5 Challenges for Medical Provider Collections

Many medical providers face issues collecting full compensation for their services to their patients. In addition to providing medical services, providers may need to take steps to manage collections to avoid revenue loss and financial difficulties. 

There are a few expected challenges when collecting payments from patients. Read the following to learn about these challenges and how to improve efficiency:

1. Complex Insurance Claims

One of the many problems with insurance claims is that there are many varying policies, limitations and conflicting coverages. A denied insurance claim can make it much harder for medical providers to receive payment for their services. 

It is often crucial to review and verify a patient’s medical coverage before providing services, such as co-pays and deductibles. If a patient’s insurance does not cover their medical needs, providers may need to review their options.

2. High Patient Bills

Providers and patients are both facing the difficulties of rising healthcare costs and high-deductible insurance plans. In many cases, patients are responsible for higher medical bills. This can make it harder for them to pay their bills as they take on more medical debt.

A possible way to collect payments for medical services is to provide transparent billing statements. These statements can clearly outline what a patient owes, when the payment is due and their available payment options. 

3. Ineffective Collection Processes

Medical providers often face difficulties collecting payments because of billing issues, inefficient collections and delayed payments. Some of these issues are the result of a lack of training.

Medical providers need to explore their options to improve the efficiency of collections. This could mean training staff on best collection practices and outsourcing with a collection agency. 

4. Issues With Patient Communication 

Some patients are not aware of their financial obligations and, as a result, fail to pay for their services. In some cases, a medical provider fails to notify their patients what they owe.

Establishing strong communication with patients is often essential to collections. Providers could set up automatic payment plans, payment notifications through email and text and automated calls to remind patients of their bills.

5. Technology Barriers

Many providers use outdated systems to collect payments. However, this could be creating an issue with both younger and older patients. Younger patients may not have access to outdated systems, and older patients may not know how to work online services.

Providers may need to explore their technology options to collect payments. User-friendly services could help patients make their payments.

Delayed payments can severely harm medical providers and their practices. Legal guidance can protect providers from financial strain and get payments back on track.