
Sarah: 06:19
Exactly. As healthcare costs keep rising, more of that burden falls on patients. And providers need the right tools and systems to support both their financial needs and their patients financial well being.
Brad: 06:32
Okay, so we've talked about how integrated services are more efficient, more patient centered when it comes to collections. But I'm curious, how do they actually make things better for the patient?
Sarah: 06:42
Well, remember those impersonal one size fits all communications from traditional agencies? With integrated services, the provider has so much more information about the patient so they can be more personalized and understanding.
Brad: 06:53
So instead of getting a generic letter that feels kind of threatening, patients are getting communication that's tailored to their situation.
Sarah: 07:00
Exactly. And because the provider is in control, they can make sure that all communication aligns with their practice's values and their commitment to patient care.
Brad: 07:09
That's a big difference. It's about treating patients with respect, even when there are outstanding balances.
Sarah: 07:15
Right. And a lot of integrated services go even further. They offer things like flexible payment options, payment plans, or financial assistance, which is.
Brad: 07:24
Huge for patients who can't afford to pay a big bill all at once.
Sarah: 07:28
It recognizes that everyone's financial situation is different.
Brad: 07:31
It's like we're finally realizing that a one size fits all approach just doesn't work.
Sarah: 07:36
And this shift towards being more flexible and understanding, it's good for providers too. When patients feel like they're being treated fairly, they're more likely to work with the provider to find a solution.
Brad: 07:46
So it's about finding common ground.
Sarah: 07:48
Exactly. And that can lead to better outcomes for both sides. Providers are more likely to get paid, and patients can keep that positive relationship with their doctor.
Brad: 07:57
Makes sense. Now, we talked earlier about how traditional agencies are so slow and manual. How do integrated services fix that?
Sarah: 08:04
That's one of the biggest advantages. By automating a lot of the steps in debt collection, integrated services take a huge burden off providers. Things like flagging past due accounts, creating patient communications, even processing payments.
Brad: 08:21
So providers can spend less time chasing down payments and dealing with paperwork. And more time taking care of patients.
Sarah: 08:27
Exactly. And because it's automated, it reduces errors, which can be a real pain for everyone involved.
Brad: 08:33
Okay, so it's more efficient, more accurate, and better for patients. But what about the cost? Are these integrated services only for big healthcare systems with lots of money?
Sarah: 08:43
That's a good question, but actually, integrated services can be more cost effective than those traditional agencies.
Brad: 08:49
Really? How?
Sarah: 08:50
Think about all those manual processes. Automating them cuts down on staffing costs and overhead. Plus, a lot of integrated services have lower fees than traditional agencies.
Brad: 09:00
So it saves time and money, especially.
Sarah: 09:02
For smaller practices that are already struggling.
Brad: 09:04
I think that's one of the most exciting things about this shift. It's not just about technology. It's about making healthcare more equitable and accessible.
Sarah: 09:13
Right. At the end of the day, we're talking about people's lives and well being. And while these integrated services are really promising, technology alone can't solve all the problems in healthcare.
Brad: 09:23
Yeah, there's always the human element.
Sarah: 09:25
Implementing an integrated service isn't just about flipping a switch. It takes planning, staff training, and communication with patience.
Brad: 09:32
It's a journey, not a destination.
Sarah: 09:35
That's a great way to put it. It's about embracing a new way of thinking about medical debt and creating a system that works for everyone. And as we move forward, we have to remember that technology should make the human experience better, not replace it.
Brad: 09:50
Well said. We've talked about a lot of the benefits of integrated services, but are there any downsides or things providers should watch out for?
Sarah: 09:58
Of course, one thing to keep in mind is that this is all still relatively new. The technology is always changing and there's a learning curve for everyone.
Brad: 10:05
It's not like you can just buy a software program and everything's fixed.
Sarah: 10:08
Right. It takes time to implement these systems, train staff and educate patients. And even with the best technology, there will always be situations where you need a human touch. We're talking about complex financial stuff and sometimes you just need a real person to help.
Brad: 10:23
That makes sense. Technology can be amazing, but it can't replace empathy and understanding.
Sarah: 10:29
Absolutely. So it's important for providers to choose a service that prioritizes both technological innovation and a patient centered approach. You want a company that gets healthcare finance and is committed to a system that works for everyone.
Brad: 10:43
So for providers who are thinking about exploring these integrated services, what advice would you give them?
Sarah: 10:48
Do your research. There are a lot of companies out there. So compare features, costs and customer support. Don't just go with the first one you see. Take your time and understand what each each provider offers.
Brad: 10:59
Find the right fit.
Sarah: 10:59
Exactly. And talk to other providers who have already used these services. Ask questions and see how they work in the real world. You can even ask for demos from different companies.
Brad: 11:08
It's like any big decision for your practice. You want to gather all the information, weigh the pros and cons, and make a choice that helps both you and your patients.
Sarah: 11:19
Exactly. And remember, this isn't a one time thing. It's an ongoing process that requires communication, collaboration and being willing to adapt.
Brad: 11:28
It's not just about buying software. It's about a new way of thinking about medical debt.
Sarah: 11:32
Exactly. It's about creating a system that's more transparent, more efficient, and ultimately more human.
Brad: 11:39
And that brings us to the question of the future. Earlier, you mentioned some exciting trends that make you hopeful. Can you tell us more about that? You mentioned some exciting trends that make you hopeful for the future of medical debt. Can you tell us more about that?
Sarah: 11:51
Absolutely. One trend that's really promising is this focus on price transparency. For a long time, the cost of healthcare was a mystery. It was hard for patients to know what they were paying for and to plan accordingly.
Brad: 12:04
Yeah. It's not like you can shop around for the best price on a surgery like you would for a new tv.
Sarah: 12:08
Exactly. But things are changing. With new regulations and pressure from patients, providers are starting to be more upfront about their prices. So patients can make smarter choices and maybe even avoid those surprise bills that can lead to debt.
Brad: 12:23
So knowledge is power, even when it comes to healthcare. But even with more transparency, there will always be people who struggle to afford care.
Sarah: 12:32
That's a really important point. And that's where we're seeing some really creative payment Models going beyond traditional insurance and out of pocket payments.
Brad: 12:39
Like what? Give us some examples.
Sarah: 12:41
Well, one example is value based care. In this model, providers are rewarded for keeping patients healthy, not just for treating them when they're sick. It focuses on prevention, which can help lower health care costs in the long run.
Brad: 12:54
That makes sense. It's like investing in your health now to avoid bigger problems later.
Sarah: 12:58
Exactly. And by focusing on prevention, value based care can actually stop some of those medical bills from happening in the first place.
Brad: 13:05
But what about people who are already dealing with medical debt?
Sarah: 13:08
That's a crucial question. And there are some resources out there. Some hospitals are starting to offer debt forgiveness programs, especially for low income patients. And there are nonprofit groups that help people navigate medical debt and find ways to manage it.
Brad: 13:24
It's good to know there's help available. But even with all these positive changes, it seems like we still have a long way to go before healthcare is truly affordable for everyone.
Sarah: 13:34
I agree it's a complicated issue, but I think we're heading in the right direction. There's a shift happening in how people think about this, both providers and patients.
Brad: 13:44
What do you mean?
Sarah: 13:45
Well, for providers, there's this understanding that financial health is important. It's not just about collecting money. It's about supporting patients and helping them get the care they need without being burdened by debt. And for patients, I think they're being more proactive. They're asking questions, comparing prices and taking control of their healthcare costs.
Brad: 14:02
That's a great point. It's about giving patients the tools to be smart healthcare consumers.
Sarah: 14:07
Exactly. It's not just about technology or policy. It's about changing the culture around healthcare finance.
Brad: 14:13
Well, we've covered a lot in this deep dive. The challenges of medical debt, how collections are changing, and even some reason to be hopeful about the future.
Sarah: 14:20
It's been a fascinating conversation, and if you're still listening, you're obviously as interested in this as we are. That's what makes these deep dives so great. Sparking curiosity, encouraging critical thinking, and giving you the knowledge to navigate this complicated world.
Brad: 14:35
As we wrap up, I want to leave our listeners with one final thought. What if instead of seeing medical debt as this unavoidable burden, we saw it as a chance for innovation and positive change?
Sarah: 14:46
I love that. What if we could build a system that not only collects payments, but also builds trust, empathy, and genuine care between patients and providers? A system where financial health is a key part of overall well being? That's a future worth fighting for.
Brad: 15:01
Absolutely. And with the right mindset, the right tools and a shared commitment to do better, I think we can make that happen. Thanks for joining us on this deep dive into the world of medical debt collection. We hope you learned something new, gained a new perspective, and maybe even feel a little bit hopeful about the future of healthcare.
Sarah: 15:17
Until next time, stay curious and keep exploring.
Narrator: 15:21
Thanks for tuning into the Billing Blueprint podcast. For more insights or to dive deeper dive deeper into today's topics. Head over to billflash.com. Don't forget to subscribe and we'll catch you next week with more strategies to keep your practice running smoothly and getting paid faster.
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