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Patient Billing Best Practices

Collecting patient balances in a medical billing environment requires a systematic approach to ensure timely and efficient payment. Not only is it necessary to be persistent, but also to remain committed to the best patient communication techniques. Patient engagement when it comes to payments should rank at the top of the list in importance for a financially healthy practice. Listed below is a helpful,  step-by-step guide on how to best manage and collect patient balances:

1. Clear Communication from the Start

  • Verify Insurance Benefits: Ensure proper insurance verification before services are rendered to avoid confusion and minimize claim denials.
  • Provide Estimates: Give patients a clear cost estimate before treatment, outlining their insurance coverage and expected out-of-pocket expenses.
  • Educate Patients: Ensure that patients understand their financial responsibility, including co-pays, deductibles, and any out-of-pocket maximums

MediSYS Tools:

Individual & Batch Eligibility

Patient Copay Work Screen

Calculate Deposit

Print No surprise form

2. Offer Flexible Payment Options

  • Accept Multiple Payment Methods: Offer payment by cash, check, credit card, or electronic transfer. Ensure the process is simple and convenient.
  • Payment Plans: For larger balances, offer interest-free or low-interest payment plans to help patients manage their payments over time.
  • Online Payment Portal: Set up a user-friendly online system where patients can view and pay their balances easily. (We offer this through Vaytiv, an exclusive partner with MediSYS.)

MediSYS Tools:

Payment Plan Work Screen

Auto-posting of online payments

Send balance texts

3. Collect Payment at the Time of Service

  • Front Desk Collections: Encourage patients to pay their co-pay or any known charges at the time of service.
  • Pre-Authorization: For high-cost procedures, get pre-authorizations from insurance and inform patients about any costs they will need to pay upfront.

MediSYS Tools:

Vaytiv TOS payments auto-post to the patient account

Send copay text using Mobile Pay

Precert Work Screen

Referral Work Screen

4. Timely Billing

  • Send Statements Promptly: After insurance has processed a claim, send a clear, itemized bill to the patient as soon as possible.
  • Electronic Billing: Use electronic statements and reminders via email or text to reach patients quickly.
  • Follow-Up Reminders: Automate reminders for unpaid bills at regular intervals (e.g., 30, 60, 90 days) and escalate efforts over time.

MediSYS Tools:

PatienTXT Mobile Pay

5. Use a Compassionate, Patient-Centered Approach

  • Friendly Communication: Ensure all billing communications are polite, professional, and sensitive to the patient’s financial circumstances.
  • Offer Financial Counseling: For patients facing difficulties, offer financial counseling to discuss payment plans or potential assistance programs.

6. Employ Efficient Tracking and Follow-Up Systems

  • Automated Tracking Software: Use billing software to track patient balances, send reminders, and flag overdue accounts.
  • Staff Training: Ensure billing staff is trained in effective collection practices, and they are well-versed in handling patient queries and disputes.

MediSYS Tools:

Automated Collection process

Alerts auto-added to account showing collection process

7. Escalate to Collections When Necessary

  • Final Notices: After a reasonable time (e.g., 90-120 days), send a final notice before escalating to collections.
  • Collections Agency: If all attempts fail, partner with a reputable collections agency, while remaining compliant with regulations like HIPAA and the Fair Debt Collection Practices Act (FDCPA).

MediSYS Tools:

Turn over to the collections process

Auto generates a report to send to the collection agency

8. Incentivize Early Payments

  • Offer Discounts for Prompt Payment: Provide small discounts or incentives for patients who pay their balances within a short timeframe.
  • Set Deadlines: Make sure patients understand the importance of paying promptly and provide clear deadlines in all communications.

9. Regularly Review and Optimize Processes

  • Track Collection Metrics: Regularly review collection success rates, aging reports, and the percentage of balances sent to collections.
  • Patient Feedback: Gather feedback from patients about the billing process and make adjustments to improve clarity, accessibility, and satisfaction.

MediSYS Tools:

Aged Financial Report

Collections Analysis Report

AR Summary Report for Collections

Active Collections Analysis

By implementing these best practices, healthcare providers can improve patient satisfaction while ensuring steady and timely collection of patient balances. If you are struggling in any of these areas or would like more assistance, MediSYS would love to help! Please email us at [email protected] for more information.