Payment Collection Methods For Doctors, Dentists, and Health Care Services

With so many advancements in the medical field, it’s surprising to see how many practices are still using outdated payment processing methods. 

Patient care is obviously the top priority for doctors, dentists, orthodontists, surgeons, and other healthcare providers. But beyond that care, you need to consider the total patient experience. How important is the payment process for patient experience? Probably more important than you realize.

In fact, 65% of patients say they would consider switching healthcare providers for a better payment experience, according to a recent study. 

People, in general, don’t like paying for medical expenses. So when you pair these costly bills with a poor payment experience, the final result could leave a bad taste in your patients’ mouth (no pun intended for dentists). 

We created this guide to help doctors, dentists, and other healthcare professionals understand the best way to accommodate patient payments. 

In-Person Payment Methods

A seamless in-person payment collection process will help you get paid quickly, efficiently, and without having to send out past due notices. Policies obviously vary from practice to practice, but I’m sure most of you would prefer getting paid immediately for your services, as opposed to mailing paper invoices and collecting checks via snail mail at a later date. 

For collecting payments at the office, you want to offer as many different options as possible. In addition to cash or check, you should also be accepting credit cards and debit cards. 

I know that some cards are more expensive to process (like American Express), but you should still be taking every major card. Allow patients to pay with alternative payments as well, like HSA cards and digital wallets (Apple Pay, Google Pay, etc.). 

Obviously, some visits will be subject to claims and payments from insurance companies. But at a minimum, you can use these various in-person payment methods for co-payment collections.

Online Payment Methods

In addition to collecting payments in the office at the time of an appointment, you can also streamline your collections by accepting online payments. This is significantly more efficient than mailing paper invoices and waiting for checks.

Think about how long that takes. First, someone in your office needs to generate the paper invoice. Then, that needs to be addressed, stamped and mailed. Let’s assume that the patient decides to pay the bill immediately after opening the mail (we both know that’s rarely the case). You’re still looking at a week or two before that payment is back in your office. But the process doesn’t stop there. Now that check must be deposited, which could take another few days to clear.

Overall, this is just a hassle for everyone involved. You know what isn’t a hassle? Online payments. 

You can send a digital invoice to your patients via email and let them pay using an online payment gateway. It’s even possible to use an online gateway to set up recurring billing for payment plans, which most patients find enticing. 

When collecting online payments, you should be offering as many options as possible (just like you do in-person). 

In fact, online payments can be even more flexible. For example, you could add a PayPal checkout button to your medical billing service. That’s not an option for in-person payment collection.

By giving your patients as many choices as possible, it will accommodate a wide range of preferred payment methods. 

Payment Policies

Another way to streamline your payment collection process is by implementing clear policies. Make sure your patients understand these policies and train your staff accordingly to accommodate those needs.

Transparency in your collection policy will eliminate billing inconsistencies. This will make it easier for your staff and accounting department to collect payments accordingly from patients and insurance companies alike. They’ll also know how to respond if an issue arises.

Another reason to clearly identify your payment collection policies is so that you can work out payment plans or financial assistance ahead of time. This is much easier to do now initially, as opposed to after the fact.

Medical debt is a real problem in this country. In fact, More than 20% of adults in the US have not undergone a medical test or treatment because of the cost. 32% of adults have postponed medical care because of the cost. Many people assume that medical debt is caused by major accidents or expensive surgeries. But studies suggest that the majority of medical debt starts with a simple office visit.

As most of you know, talking about payments can be a sensitive topic for patients. There is a fine line between patient care and the business side of running a medical practice. 

So having clearly defined payment policies will always be in the best interest of the patients and your office alike.

Payment Technology

It’s surprising to see how many doctors, dentists, and healthcare professionals are using outdated payment technology. 

When was the last time you upgraded your hardware and software? If you have to think about that answer for more than a second, it’s probably been too long.

Old countertop systems are difficult to integrate with new technology. Plus, these outdated machines can slow down your collections process. Furthermore, outdated payment processing hardware may not be PCI compliant, which can lead to other problems for your practice. 

New payment acceptance technology will also make it much easier to accept alternative payment methods, like mobile wallets. So make sure you’re evaluating the technology you’re using both in-person and online for the most efficient experience. 

Final Thoughts

Here at Merchant Cost Consulting, we help dentists, orthodontists, oral surgeons, doctors, and other healthcare professionals across the country. 

As you’re evaluating your payment collection methods, you should also be thinking about the costs associated with those transactions. Our team can help you lower your payment processing costs without switching providers. 

Contact us today for a free audit and analysis. We’re happy to answer any questions you have on the subject.