3 Easy Steps to Increase Upfront Point-of-Service Collections in Healthcare

While many healthcare practices struggle with declining Medicare payments and rising costs, some are thriving by mastering one critical area: point-of-service collections. The good news? With the right approach, any practice can transform their collection strategy into a powerful driver of financial health.

Why Are Point-of-Service Collections More Critical Than Ever?

The economic outlook for healthcare has changed significantly, driven by Medicare payment reductions, changing legislation and soaring operational costs. Looking ahead into 2025, Medicare payments under the Physician Fee Schedule are set to decrease by 2.93%, while 53% of practice leaders cite Medicare/Medicaid reimbursement rates as their top financial constraint. This shift has created a new imperative for practices: master point-of-service collections or risk further financial instability. 

With patient responsibility representing a significant portion of practice revenue and payment collection ranking as a critical concern for 43% of practices, the ability to collect effectively at the time of service has become a crucial differentiator between struggling and thriving practices.

Step 1: Accelerate Health Insurance Verification for Confident Collections

The foundation of successful point-of-service collections in healthcare lies in rapid, accurate insurance verification. Real-time eligibility verification empowers front desk staff to confidently collect the correct amount from patients. When staff can instantly verify coverage, deductibles and co-insurance, they can eliminate the uncertainty that often leads to missed collection opportunities. While you may think your staff have what they need from your Practice Management System, it’s critical to understand that not all automated verification systems can process this information in an easy-to-review manner. 

Choose a tool that goes beyond what your practice management system offers for ‘automatic insurance verification’. For example, look for a tool that offers rapid health insurance verification and a smart Staff Control Center Dashboard that are built to reduce the administrative burden on staff. The right tools at their fingertips will help staff speed up eligibility and benefits tasks — so you can always collect at the point of service.

This acceleration in verification speed directly translates to improved upfront patient collections and reduced back-end billing stalls. Accurate insurance data captured at the time of service also minimizes the possibility of claim rejections due to bad data. In some instances practices have even been able to drop claim rejections by 100%. By ensuring the accuracy of insurance information and patient data from the start, practices can save time during claims processing, speed up reimbursement and allow for a more streamlined revenue cycle.

Additionally, effective verification builds patient trust by offering clear, transparent communication about their financial obligations before treatment begins. When patients understand their expected costs upfront, they are more likely to make payments on time, reducing the likelihood of disputes or confusion later. This clarity enhances the patient experience, leading to higher satisfaction and loyalty. In the long run, a reliable verification process not only boosts immediate cash flow but also contributes to a healthier, more predictable financial foundation for the practice.

Step 2: Embrace Digital Payment Solutions

Digital payment solutions, particularly patient-led kiosks, are revolutionizing how practices approach collections. These systems offer privacy and convenience that traditional staff-based collections cannot match. One Revenue Cycle Operations Manager shares, “From what I’ve seen, patients are more willing to make payments privately, via the kiosk, than they are when asked to make payments in face-to-face interactions.” 

The success of patient-led collections is evident across multiple specialties. Centers for Advanced Orthopaedics maintains a consistent 72% co-pay collection rate through their self-service kiosks. Pulmonary Associates of Mobile achieves an impressive 92% co-pay collection rate, while Southview Medical Group collects 91% of co-pays at check-in. These practices demonstrate that patient-led payment solutions consistently deliver superior collection rates while improving the patient experience. You can too!

The data shows that practices implementing self-service payment options consistently experience higher collection rates compared to those relying solely on staff-based collections. Kiosks allow patients to easily make payments and eliminate the need for cash transactions, reducing the risk of handling errors. 

In addition to privacy, self-service kiosks offer significant operational benefits. By automating routine payment processes, practices can free up staff time, allowing them to focus on other essential tasks, such as assisting with patient care, scheduling follow-ups or handling more complex billing inquiries. This increased efficiency can lead to shorter wait times, faster check-ins and a more streamlined front office workflow.

Digital payment solutions also support a practice’s ability to track financial trends and payment patterns through integrated analytics. This data can be used to adjust collection strategies, identify gaps and improve future revenue cycles. Practices can leverage this information to create more targeted patient outreach, send reminders for missed payments or adjust policies based on collected insights. See how our clients leverage the Clearwave Staff Control Center to make it happen!

By embracing digital payment solutions, practices not only improve collection rates but also build a more adaptable and patient-friendly environment. These systems simplify the payment process, increase cash flow and support the practice’s overall financial health—all while offering patients the flexibility they increasingly expect in a modern healthcare setting.

Step 3: Expand Your Collection Scope

To maximize point-of-service revenue, practices must think beyond traditional co-pay collections. A comprehensive collection strategy should include past-due balances, estimated patient responsibilities and self-pay arrangements. By presenting patients with their complete financial picture at check-in, practices can capture a larger portion of patient responsibility upfront. This proactive approach minimizes the risk of unpaid balances accumulating post-visit and allows for more predictable cash flow.

This strategy has proven successful at practices like Concord Orthopaedics, where their automated estimation system has transformed their collection process. “With almost a click of a button, we get our patient’s eligibility confirmed, deductible balance and what their out-of-pocket responsibility will be for their visit. Then, we get that information to the patient,” explains CEO Jennifer White. 

By clearly communicating potential costs and offering flexible payment options, practices can enhance patient satisfaction and reduce the likelihood of billing disputes. Expanding the scope of collections helps create a culture of financial transparency, reinforcing trust and promoting a more efficient revenue cycle.

Transform Your Practice’s Financial Health

Make point-of-service collections your competitive advantage in a trying healthcare environment. Practices that implement these three steps create a strong foundation for financial stability and growth. This transformation isn’t just about collecting payments, it’s about creating a sustainable financial model that supports continued investment in quality patient care.

As we move further into 2025, practices that prioritize modernizing their collection processes will find themselves better positioned to navigate the challenges of reduced reimbursements and rising costs. Ready to take your practice’s profitability further? Clearwave’s latest HealthTech Survey, What Specialty Practices Use to Fuel Profitability, reveals essential insights including the top obstacles to patient acquisition for specialty practices, key cost-reduction and collection strategies for higher profitability, and main ways to overcome staffing costs and productivity setbacks.