Collecting all the payments at the time of service (TOS) is one of the best ways to ensure your healthcare practice stays financially healthy. Whether it’s a co-pay, deductible, or an estimated balance, getting payments upfront helps reduce unpaid bills, improves cash flow, and saves time on chasing payments later.
But let’s face it: asking for payments can feel awkward for both staff and patients. The good news? There are straightforward steps you can take to make TOS collections smoother and more effective—for everyone involved.
When patients don’t pay at the time of their visit, it can lead to higher accounts receivable, delayed revenue, and more administrative work. Plus, patients often find it easier to pay right away when the service is fresh in their minds rather than weeks later when they get a bill in the mail.
Collecting payments upfront also builds trust. When patients clearly understand what they owe and why, it reduces confusion and stress for both parties.
The first step is to make sure your patients know what to expect.
Talk About Payments Early: Let patients know about payment policies when they book their appointment. For example, remind them to bring their co-pay or explain that deductibles may apply.
Put It in Writing: Include your payment policies in welcome packets, emails, or on your website. Keep the language simple and easy to understand.
Train Your Team: Make sure your staff understands these policies, too, so they can confidently explain them to patients.
Technology can make TOS collections easier and more efficient:
Verify Insurance Ahead of Time: Use tools to confirm insurance coverage and figure out what the patient owes before their visit.
Give Cost Estimates: Share an estimate of the patient’s responsibility ahead of time so there are no surprises.
Offer Easy Payment Methods: Equip your practice with a payment system that accepts cards, mobile wallets, and online payments.
Sometimes, the easiest way to collect is to get ahead of it. Here’s how:
Send Payment Reminders: Send a text or email before the appointment reminding patients of what they’ll need to pay.
Collect Deposits: For more expensive procedures, consider asking for a partial payment upfront.
Offer Online Payment Options: Let patients pay their co-pay or balance online before they even walk through your door
Talking about money can be uncomfortable, but a little training can go a long way.
Be Friendly and Clear: Teach staff to discuss payments in a professional but approachable way. For example, “Your co-pay today is $30. Would you prefer to pay with a card or cash?”
Practice Conversations: Role-playing common scenarios can help staff feel more confident when talking about payments.
Stay Consistent: Make sure everyone on your team delivers the same message to avoid confusion.
Not everyone can pay their full balance upfront, and that’s okay. Offering flexible payment options can help patients stay on top of their bills:
Installment Plans: Break larger balances into manageable monthly payments.
Discounts for Paying in Full: A small discount can encourage patients to pay their entire bill at once.
Third-Party Financing: Partner with a financing company to offer patients long-term payment options
Sometimes, patients hesitate to pay because they’re confused about their bills or worried about the cost. Here’s how you can help:
Educate Patients: Take the time to explain how insurance, co-pays, and deductibles work.
Fix Billing Errors Quickly: If a patient has a concern about their bill, resolve it as soon as possible to keep things moving.Follow-upp: If a patient expresses financial concerns, offer solutions like payment plans or discounts.
You won’t know if your efforts are working unless you measure them. Here’s what to track:
Collection Rates: How much are you collecting at the time of service compared to how much is owed?
Outstanding Balances: Are there fewer unpaid bills piling up over time?
Staff Performance: How well is your team doing with TOS collections? Are they following policies and handling conversations well?
Regularly review this data and look for areas where you can improve.
At the end of the day, patients want clear, straightforward billing. Here are some tips to keep them happy:
Be Transparent: Make sure patients understand what they owe and why. Avoid surprises.
Show Empathy: A little understanding goes a long way. Be flexible when needed.
Provide Great Care: When patients feel valued and respected, they’re more likely to follow through on payments.
Time of Service collections doesn’t have to be complicated or stressful. By setting clear expectations, using helpful technology, and training your staff to handle payments with confidence, you can make the process smooth for both your practice and your patients.
Remember, the goal is to collect payments while maintaining a positive patient experience. With a little effort and the right strategies, you’ll improve your practice’s financial health and build trust with your patients.
