How to Maximize Collections from Patient Billing Services

Patient responsibility now accounts for nearly 30% of healthcare revenue, making patient collections a essential component of practice financial health. For Maryland medical practices, maximizing collections from patient billing is no longer optional; it is necessary for survival.

This guide provides actionable techniques to help your practice collect more of what patients owe while maintaining positive patient relationships.

The Patient Collections Challenge

In Maryland, these trends are especially relevant as healthcare costs continue to rise and insurance plan designs shift more responsibility to patients.

Strategy 1: Collect at the Point of Service

The single most effective strategy for maximizing patient collections is collecting at the time of service. Data shows that the probability of collecting a patient balance drops dramatically over time:

To improve point-of-service collections:

• Verify benefits and calculate patient responsibility before the visit
• Communicate expected costs during scheduling or check-in
• Train front desk staff on collection conversations
• Accept multiple payment methods at the front desk
• Post a clear financial policy in your office

Strategy 2: Implement Pre-Visit Financial Clearance

Financial clearance before the appointment ensures there are no surprises for the patient or the practice. This process includes:

• Verifying current insurance coverage and eligibility
• Calculating estimated patient responsibility
• Identifying and resolving coverage issues proactively
• Contacting patients about expected costs before their visit
• Setting up pre-authorized payment arrangements for larger balances

Strategy 3: Optimize Your Billing Cycle

Speed matters in patient billing. The faster a statement reaches the patient after insurance adjudication, the more likely it will be paid. Optimize your cycle by:

• Submitting claims within 24 hours of service
• Following up on unpaid claims at 14-day intervals
• Generating patient statements within 48 hours of insurance payment posting
• Sending reminder statements at 30, 60, and 90 days
• Escalating collection efforts systematically

Strategy 4: Offer Financial Assistance Programs

Not every patient can pay their full balance immediately. Having structured financial assistance programs counterintuitively increases overall collections by keeping patients engaged in the payment process rather than avoiding it.

Effective financial assistance options:

• Payment plans: Structured monthly payments over 3-12 months
• Prompt pay discounts: 5-10% discount for payment within 10 days
• Hardship programs: Reduced rates based on income verification
• Sliding fee schedules: Especially for uninsured or underinsured patients

Strategy 5: Use Data to Drive Decisions

Effective patient collections require analytical approaches. Key metrics to track:

• Patient AR aging: What percentage of patient balances are over 60, 90, and 120 days?
• Collection rate by payment method: Which methods yield the highest completion rates?
• Statement effectiveness: What percentage of patients pay after each statement?
• Payment plan compliance: What percentage of patients on plans complete them?
• Bad debt write-off rate: What percentage of patient balances ultimately go uncollected?

Strategy 6: Leverage Professional Billing Services

Professional medical billing services offer dedicated resources to patient collections that most practices cannot replicate in-house. Benefits include:

• Dedicated patient billing specialists trained in collections
• Automated statement generation and delivery
• Advanced payment technology (online portal, text-to-pay)
• Systematic follow-up processes
• Patient-friendly communication that preserves the provider-patient relationship

Strategy 7: Address Denials That Create Patient Balances

Many patient balances are caused by claim denials that should have been paid by insurance. A strong denial management process reduces inappropriate patient billing and improves overall satisfaction.

• Appeal all inappropriate denials aggressively
• Track denial patterns by payer and reason code
• Implement front-end processes to prevent common denials
• Educate patients about their appeal rights
• Never balance bill patients for payer disputes

Strategy 8: Communication is Key

Professional, patient, and persistent communication is the foundation of effective patient collections:

• Send billing communications through patients' preferred channels
• Use plain language, not medical or billing jargon
• Provide clear explanations of what insurance paid and what the patient owes
• Respond to billing inquiries within 24 hours
• Train all staff on empathetic financial conversations