Home / Articles / 7 strategies for improving self-pay patient collections

7 strategies for improving self-pay patient collections

December 5, 2012

Share:

With the increase in health plans requiring members to pay all or part of their office visits, practices are faced with the challenge of asking patients for full payment. This can be upsetting for the patients and uncomfortable for the staff who deal with them. Here are seven strategies for improving collections from self-pay patients:

1.    Determine financial responsibility. If a patient has insurance, gather information on the insurer, policy number and terms, and deductibles and copays. This is best done at the time of the appointment. For returning patients, confirm the original information and note any updates on insurance or financial status.

2.    Preauthorize credit card payments. If a patient uses a credit card, obtain preauthorization for amounts likely to be charged to it. Be sure to use a service that not only authorizes credit cards but also verifies checks.

3.    Prepare for time-of-service collections. When an appointment is made, remind the patient that payment is expected when the service is rendered. Update the patient’s payment information at the front desk at every visit and explain that full payment is due at the beginning (or end) of each visit. Train your front desk personnel to ask: “The outstanding balance on your account is ‘X’ dollars. Would you like to pay by cash, check or credit card?” If the patient can’t pay at check-in, make sure he or she doesn’t check out until an agreement is made on how the eventual payment will be handled.

4.    Offer a payment plan. Some patients won’t be able to pay their bill — particularly if it’s large, or deductibles and copays are involved. In such situations, offer a payment plan that’s been developed by your practice management consultant, CPA and an attorney. The plan should state the minimum balance to qualify for the payment plan, how much the patient owes each month, and how many months he or she has to pay off the balance. Your plan might state that, unless patients qualify for hardship status through a local hospital, they must pay 5% of their balances or $50 a month (whichever is higher).

5.    Set up prompt-pay discounts. Uninsured, self-pay patients will likely have difficulties paying the bill. Instead of turning them away, offer a discount for payment within certain time periods. For example, they might receive a 15% discount for payment on the day of the visit, 10% within 10 days, or 5% within 30 days — as long as they pay the full bill amount after 30 days.

6.    Payment system. When possible, send up to three statements and allow patients to check account balances and make credit card or PayPal payments via your website. Also accept a variety of payment types, such as credit cards, check cards, and eCheck / automated clearing house payments. The more flexible the payment options are, the more likely a patient will pay. But make sure you follow healthcare billing compliance requirements and patient data protection standards.

7.    Train office staff. It’s not easy to discuss financial accountability with a patient. Show your staff how to interact with patients about payment issues and assign experienced billing staff to address serious patient payment conflicts at the front desk.

For more information contact Bill Clayton at [email protected]

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

New Audit Standards for Entities with Fiscal Years Ending after December 15, 2021

Article

3 Min Read

Think inventory costs aren’t important? Your competitors disagree.

Article

3 Min Read

Cost Accounting: Don’t Let It Sit on the Back Burner

Article

10 Min Read

Shuttered Venues Get Federal Assistance

Article

6 Min Read

The nuts and bolts of parts inventory management

Article

3 Min Read

Smart Nonprofit Leaders Know How to Delegate

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.
  • Hidden
  • This field is for validation purposes and should be left unchanged.