Hospital collection costs increase when patient balances are collected before or after services are rendered, to address rising unpaid bills and financial challenges faced by hospitals.
Hospital costs to collect increase when collecting patient balances before services are rendered, in the form of deposits or upfront payments, due to hospitals adopting policies to reduce bad debt and charity care costs. This shift is to tackle the rising trend of patients not paying their bills, which has led to significant financial challenges for hospitals.
After services are rendered, hospitals may still need to follow up for outstanding balances, with payments typically received in phases over several months. This process involves assigning staff members to make collection calls and ensuring that the hospital receives the full payment owed.
In contrast, collecting patient balances during the service or during scheduling is not a common practice for hospitals, as upfront payments or post-service collection methods are more prevalent in the healthcare industry.
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