Patient Receivable

What is a patient receivable?

A patient receivable is the balance a patient owes after insurance has paid: deductibles, copays, coinsurance, and non-covered services. It sits in a different aging bucket from insurance receivables and behaves nothing like them. As high-deductible plans have spread, the patient portion has grown into a substantial share of practice revenue, and it is the hardest portion to collect.

Why patient balances age badly

Insurance pays on a contract and a timetable; patients pay when they choose. Balances billed weeks after a visit, once the EOB finally arrives, have lost the connection to the service in the patient's mind. Statements go out, then go out again, and collection rates fall off sharply after 90 days. A practice with 25% of revenue in patient responsibility and poor collection discipline is effectively discounting a quarter of its work.

Collecting at the point of service

Verify eligibility and estimate patient responsibility before the visit, then collect the copay and estimated balance at check-in or check-out. Keep a card on file with authorization for the post-adjudication balance. Offer online payment and short payment plans for larger amounts. Every day the balance ages reduces the odds of collection, so the process change that matters most happens at the front desk, not in the billing office.