The healthcare sector faces particular difficulties when trying to collect unpaid receivables. Medical debt is rarely a voluntary debt, in contrast to past-due accounts for almost any other type of business. The collection process can be tough to navigate because of the harsh circumstances that the majority of patients encounter due to health difficulties, the murky coverage provided by third-party payers, and hospitals’ desire to offer an extraordinary patient experience.

Implementing a strong pre-admission and time of service collection programme, as well as properly training and enabling your admissions team to inquire about outstanding accounts, are the most efficient ways to prevent old receivables. Unfortunately, no amount of operational procedure or training will be able to stop all past-due accounts. You may ensure that you recover as much of the money owing to your healthcare organization by avoiding these patient collection mistakes.

Patient collection mistakes can be costly for healthcare providers in a number of ways. Here are some of the most common costly mistakes that providers should try to avoid:

• Lack of Communication: One of healthcare providers’ most common mistakes is failing to communicate with patients about their payment obligations. Patients may need to be made aware of their financial responsibility, leading to confusion and frustration when they receive a bill.
• Not following up with patients: It’s essential to follow up with patients with outstanding balances to avoid unpaid bills piling up and worsening the provider’s cash flow. Reminders, payment plans, and collection agencies can help.
• Failing to verify patient insurance coverage: If a provider fails to verify a patient’s insurance coverage, they may provide services that are not covered, resulting in denied claims or a loss of revenue.
• Inaccurate coding: Incorrect coding can lead to denied claims or underpayments, both of which can be costly for providers.
• Delayed billing: Delayed billing can result in missed revenue opportunities and a reduction in cash flow.
• Inefficient collection processes: Inefficient collection processes can result in lost revenue, as well as increased administrative costs.
• Poor communication with patients: Poor communication with patients can lead to misunderstandings about billing and payment expectations, resulting in delayed or missed payments.
• Failure to follow up on unpaid claims: Providers who fail to follow up on unpaid claims may miss out on revenue opportunities and end up writing off balances that could have been collected.
• Incomplete or inaccurate patient information: Incomplete or inaccurate patient information can lead to denied claims or delayed payments, as well as increased administrative costs.
• Inadequate Training: Front desk staff and billing teams need to be trained on the proper collection process, including how to ask for a payment, when to offer payment plans, and how to handle patient concerns.
• Not verifying patient insurance information: Not verifying insurance information can lead to payment denials or delays, which can be costly for the provider and the patient.
• Inaccurate patient identification: Collecting accurate patient identification information is essential for providing safe and effective care. Mistakes in patient identification can lead to medication errors, incorrect treatment, and other serious complications.
• Inadequate patient education: Patients need to be informed about their healthcare options and treatment plans. Failing to educate patients about their condition and treatment options can result in non-adherence to treatment plans, poor outcomes, and dissatisfaction with care.
• Incomplete medical history: A complete medical history is essential for making accurate diagnoses and providing effective treatment. Incomplete medical histories can lead to incorrect diagnoses, delayed treatment, and other complications.
• Keeping unpaid accounts around too long: Your practice’s cost to collect from patients doesn’t just rise with time. The expenses for your third-party medical collection agency also depend on the age of an account. To make up for the extra time and money needed to collect older accounts, most agencies will charge a higher fee. It is advised to send your accounts no later than 120 days following delinquency for maximum recovery.
• Not Offering Payment Plans: Many patients may need help paying their bills upfront and appreciate payment plans allowing them to pay in installments.
• Not using technology to facilitate collections: Manual billing processes can be time-consuming and prone to errors. Healthcare providers can consider using electronic payment systems to streamline the payment process and improve efficiency.

In conclusion

Patient collection is an essential process in the healthcare industry, but it can be challenging for healthcare professionals to ensure accuracy and completeness. Patient collection mistakes can occur at various points during the patient collection process, which includes pre-analytical, analytical, and post-analytical phases.

To prevent these mistakes, healthcare providers can implement protocols and training programs for staff to ensure accurate and complete patient information is collected, provide patient education materials, and prioritize effective communication with patients. Regular audits and assessments of the collection process can also help identify and address any gaps or areas for improvement.