Somebody in your office is chasing patient balances between everything else they do. Maybe it's the front desk, maybe it's your biller, maybe it's nobody and the statements go out whenever there's time. That's usually where patient collections start slipping. It's just the money patients owe after insurance has paid its share, and it's easy to let slide. If you're ready to take some of it off your team's plate, contact our team and we'll talk through what might work for your practice. Not sure yet? Keep reading.
What Does It Mean to Outsource Patient Collections?
You hand the chasing to an outside team. Usually that's the statements and the follow-up calls, sometimes payment plans too, while your office stays the face the patient knows. Plenty of practices only outsource what happens after the visit. Providers of patient collections services don't all package this the same way, so get the scope in writing before anything else.
Who Should Own Each Step of Patient Collections?
Whoever actually has the time when it matters, and that's rarely the same person from start to finish. Think of it as three moments.
What Should Happen Before the Visit?
Check the patient's coverage and tell them roughly what they'll owe. Hearing "$180" at check-in tends to go down easier than finding it in a bill three weeks later. This is front desk or intake work, and when that team is buried, outsourced patient care coordinator services can take some of it off their hands.
What Should Happen at the Point of Service?
Ask for the copay and any old balance before the patient walks out. Kodiak Solutions, which studies provider payment data, recommends tightening this up and asking for a deposit when the patient's share is going to be big. Honestly, this one stays with your own staff. The patient is standing right at your desk.
What Should Happen After the Visit?
This is the follow-up work: statements that go out, calls to the patients who go quiet. It's the part most practices hand off first, because it's tedious and it always gets bumped to tomorrow. If you're looking at the bigger billing picture too, our guide to outsourcing medical billing services is worth a look.
What's the Difference Between an Outsourced Collections Team and a Collection Agency?
Mostly when they get involved. An outsourced team usually starts working a balance early and speaks for your office. A collection agency typically comes in later, after the account has gone delinquent and been handed off. Medical debt rules differ by state, so check any arrangement with your own counsel and ask the partner how they stay compliant.
Why Are Patient Collections Getting Harder?
Patients are carrying more of the bill, and a lot of it isn't getting paid. Kodiak Solutions analyzed claims from more than 1,850 hospitals and physician groups and found providers collected less than half of what patients owed in 2022 and 2023 (47.6%), down from 54.8% in 2021. The trend in patient collections is pointing the wrong way, and since many plans reset deductibles in January, the start of the year is often when balances jump.
What Are the Signs Your Practice Needs Help With Patient Collections?
Balances age while nobody has time to chase them. Some other things to look for:
- Statements going out late, or not at all
- Staff dodging collection calls because they're uncomfortable
- No one who can tell you how much is outstanding today
- Patients calling confused about what they owe
A couple of these showing up at once usually means the workload has outgrown the people.
What Mistakes Do Practices Make When Outsourcing Patient Collections?
Handing over accounts without deciding how patients should be spoken to. Your patients will still think the call is coming from you. A few more to avoid:
- Choosing on price alone
- Skipping a clear rule for what comes back to your team
- Treating compliance as a box to check later
Why Does Compliance Matter When You Outsource Patient Collections?
Because a patient balance comes attached to protected health information, like what the visit was for and who the insurer is. Ask to see the actual HIPAA, SOC 2, and ISO 27001 documentation from any partner you're considering. If you want to go deeper on billing and revenue cycle, our sister brand Vinali RCM focuses entirely on it.
Nearshore vs. Offshore Patient Collections: Which Is Right for You?
For calls with patients, nearshore tends to fit better. The team works hours that overlap with yours, so a returned call doesn't wait until tomorrow. Bilingual coverage helps too when a patient would rather talk in Spanish. Our guide to the benefits of nearshore outsourcing in Latin America goes into more detail.
How Do You Choose the Right Partner for Patient Collections Services?
Go with whoever can tell you plainly what they will and won't do. Here's what to look for:
- A scope in writing that you can actually follow
- Experience with healthcare balances in particular
- HIPAA, SOC 2, and ISO 27001 documentation you can ask to see
- Reports that make sense to someone who isn't a billing expert
- A respectful way of reaching patients, because they're your patients
One test that works: ask how they'd handle a patient who says they can't pay this month. If you'd like to talk it through for your practice, contact our team here.
Disclaimer: Collection rate figures come from Kodiak Solutions' analysis, Drawing the Line on Patient Responsibility Collection Rates, and are provided for general informational purposes only. This is not legal advice.
