Optimizing revenue collection in today’s competitive healthcare environment is essential for ensuring your practice’s smooth operation and delivering quality care. While most practices focus on billing after services are rendered, capturing payments at the time of service (TOS) can significantly improve cash flow, reduce administrative costs, and decrease the risk of delayed payments. At Medisys, your partner for medical billing, you should be familiar with TOS collections and how they work so you can best navigate them.
Here, we detail TOS and medical billing services, how they work together, and why these steps help increase your practice’s cash flow, solve various operational challenges, and improve patient care through Time-of-Service collections.
What is TOS in Medical Billing
TOS stands for Time-of-Service collections in medical billing. Time-of-service is when patients pay at the time of service and do not wait until collection of it when services are rendered. This tends to increase cash flow, and fewer unbilled accounts must be worked through for billing in healthcare providers.
TOS collections include co-pays, deductibles, and other out-of-pocket costs the patient would pay upon visit. Paying at the time can reduce billing errors, increase revenue cycle management, and avert payment delays in healthcare practices.
Why TOS Collections Matter
Mental health services, such as psychotherapy, often involve recurring visits, making TOS collections even more critical. Properly managing mental health coding and using the correct CPT codes for psychotherapy ensures accurate billing and timely reimbursements. Here’s why TOS in medical billing is vital:
- Faster Reimbursements: Collecting payments upfront reduces the time spent chasing unpaid bills.
- Improved Revenue Cycle: Streamlined processes lead to fewer errors and denials.
- Better Patient Relationships: Transparent billing practices build trust and encourage timely payments.
Pre-Appointment Strategies for Effective TOS Collections
1. Transparency is Key
Transparency is key in setting expectations with your patients. Giving them accurate, upfront estimates of charges based on their insurance plans and expected services can go a long way in preparing them for payment. Using online tools, patient portals, or communication platforms that offer cost breakdowns will help your patients budget accordingly and reduce any surprises during their visit.
2. Insurance Verification Matters
Ensuring the accuracy of insurance details before the appointment can prevent discrepancies later. Confirming patient coverage and benefits helps identify and resolve potential issues before the visit. This proactive approach minimizes payment delays and ensures a smoother billing process.
3. Offer Pre-Payment Options
Give patients the option to pay a portion or the entire estimated bill before their appointment. Offering secure online or phone payment methods makes this process easier and more convenient for both parties. Collecting a portion of the payment upfront reduces the burden at checkout and improves your collection rates.
During the Appointment: Strategies to Collect Payments Effectively
4. Make Co-Pays and Deductibles Mandatory
Collecting co-pays and deductible amounts at the time of appointment is imperative. Making patients pay before services are rendered avoids unwarranted administrative costs for practice recovering outstanding balances. Offering several payment options, including credit/debit cards, cash, or online payments, makes this task less burdensome for the patients.
5. Engage and Educate
Educate your patients on their financial responsibility in the TOS collection process. Explain what they will pay for and answer any questions about their bill. Make sure to point out the importance of paying on time. When trust and transparency are established with patients, relationships tend to improve, thus encouraging timely payments.
6. Offer Flexible Payment Options
Offering flexible payment plans can help make payments more manageable for patients with more significant balances. Provide clear terms, deadlines, and even the possibility of early payment discounts. This flexibility boosts your chances of collecting the entire balance and helps patients avoid financial stress.
Additional Strategies to Maximize TOS Collections
7. Invest in Your Team
Your front desk team is vital in implementing your TOS collection strategy. You can improve your practice’s collection rates by training staff on your practice’s financial policies, payment options, and how to address affordability concerns with empathy. A knowledgeable and approachable staff will foster a positive patient experience and encourage timely payments.
8. Embrace Technology
Modernizing your billing process with Technology can significantly improve TOS collections. Patient portals that allow secure online payments, automated appointment reminders, and billing notifications can streamline collections. These tools make it easier for patients to pay and reduce administrative burdens on your team.
9. Use Data to Drive Decisions
Track your TOS collection rates and analyze areas for improvement. Gather data on patient payment behaviors to identify patterns and adjust your approach accordingly. Monitoring key metrics and patient feedback will help refine your strategy and improve your collections.
10. Financial Assistance Programs
For patients struggling with payment, connecting them with financial assistance programs can ease their burden. This helps to collect more revenue for your practice and reduces healthcare costs for your patients. The result is a win for both sides.
11. Clear Billing Statements
The billing statement patients receive should be easy to understand. It should have the service date, the provider’s name, itemized charges, and insurance coverage. A clean, structured bill will likely be paid promptly, avoiding confusion and delay.
12. Follow Up on Unpaid Bills
Don’t wait too long to follow up on unpaid bills. Sending reminders via statements, phone calls, or emails helps keep your practice’s payments at the forefront of patients’ minds. Prompt follow-ups increase the likelihood of quicker payment and prevent bills from becoming uncollectible.
Consider Outsourcing Your Medical Billing
Managing TOS in medical billing and mental health coding can be complex, especially for busy mental health practices. Outsourcing to a professional medical billing service like Medisys can help you:
- Streamline revenue cycle management
- Reduce administrative burdens
- Focus on delivering exceptional patient care
Conclusion
Maximizing TOS in medical billing is a powerful strategy for improving cash flow and ensuring the financial health of your mental health practice. By focusing on accurate mental health coding, using the correct CPT codes for psychotherapy, and implementing effective TOS collections, you can enhance revenue and provide better care for your patients.
Let Medisys guide you through the complexities of medical billing services so you can focus on what matters most—your patients.