Medical debt continues to burden millions of Americans, making effective patient billing and collections essential for healthcare providers. With smart early intervention strategies, facilities can recover more revenue while improving patient satisfaction.
The Medical Debt Crisis
The scope of medical debt in America remains staggering. Recent data shows that approximately 15 million Americans have medical bills on their credit reports, representing $49 billion in medical debt. Even more concerning, 31 million Americans borrowed an estimated $74 billion in 2024 to pay for healthcare expenses.
A 2024 Commonwealth Fund survey found that 35 percent of those who were uninsured for all or part of the year reported having medical debt, while about four in ten adults (41%) report having debt due to medical or dental bills.
Time Is Critical in Collections
When managing patient debt, timing makes all the difference. The longer that past-due accounts go unaddressed, the harder it is to recover their aging patient balances. This is why picking a partner who utilizes a data-driven approach to understand which accounts should be prioritized is important to your financial strategy. The sooner past-due accounts are addressed, the higher the recovery rate, leading to fewer disputes.
But what if you could reach those patient accounts before they are written off to bad debt? This is where Early-Out Patient Billing comes in.
Early-Out Patient Billing: A Proactive Approach
Early-Out Patient Billing focuses on preventing losses and maximizing patient payments through proactive intervention, once insurance has adjudicated. At One Mnet Health, our patient-centric approach utilizes a blend of technology and specially trained live agents who are 100% healthcare focused and healthcare fluent to empathetically provide clarity and education to patients regarding their balances. For example, if a patient is unaware of their balance or has questions about why they have it, what it is for, and how they can pay in a manner that meets their financial situation, our live agents are fully prepared to answer the patient’s questions and provide meaningful direction to help them resolve their account balance as easily and smoothly as possible.
If patients are looking for flexible payment plans, our team is there to assist, along with our smart technology that enables them to set up payment plans that match their needs, while sending them financial reminders that help to keep them on track.
Core Benefits of Early-Out Patient Billing:
- Shortened patient revenue cycle
- Increased cash flow
- Reduced complaints and disputes
- Improved patient experience
- More staff resources available for patient care
What Patients Want: Most patients prefer financial counseling at first contact, and nearly two-thirds of patients want access to payment plans. Early-Out programs address this patient preference by offering:
- Multiple payment options, including customized payment plans
- Financial hardship programs
- Clear billing explanations
- Live agents
Results That Matter
Healthcare facilities implementing Early-Out Patient Billing strategies with One Mnet Health see significant improvements:
- 40-100% increase in monthly patient payments
- Dramatic reduction in bad debt write-offs
- Improved patient satisfaction through better financial experiences
One surgical hospital partnering with One Mnet Health for professional billing services increased cash flow by $1.8 million and reduced bad debt by $1.1 million in their first year.
The Path Forward
In today’s consumer-focused healthcare environment, patient satisfaction directly impacts financial performance. Effective Early-Out Patient Billing will require:
- Immediate engagement after insurance has adjudicated and before they’re written off to bad debt
- Personalized communication tailored to patient needs
- Flexible payment solutions that include payment plans and hardship programs
- Professional billing partners who understand healthcare collections
- Seamless transitions from early-out to traditional collections when necessary
Healthcare providers who embrace early intervention strategies create win-win scenarios: patients receive the support they need to manage medical expenses, while facilities maximize revenue recovery and maintain positive patient relationships.
To learn more about our financial services, including Early-Out Patient Billing, visit our Payments webpage.