Healthcare costs are soaring, and patients are footing a larger share of the bill. With higher deductibles, co-insurance, and surprise billing still affecting millions, medical practices face increasing challenges in ensuring timely payments while maintaining trust and satisfaction with their patients. How can practices achieve financial stability without placing undue burden on patients? Adopting a thoughtful, transparent, and patient-centered approach to billing and collections.

This article will explore how rising healthcare costs impact patient collections, the importance of fostering trust with transparency, and actionable steps your practice can take to improve collections while building stronger patient relationships.

A Changing Financial Landscape in Healthcare

Patients now bear a significant share of healthcare costs, with deductibles and co-insurance amounts steadily rising over the last decade. According to a Kaiser Family Foundation study, the average family premium for employer-sponsored health insurance jumped by 47% in the past ten years. Meanwhile, about one in five households reports having unpaid medical bills.

This shift in financial burden has led many patients to delay or forgo essential treatments. At the same time, healthcare providers struggle with unpaid invoices, increased bad debt, and accounts receivable balance challenges. Striking a balance between collecting payments and maintaining positive patient relationships is critical for medical practices navigating this landscape.

Enter the No Surprises Act, implemented in 2022, which requires medical providers to offer greater price transparency. The act protects patients from unexpected bills due to out-of-network care and mandates good faith estimates for uninsured patients. Compliance with this legislation presents an opportunity for providers to rebuild trust and streamline collections through better collaboration with patients.

Why Transparency and Trust Are Essential

Billing practices shape the overall patient financial experience, which is increasingly tied to patient satisfaction. Patients who feel empowered with upfront, clear information about financial responsibilities are more likely to proactively manage payments.

Transparency not only fosters trust but also avoids misunderstandings and disputes. For example, providing accurate cost estimates and explaining charges in plain language reduces confusion. When patients clearly understand what they owe and why, they are more likely to pay on time and remain loyal to the practice, preserving long-term relationships.

Steps to Improve Patient Collections

Improving patient collections requires a combination of transparency, communication, and modern tools. Below are actionable steps and insights:

1. Provide Upfront Cost Estimates

Patients want clarity about what they owe before services are rendered. By offering detailed cost breakdowns and good faith estimates, you demonstrate respect for their financial situation and empower decision-making. Use technology, such as a Patient Responsibility Estimator, to calculate accurate costs quickly and efficiently.

2. Incorporate Flexible Payment Options

Offering multiple payment avenues, such as online payments, mobile apps, and electronic bills, simplifies the process for patients. Mobile payment systems provide added convenience, allowing patients to settle bills from anywhere at any time. Additionally, implement self-managed payment plans, which allow patients to break large bills into smaller, manageable installments.

3. Train Your Team

Make sure your staff is well-trained in handling billing discussions. Equip front-office personnel with scripts like “How will you be paying today?” instead of “Will you be making a payment?” This subtle but significant shift demonstrates confidence and encourages payment at the time of service.

Additionally, ensure your staff double-checks patient information during the scheduling and intake to minimize denied claims. Billing errors, such as incorrect names or insurance details, are some of the most common causes of denials and slow payment cycles.

4. Leverage Technology for Collections

The modern patient expects a seamless digital experience. Invest in a strong patient portal that integrates billing and payment functions. Enable automated payment reminders, electronic statements, as well as secure online payment capabilities to speed up collection cycles and reduce administrative burdens.

Adopting modern tools may also improve compliance with the No Surprises Act, ensuring patients are fully informed of their financial responsibilities upfront.

5. Build a No-Stress Billing Process

The mission of medical practices goes beyond financial transactions. For practices, especially Direct Primary Care (DPC) providers, the focus is on patient care and long-term relationships. Many DPC doctors avoid sending patients to collections altogether, citing the potential for distrust and damaged relationships. Instead, they emphasize trust-building measures like transparent billing and flexible payment frameworks to minimize financial hardship.

Catering to the emotional burden of medical bills by prioritizing user-friendly billing experiences helps humanize a process that can often feel mechanical.

6. Avoid Billing Mistakes

Preventive measures are far more effective than reactive ones. Here’s what to keep in mind:

• Verify patient insurance details before rendering services.
• Regularly (quarterly) audit billing practices to identify inaccuracies.
• Educate patients on their financial rights, such as requesting a review of charges under the No Surprises Act.

Mistakes cost practices time, money, and trust, which are essential to successful long-term patient relationships.

What Patients Need to Know About Their Rights

Patients have rights under several federal protections, and understanding these can help both providers and patients maintain trust. For example:

• The No Surprises Act prevents patients from receiving unexpected out-of-network bills in specific emergency and non-emergency cases.
• Patients are entitled to good faith estimates for medical care if they are uninsured or paying out of pocket.
• Debt collectors must comply with strict Fair Debt Collection Practices Act (FDCPA) guidelines and cannot harass patients.
• Patients can dispute inaccurate bills and seek financial assistance options when necessary.

By proactively educating patients on their rights and roles, you take an active role in fostering cooperation and accountability.

Mistakes to Avoid

To ensure efficiency and maximize collections, avoid the following pitfalls:

1. Neglecting to collect at the time of service: Reduce follow-ups by emphasizing upfront collections.
2. Failing to address denied claims: Establish a process to promptly review and resubmit denied claims.
3. Overlooking transparency: Surprise bills erode patient trust, so prioritize education and visibility about costs.
4. Using outdated payment methods: Paper bills no longer meet patient expectations. Offer digital alternatives for faster results.

Beyond the Transaction – Sustainable Patient-Provider Relationships

Improving patient collections is as much about relationships as it is about revenue. When your practice prioritizes transparency, trust, and convenience, patients feel valued. They become active participants in maintaining their health and meeting financial obligations. This dynamic isn’t just good for your patients; it’s essential for the financial sustainability of your practice.

Adopting the strategies above will help your practice create a patient-first collection process while improving cash flow and efficiency.

A Final Thought

At the heart of every medical bill is a patient seeking care. By balancing financial sustainability with compassion, your practice can stand out as patient-centered while achieving financial goals.

So take control of your practice’s finances today and see the positive impact it can have on your professional and personal life. We are here to guide you every step of the way.