Feeling like your practice is financially “leaking” somewhere—but not sure where? You're not alone. In this episode of The Billing Blueprint Podcast, we dive into the five hidden leaks in your healthcare revenue cycle that quietly drain your bottom line: from poor cost transparency to weak collections strategies.
They break down how small, fixable inefficiencies in your revenue cycle—from scheduling to final payment—can have a big impact on your cash flow and patient satisfaction. Learn practical strategies and tech-driven solutions like BillFlash PreBill, eBill, Pay, FlexPay, and Integrated Collections Services to stop the drip and start reclaiming revenue.
Tune in to find out how improving the patient financial experience can transform your practice’s performance—without overhauling your entire system.
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.
Sarah: 00:21
Okay, let's unpack this. Imagine you're running a medical practice, doing great work, but, well, financially. Something just feels a bit off. Not one huge thing, maybe, but like a slow, steady leak somewhere. You're losing money month after month, and it's hard to pinpoint exactly why. It's frustrating.
Brad: 00:42
Absolutely. It's those hidden spots, those little inefficiencies where revenue just sort of slips through the cracks. Money that should be collected but isn't.
Sarah: 00:50
Exactly. And that's what we're diving into today. We're looking at the healthcare revenue cycle. You know, that whole process from appointment booking right through to getting paid, and.
Brad: 01:00
Specifically finding those hidden leaks.
Sarah: 01:02
Right, the ones that our source material points out. Because these aren't just minor annoyances. They can seriously impact a practice's financial health and maybe surprisingly, patient satisfaction, too.
Brad: 01:12
Yeah. We're drawing heavily from an article called “Five Hidden Revenue Leaks in your Healthcare Revenue Cycle and How To Stop Them.” It does a good job laying out these really common but often missed problems.
Sarah: 01:24
So our mission today is to go through those five specific leaks the article highlights. We want to understand why they're such a big deal and then, you know, explore the strategies and even some tools the source suggests for plugging them up.
Brad: 01:36
The goal really is for you listening, to get a clearer picture of where revenue gets stuck and importantly, how to start fixing it.
Sarah: 01:44
And the good news, according to the source, is that fixing them doesn't always mean a massive system overhaul.
Brad: 01:50
No, it doesn't. The article stresses that these leaks are subtle, but add up fast, eroding profitability. But identifying them is key.
Sarah: 01:58
It's about fine tuning, making targeted improvements.
Brad: 02:01
Precisely. It's about finding exactly where that drip, drip is happening in the revenue pipeline.
Sarah: 02:06
Okay, so where does the article say the first big leak happens? Like, where does it start?
Brad: 02:10
It starts right at the very beginning. Leak number one is failure to set expectations up front.
Sarah: 02:16
Lack of cost transparency.
Brad: 02:18
Exactly. The patient doesn't really know their financial responsibility before they get the care.
Sarah: 02:22
That feels pretty fundamental, doesn't it? If you don't know the cost, how do you prepare?
Brad: 02:27
Right. And the article gives that classic example. Patient gets great care, feels positive, then weeks later, bam. A bill they just weren't expecting.
Sarah: 02:36
Oof. The surprise bill.
Brad: 02:38
That surprise is a huge friction point. The source says it leads directly to fewer upfront collections. You know, payments made at the time of service. And it makes accounts receivable age much longer.
Sarah: 02:50
Because people hesitate or delay when they're surprised.
Brad: 02:52
Precisely. Think about trust. Predictability builds trust. Unexpected bills can really damage it. It's not just about if they can pay, but that feeling of being blindsided. The article even mentions a Commonwealth Fund survey showing just how common unexpected bills are, even for insured folks. And that contributes to people being hesitant to seek care or just dragging their feet on paying. It messes up cash flow and hurts that patient relationship.
Sarah: 03:18
Okay, so the problem is the surprise factor. What does the article suggest practices do about it?
Brad: 03:23
Well, the solution is pretty straightforward. Conceptually. Provide clear upfront cost estimates, educate patients on what they'll likely owe before the.
Sarah: 03:30
Visit, make it part of the pre-visit process.
Brad: 03:33
Yes. Use plain language, maybe visual aids, help them understand based on their insurance and the plan services.
Sarah: 03:39
And the article mentioned a tool for this, didn't it? BillFlash PreBill.
Brad: 03:43
It did, yeah. It's presented as a way to automate this. It sends secure cost estimates via text or email, leading the patient to a secure portal.
Sarah: 03:51
So they can see the estimate and even pay before getting a formal bill.
Brad: 03:55
Exactly. The source claims this approach drastically reduces delayed or unpaid bills. It builds trust through transparency, improves the patient experience by lessening financial anxiety, and, well, it helps get revenue in the door faster.
Sarah: 04:08
Makes sense turning that financial talk from a post care shock into an upfront, normal part of the process.
Brad: 04:14
Right? Less surprise, less resistance later.
Sarah: 04:16
Okay, so that covers the upfront piece. What happens after the service? Where's the next leak?
Brad: 04:21
That brings us to leak number two. Missed opportunities for timely patient communication. Basically inconsistent or confusing reminders about the bill itself.
Sarah: 04:30
Ah, so even if they knew the estimate, if the actual billing communication is.
Brad: 04:34
Poor, things fall through the cracks. Patients forget, life gets busy, maybe the bill gets lost. If the follow up is weak or slow, those bills just sit unpaid. That's lost revenue, pure and simple.
Sarah: 04:47
So effective communication actually boosts collections.
Brad: 04:51
The article is clear on that. Yes. It says effective communication is proven to help. And just relying on, say, mailing out a statement now and then isn't really enough anymore. Patients expect more modern, accessible notices.
Sarah: 05:02
It's just a basic consumer expectation now, isn't it? Digital reminders for everything.
Brad: 05:07
It really is. And that statistic, the source included, was pretty stark. Provider organizations wrote off over $17 billion in bad debt in 2023.
Sarah: 05:15
17 billion. Wow.
Brad: 05:18
And the article strongly suggests a big chunk of that might Be down to just inadequate communication strategies not reaching people effectively.
Sarah: 05:26
So what's the fix here? According to the source, automation.
Brad: 05:28
Automation is key. Implement automated, timely and effective communication systems. Send statements promptly after the service, follow.
Sarah: 05:35
Up regularly and use different channels.
Brad: 05:37
Definitely use multiple channels. Mail? Sure. But also email. Text messages reach patients where they actually are. And maybe customize the messaging a bit so it feels personal.
Sarah: 05:48
And for this the article points to BillFlash eBills as an automated compliant tool.
Brad: 05:54
Yes, specifically for digital delivery via text and email. It aligns with that consumer Preference. The source sites. 62% of patients prefer digital notifications for payments.
Sarah: 06:05
And these eBills link directly to a payment portal, right?
Brad: 06:08
A secure link. They also mention other options like eBill Notices or even putting QR codes on mailed bills that take patients straight to the online portal.
Sarah: 06:17
So it's about making it easy to see and easy to act.
Brad: 06:19
Exactly. The claim is this systematic multichannel approach gets payments in much faster. Cuts down on those time consuming billing.
Sarah: 06:27
Calls to the office staff, which they must hate.
Brad: 06:29
Right. And it just streamlines the whole workflow compared to doing it all manual.
Sarah: 06:32
Faster payments, payments, fewer calls. Sounds like a win-win for efficiency in getting paid. Okay, so you've communicated clearly on time. What if the patient wants to pay but actually doing it is a hassle?
Brad: 06:43
That's leak number three. Limited or inconvenient payment options.
Sarah: 06:47
Ah, so if paying means digging out a checkbook, finding a stamp, or calling during an arrow window, they might just.
Brad: 06:55
Put it off or not do it at all. People prioritize convenience, especially now.
Sarah: 07:00
Yeah, definitely.
Brad: 07:01
The source highlights that over 60% of patients actually prefer paying through patient portals. Yet the health care industry often still leans heavily on paper and manual stuff.
Sarah: 07:12
So limiting options creates friction.
Brad: 07:14
Huge friction. If it's only checks by mail or maybe paying in person or calling during office hours, you're just delaying your own collections. Or worse, risking nonpayment entirely. Think about online shopping. How quickly do you abandon a cart if it's complicated?
Sarah: 07:29
Good point. So the fix is basically make it.
Brad: 07:31
Easy, pretty much expand the ways people can pay, accept what they expect. Credit, debit, maybe digital wallets like Apple Pay or Google Pay plus cash and checks where needed.
Sarah: 07:40
And offer different ways to submit payment.
Brad: 07:42
Yes, a good online portal is crucial. Secure options for paying in the office, maybe over the phone, mail to just cover the bases and simplify the actual payment process within those channels.
Sarah: 07:55
The article mentioned BillFlash Pay as a platform for this. Right? Offering different tools.
Brad: 07:59
It did things like online pay so patients can pay Whenever, wherever, which obviously takes load off the staff, office pay for secure in office transactions and things like payment plans. Yes, plan pay for automating payment plans, setting them up so they run automatically, preventing defaults and autopay, where patients can opt in to have new bills paid automatically in full.
Sarah: 08:20
That sounds convenient for everyone, right?
Brad: 08:23
And the source also mentions their payment gateway integrating with the practice's merchant A accounts for smooth processing behind the scenes. The core claim is offer these options, get paid faster, make patients happier and accommodate how they want to pay.
Sarah: 08:37
Makes sense. Offer choice, reduce friction. But what about the actual amount? Sometimes it's not just convenience, it's affordability, especially with high deductibles these days, you're.
Brad: 08:47
Anticipating leak number four, failure to address affordability with financing options.
Sarah: 08:53
So the bill is just too big to handle all at once.
Brad: 08:55
Exactly. Patients get overwhelmed. High medical costs, high deductibles, it's a lot. They might put off putting, try to negotiate something, or just flat out not pay because they can't manage the lump sum.
Sarah: 09:07
And that leads straight to uncollected revenue directly.
Brad: 09:10
And the scale is huge. The source cites KFF data, over 20 million patients owing medical debt. And another survey estimates the total amount is at least $220 billion across the country with.
Sarah: 09:22
Whoa. $220 billion. That's staggering.
Brad: 09:26
So providers need a way to make payment possible, not just convenient.
Sarah: 09:30
Yes, precisely. The solution involves offering flexible financing. Structured payment plans are a big one, breaking down the cost. But also the article suggests partnering with third party financing companies.
Brad: 09:40
The ones offering low or no interest loans.
Sarah: 09:42
Right. And crucially, making sure patients actually know about these options early on in the billing conversation. Addressing affordability directly helps patients figure out a way to pay without being completely overwhelmed. And the specific example here was Bill Flash FlexPay. How does that work?
Brad: 09:57
It's presented as a way for patients to finance their care, but importantly, with no risk to the practice. The practice gets paid up front by the financing partner.
Sarah: 10:07
Oh, okay. So the practice gets their money quickly.
Brad: 10:10
Exactly. While the patient then pays the financing company over time. The source mentions details like an easy online application, less than a minute, a high approval rate, and the availability of an interest free option for the patient.
Sarah: 10:25
That sounds pretty appealing.
Brad: 10:26
The claims are that this helps attract and retain patients. Because care becomes more accessible financially, it improves the patient provider relationship, gets the practice paid faster, and cuts down the risk of non payment on those larger balances.
Sarah: 10:38
Getting paid upfront while while giving the patient flexibility. That feels like a really solid way to plug a major leak. Okay, so we've hit upfront expectations, communication, payment options, affordability. What's the last leak the article identifies?
Brad: 10:52
The fifth and final leak is having an ineffective or simply non existing collections strategy. This is for accounts that actually become overdue, despite everything else.
Sarah: 11:02
Ah, so if you've done the other steps, but don't have a solid plan B for when payments are late, those.
Brad: 11:08
Unpaid accounts just start to pile up. And chasing them manually eats up tons of staff, time and resources. It's inefficient.
Sarah: 11:15
Are there benchmarks for this? Like how long accounts sit unpaid?
Brad: 11:19
Yeah. The source gives some numbers. The average provider wakes up to 47 days to collect from patients. High performing practices, they aim for more like 30, 40 days in accounts receivable.
Sarah: 11:28
A big difference.
Brad: 11:29
It is. And they also note that overall patient collection rates are falling down to around 48%. Part of that is linked back to those unpaid balances from insured patients with high deductibles we talked about.
Sarah: 11:39
So without a clear proactive plan for overdue accounts, money just sits there, losing value.
Brad: 11:45
Exactly. You need a system, not just wishful thinking.
Sarah: 11:48
So the solution involves automating the collections process too.
Brad: 11:51
Automation is definitely part of it. Using software to automatically trigger reminders, escalate accounts based on rules you set. Establishing clear internal policies is vital too. And tracking key metrics.
Sarah: 12:03
And the article mentioned Bill Flash, integrated collection services here. What makes it integrated?
Brad: 12:08
The source highlights that it's provider controlled, which sounds a bit different than just handing accounts off wholesale to a third party agency.
Sarah: 12:16
How so? Provider controlled?
Brad: 12:18
It means the practice sets the rules. They decide which accounts go to collections and when, based on their own criteria. The service then uses licensed recovery specialists. They mentioned they have them in all 50 states. And importantly, 75% are bilingual.
Sarah: 12:34
Bilingual collectors. That seems smart for clear communication.
Brad: 12:37
Very smart. The source claims this leads to clearer communication, better patient interactions, and ultimately higher recovery rates compared to less flexible approaches. And a key payments collected are directly deposited to the provider promptly. No waiting for the agency to cut a check later.
Sarah: 12:54
So more control for the practice, better communication for the patient, and faster money when it is collected. That makes sense. Okay, so bringing these five leaks together.
Brad: 13:03
Yeah, the source really connects them. The lack of upfront clarity, the poor communication, inconvenient payments, not addressing affordability, and then a weak collections backstop. They're all interconnected points of failure in the revenue cycle.
Sarah: 13:18
Each one letting a little bit of that potential revenue drain away.
Brad: 13:21
Exactly. They all contribute to that slow, hidden drain. Or on the practices financial health. We started talking about, but the overall.
Sarah: 13:28
Message seems positive, right? That these can be fixed.
Brad: 13:31
Definitely. The article's core message is one of empowerment. It suggests that by focusing on these specific areas and potentially using integrated technology solutions like the ones mentioned for billing, payments, financing, collections, practices can systematically plug.
Sarah: 13:46
These leaks, recover lost revenue, speed up cash flow.
Brad: 13:49
Right. And they make a point about the importance of integration, mentioning the BillFlash platform integrates with over a hundred billing applications, making it easier to adopt without ripping everything out.
Sarah: 13:59
That's a huge practical point for any practice not wanting a massive disruption.
Brad: 14:04
Absolutely. It's about targeted fixes for specific weaknesses in the financial pipeline.
Sarah: 14:09
This has been a really helpful deep dive into the source material. It lays out such a clear map of where revenue can get lost in that whole cycle. Understanding these five key spots, you know, upfront expectations, communication, payment options, affordability, and collection strategy, feels like the essential first step.
Brad: 14:26
It really shifts the focus, doesn't it? Beyond just sending out claims and hoping to actively managing that whole patient financial experience, that experience becomes a critical part of practice health.
Sarah: 14:37
Absolutely. Which kind of leaves us with a final thought for you, the listener. Building on the source's message, think about this. How does really focusing on and improving the patient's financial journey, making it clearer, easier, more manageable, how does that fundamentally change things? Not just the practice's bottom line, which is important, but also the operational efficiency and maybe most importantly, the level of trust and the relationship you build with that patient.
Brad: 15:03
Yeah, how does turning those potential leaks into actual collected revenue become not just about stopping loss, but about building something stronger, better patient engagement, higher satisfaction, and ultimately a healthier practice in every single?
Narrator: 15:18
Thanks for tuning in to the Billing Blueprint podcast.
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
Sources:
5 Hidden Revenue Leaks in Your Healthcare Revenue Cycle (and How to Stop Them)