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The CFO's guide to point-of-service collections

    High-deductible health plans now account for more than 25% of commercially insured patients, up from less than 5% a decade ago. With that increase in high deductibles comes an increase in bad debt, forcing hospitals to shift a greater share of patient collections to the point of service (POS).

    Our research note highlights how POS collections can make a substantial difference in decreasing your organization's uncompensated care, and what you can do to improve and target your collections practices.

    Download the research note

    Key takeaways

    • Accelerate POS collections transition: Hospitals must shift a greater share of patient collections to the point of service to outpace expected increases in bad debt from high deductibles. The portion of patient debt collected at POS is increasing, but is not keeping up with the growth in patient obligations.

    • Implement a modest pre-payment policy: Asking patients for as little as $20 up front is the best tactic for maximizing POS collections. If received consistently from all patients, it can reduce bad debt to less than 4% of net patient revenue (NPR).

    • Target outpatient collections: As a percentage of net patient revenue, bad debt stemming from outpatient services surpasses debt from inpatient procedures—yet collections tactics are often underutilized in the outpatient setting where they are most effective. 

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