Mastering Collections in Healthcare Revenue Cycle Management

Managing collections effectively is one of the most critical components of a healthy revenue cycle for any healthcare practice. When patient balances and insurance payments go uncollected, it directly impacts your ability to sustain operations, invest in staff, and provide quality care. Understanding the collections process and implementing proven strategies can help your practice maintain steady cash flow while preserving positive patient relationships.​

Understanding the Collections Process

Collections in healthcare involves following up on overdue payments from both insurance payers and patients to ensure funds are recovered and accounts are properly settled. This process requires consistent communication, organized tracking systems, and a strategic approach to prioritizing accounts based on their age and likelihood of payment. Many practices struggle with collections because they lack dedicated resources or systematic processes to manage aging accounts receivable effectively.​

The collections phase sits at the end of the revenue cycle management process, but its success depends on everything that came before it. When medical coding is accurate and billing is submitted promptly, collections become significantly easier. Clean claims that go through proper verification reduce denials and speed up the entire payment timeline.​

Best Practices for Improving Patient Collections

Creating clear communication channels with patients about their financial responsibility is essential for successful collections. Patients who understand their payment obligations upfront are more likely to pay on time. Providing transparent cost estimates before services are rendered, offering flexible payment plans, and making multiple payment options available can significantly improve collection rates.​

Automation has become a valuable tool for enhancing collection efficiency in modern healthcare practices. Automated payment reminders through text messages and emails help keep patients informed without requiring constant manual follow-up from your staff. These systems can track claims at every stage, identify bottlenecks, and help prioritize which accounts need immediate attention. Many practices find that implementing digital payment portals makes it easier for patients to pay their balances conveniently from home.​

Strategic Approaches to Accounts Receivable Management

Monitoring your accounts receivable metrics regularly allows you to identify patterns and adjust your collection strategies accordingly. Industry benchmarks suggest that practices should aim to collect at least 90 percent of patient balances, with a focus on reducing the number of days accounts remain outstanding. Breaking down performance by staff member or location can reveal training opportunities and workflow improvements that strengthen your overall collections process.​

Educating patients about their insurance coverage and billing processes reduces confusion and improves payment rates. Many patients simply don’t understand their financial obligations in healthcare. Providing clear explanations about what their insurance covers, what they owe, and when payment is expected creates transparency that benefits both your practice and your patients. This educational approach builds trust while improving your bottom line.​

Ready to Optimize Your Collections Process?

Healthcare practices across the country experience an average 25 percent increase in revenue when they partner with experienced revenue cycle management experts who understand the complexities of collections. At AIMA, we handle follow-up on overdue payments, work directly with payers and patients, and implement proven strategies to recover outstanding balances while maintaining positive relationships.​

Our team has been helping physician practices, surgical centers, and laboratories improve their commercial operations since 1995. We only bill our clients for what we collect, which means we’re invested from day one in optimizing your collections process and ensuring sustainable growth for your practice.​

Contact AIMA today to learn how our comprehensive revenue cycle management services can transform your collections process and boost your cash flow.