Can a Medical Billing Company Help with Patient Collections?

One of the most challenging aspects of running a healthcare practice today is managing patient collections. With the rising costs of healthcare and growing patient financial responsibility due to high-deductible health plans, collecting payments directly from patients has become more difficult than ever. These challenges can impact a practice’s cash flow, create administrative burdens, and even affect patient satisfaction.

This is where a professional medical billing company can make a significant difference. While many assume billing companies only deal with insurance claims, the truth is that modern providers like Thrive Medical Billing offer full-spectrum revenue cycle management—including patient collections.

In this article, we’ll explore the growing complexity of patient collections, why they matter, and how partnering with a trusted medical billing company like Thrive Medical Billing can streamline the entire process, improve collections, and support your practice’s financial health.

The Growing Challenge of Patient Collections

Rising Out-of-Pocket Costs

With the shift in insurance models over the past decade, patients now bear a much larger share of healthcare costs. High-deductible health plans, coinsurance, and copayments mean that even insured patients may owe significant balances after services are rendered.

According to a recent survey, patient financial responsibility has increased by over 30% in the last five years, and the average collection rate from patients is only around 55%—leading to massive revenue leakage for providers.

Administrative Burden

Collecting payments is not just about sending a bill. It requires a well-orchestrated effort involving:

• Timely verification of insurance coverage

• Accurate patient billing

• Transparent communication about costs

• Follow-ups via calls, emails, or letters

• Managing payment plans or disputes

• Handling credit card processing and posting payments

Many in-house teams are not equipped to manage this workload efficiently, especially while handling front-desk duties and patient care.

Impact on Patient Relationships

Handling collections directly can create uncomfortable conversations between staff and patients. If not managed delicately, it can lead to patient dissatisfaction, negative reviews, or even lost clients.

This is where a third-party medical billing company like Thrive Medical Billing brings a professional, structured, and patient-friendly approach to collections.

How a Medical Billing Company Supports Patient Collections

1. Insurance Verification Upfront

Collections begin long before the service is delivered. One of the most important steps in improving patient collections is verifying insurance eligibility and benefits upfront. Thrive Medical Billing ensures that:

• Coverage is checked prior to the appointment

• Patients are informed about their financial responsibilities

• Estimates are provided for out-of-pocket costs

This transparency builds trust and encourages timely payment.

2. Accurate and Timely Patient Billing

Many collections issues stem from confusing or incorrect bills. A trusted medical billing company uses accurate coding, integrates directly with EMRs, and generates clear, easy-to-understand statements for patients.

Thrive Medical Billing ensures:

• Statements are sent promptly

• All charges are broken down by service, insurance payment, and patient responsibility

• Contact information is provided for questions or support

This clarity reduces billing disputes and increases the likelihood of payment.

3. Multiple Payment Channels

Convenience plays a big role in whether patients pay their bills. A professional medical billing company offers multiple payment options, such as:

• Online payment portals

• Mobile payments

• Credit/debit card processing

• Automated payment plans

• Paper checks

Thrive Medical Billing provides a secure, user-friendly portal for patients to pay anytime, anywhere—reducing friction in the collection process.

4. Payment Plan Management

For many patients, large medical bills can be overwhelming. Offering structured payment plans can make collections more achievable and maintain a positive patient relationship.

Thrive Medical Billing works with providers to offer flexible, automated payment plans that align with patient budgets while ensuring steady revenue for the practice.

5. Friendly but Firm Follow-Ups

Patient follow-up is critical in the collections process. Many practices struggle to find the balance between being persistent and maintaining patient goodwill. A trained medical billing company knows how to:

• Send courteous reminder emails and texts

• Follow up with professional phone calls

• Send notices for overdue accounts

• Offer assistance or answer billing questions

Thrive Medical Billing uses automated and manual outreach strategies to stay in touch with patients, ensuring bills don’t go unpaid simply due to forgetfulness or confusion.

6. Collection Agency Coordination (When Necessary)

In some cases, it becomes necessary to involve a third-party collections agency. A professional medical billing company can manage this process discreetly and in compliance with all regulations (e.g., FDCPA, HIPAA).

Thrive Medical Billing only refers cases to collection agencies as a last resort and ensures providers are informed and involved every step of the way.

7. Reporting and Performance Tracking

One of the key benefits of outsourcing collections is transparency. A great medical billing company provides detailed reports so providers can see:

• Collection rates

• Average days in A/R for patient balances

• Outstanding patient accounts

• Payment plan performance

Thrive Medical Billing gives practices full visibility into their financial health through custom dashboards and monthly analytics.

Why Outsource Patient Collections to a Medical Billing Company?

Expertise in Billing and Collections

Patient billing is a nuanced field that blends customer service with financial operations. A medical billing company brings deep knowledge, best practices, and industry tools that in-house teams often lack.

Reduced Staff Burden

By outsourcing collections, your front office staff can focus on patient care, appointment scheduling, and other essential duties—rather than chasing payments.

Better Collection Rates

Studies show that professional billing services consistently outperform in-house billing teams in both insurance claims and patient collections.

Improved Patient Experience

When billing is handled clearly, accurately, and professionally, patients feel respected and more willing to pay.

Why Choose Thrive Medical Billing for Patient Collections?

Thrive Medical Billing is a full-service medical billing company with extensive experience helping practices improve both insurance reimbursement and patient collections. Their team of certified billing professionals offers:

• Customized billing and collection strategies

• Secure, HIPAA-compliant payment systems

• Friendly and professional communication with patients

• Transparent reporting and dedicated account managers

• Integration with major EMRs and patient portals

Whether you’re a solo practitioner or a multi-location healthcare group, Thrive Medical Billing delivers scalable, results-driven solutions that increase your revenue while maintaining your patient relationships.

Final Thoughts

Patient collections are a vital part of the revenue cycle—and getting them right requires more than just sending bills. It demands strategy, professionalism, empathy, and persistence.

A reliable medical billing company like Thrive Medical Billing can significantly improve your collection rates while reducing administrative burden and enhancing patient satisfaction. From verifying insurance and billing patients accurately to offering flexible payment options and performing smart follow-ups, they handle it all.

If your practice struggles with patient collections, don’t leave money on the table or risk damaging patient trust. Let Thrive Medical Billing help you streamline your process, boost your cash flow, and focus on what matters most—providing exceptional care.