Implement Credit Card on File Program to Increase Collections, Reduce A/R

We know patients are bearing more of the financial burden for healthcare, particularly in the form of High Deductible Health Plans (HDHPs), so it falls to the provider to collect the deductibles. How can you collect deductibles, co-pays and co-insurance, as well as electronically manage patient payment plans while reducing the associated labor and resource expense? Implement a credit card on file program is how.

A Credit Card on File Program facilitates the collection of a credit or debit card from each patient and requires this card to be used for co-pays, co-insurance and deductibles. You have the option of collecting an estimate of what is due at time of service, and/or charging the credit card when the payer pays the claim. Here are the benefits to your physician practice by implenting such a Program:

• Reduced days in accounts receivable.
• Improved cash flow.
• Elimination of statements.
• Electronic management of payment plans.
• Elimination of bounced checks.
• Elimination of the manual refund process and refund check expense.
• Reduced labor in daily reconciliation process.
• Elimination of cash drawers and change issues.
• Reduction or elimination of deposits.
• Facilitate faster check-in and check-out.
• Elimination of paper receipts.
• Elimination of collections expense.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.