Improving Patient Collections: Strategies for Better Cash Flow

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  • October 15, 2025
  • Amanda Davis
  • Patient Collections
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Improving Patient Collections: Strategies for Better Cash Flow

The Patient Collections Challenge

With rising deductibles and out-of-pocket costs, patient collections have become increasingly challenging. On average, practices collect only 60-70% of patient responsibility amounts, significantly impacting revenue.

Understanding Patient Financial Responsibility

Patients are now responsible for a larger portion of their healthcare costs. High-deductible health plans mean patients may owe thousands of dollars before insurance coverage begins.

Common Collection Challenges

  • Patients unable to pay large balances
  • Lack of clear communication about costs
  • Inadequate payment plan options
  • Delayed collection efforts
  • Poor patient experience

Effective Collection Strategies

1. Clear Communication

Provide transparent cost estimates before services, explain insurance benefits clearly, and send timely statements with easy-to-understand explanations.

2. Multiple Payment Options

  • Online payment portals
  • Payment plans for large balances
  • Credit card on file programs
  • Automated payment reminders

3. Proactive Approach

Collect payments at the time of service when possible, verify insurance benefits before appointments, and establish payment expectations upfront.

4. Technology Solutions

Implement patient payment portals, automated payment reminders, and text message notifications to make payments convenient for patients.

Best Practices

Train front desk staff on financial discussions, offer flexible payment plans, use automated collection workflows, and maintain a compassionate approach when discussing financial matters with patients.

Measuring Success

Track key metrics including:

  • Collection rate percentage
  • Days in accounts receivable
  • Bad debt write-offs
  • Patient payment satisfaction

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