How to Track and Collect Patient Co-pays and Deductibles to Maximize Medical Billing and Collections for Better Cash Flow

Managing your practice's daily operations can be challenging as a healthcare provider, particularly when it comes to maximizing medical billing and collections for better cash flow. Maximize Medical Billing and Collections

While your patients are your top priority, it can be tough to focus on their needs if you are distracted by all the administrative tasks required to keep your office operating efficiently, including patient payments. 

Without consistent payments, your practice's cash flow will suffer. However, how do you effectively keep track of who owes what? Insurance companies, such as patient co-pays and deductibles, vary from one to the next, making this process complex and error-prone, which, in turn, threatens cash flow revenue. 

In contrast, if you can nail this tracking and collection process, it will positively affect cash flow management and your practice's financial security. Here's what to consider. 

5 Tips for a More Optimal Medical Bill and Collection System

Wondering how to maximize collections from patient services billing? Want to spend less time worrying about tracking and collecting payments so that you can provide a more optimal patient experience?

If so, consider these five tips. 

1. To Maximize Medical Billing and Collections for Better Cash Flow, Ask for Immediate Payment

One of the most effective approaches to collecting co-pays and deductibles is encouraging patients to pay during service. To do so, consider the patient experience by offering simple-to-use digital payment platforms and user-friendly forms. 

Some practices offer a prompt discount to encourage immediate payment. However, that's not necessary if you are organized, communicative, and flexible — you can still provide an excellent patient experience. For example, offer payment options if the total balance cannot be paid on the spot, like setting up a recurring payment on a credit card for larger amounts. 

If this is an area of focus for your practice, create and implement an upfront payment policy. This formal policy should be provided to patients before their visits. In this policy, you can include information on payment options, health insurance plans, collection efforts, billing practices, etc. 

2. Be Upfront and Communicative 

Patients shouldn't be surprised. Before their appointment, make it clear how much the service costs. To streamline this process, assign one staff member to identify which patients have a co-pay and which must pay a deductible. When you assign this individual, there must be some responsibility and accountability — or the risk of human error may increase.

You can also improve communication and understanding by helping your patients better understand the basics of health insurance. Data shows that up to 77% of Americans are confused by health insurance terms, including co-pays and deductibles. Invest in staff training so your office team can confidently explain patient bills and payment expectations.

3. Leverage Payment Technology to Maximize Medical Billing and Collections for Better Cash Flow

In today's tech-driven world, patients expect the same experience from their healthcare provider as they do elsewhere. They want personalized, digitally connected, and convenient experiences.

For co-pays and deductibles, you can send patients an SMS or email so that they can easily access a payment page. Patients can pay their balance with just one click, improving satisfaction and a higher percentage of patients who pay on time. 

In addition, AI-powered healthcare solutions can help you improve and automate aspects of revenue cycle management. Utilize the latest technology to improve medical billing and collection processes, including patient payments. 

4. Conduct Audits to Encourage Improvements 

Tools are available, such as the NextGen Copay Audit EPM Report, which allows you to see what's working and what's not. You can view a report card based on your front desk's operations and collection process with just a few clicks. 

For example:

• View percentages of correct co-pays so you can see how accurately your team is collecting the right amounts. Both underpayment and overpayment hurt your cash flow, as the latter requires additional resources to refund payments and could hurt your reputation. 

• Conduct a deep dive into which employees dealt with which patients so you can determine patterns or areas that require additional training.

• Analyze payer trends to determine which patients contribute to a less-than-ideal collection process. This insight can help you better understand which patients require information on your policies and the actions taken when payments aren't made. 

5. Partner With a Revenue Cycle Management Partner

Working with expert healthcare revenue consultants can help automate and streamline your practice's most complex and time-consuming tasks, improving your cash flow. By better configuring your practice management's patient portal, you can more effectively estimate and collect patient payments — a task that a revenue cycle management partner can assist with. 

Such a partner can also collaborate with your office staff to implement workflows that enable patients to pay before their visits. Learn more about improving your practice's financial performance.

TempDev Can Help!

Have you been wondering how to optimize the medical billing and collections for your practice? Are you looking for medical billing and collection support?

If so, TempDev offers a wide range of solutions and consulting services. Get the right solutions for your business while maximizing your NextGen EHR and EPM experience.

Still have questions? Contact TempDev today!