Collection Strategies for Medical Practices: A Complete Guide to Improving Cash Flow
Managing collections effectively is one of the most critical aspects of a healthy revenue cycle for any healthcare practice. Delayed or unpaid patient balances can strain cash flow, increase administrative workload, and impact overall financial stability. This guide explores proven collection strategies that medical practices can implement to reduce accounts receivable (A/R), improve patient satisfaction, and boost revenue. 1. Establish Clear Payment Policies Upfront One of the most important steps is to set and communicate clear payment policies before the patient’s visit. Patients should know what is expected of them financially, including co-payments, deductibles, and outstanding balances. Practices should provide written policies, post them visibly in the office, and explain them verbally during scheduling or check-in. Transparency reduces confusion and helps avoid payment disputes later. 2. Conduct Insurance Verification and Eligibility Checks Front-end insurance verifi...