At a glance
As healthcare costs continue to rise, today’s patients are looking for a better financial experience. They expect more price transparency and greater access to digital payment options for patients. Learn how providers can increase collection rates by offering accurate, up-front estimates to patients and more ways to pay.
Key takeaways:
- Patients who have a positive financial experience are more likely to pay their medical bills on time and in full.
- When patients struggle to understand the cost of care upfront or don’t have access to convenient options, this can lead to unpaid bills and increasing levels of bad debt.
- Suppliers can take advantage of technology, such as Patient Payment Estimatesto offer a better payment experience to patients and improve patient collection rates.
A patient’s financial experience can directly impact collections and the entire healthcare revenue cycle. When the experience is positive, patients are more likely to pay, but when patients have a poor payment experience, invoices may remain in accounts receivable.
Every financial interaction providers have with patients, from shipping patient estimates In addition to offering payment options, it is an opportunity to improve the overall experience and increase collection rates at points of service.
What is the patient’s financial experience?
The patient financial experience describes how a patient perceives the value of care based on their financial interactions with a provider. It is formed from the time of registration, when providers first check that insurance details are up to date and look for missing active coverage. And the financial journey continues as providers use this information to calculate the patient’s financial responsibility with a patient estimate. Billing communication, access to digital payment solutions and payment plans, and collections activity also inform the patient’s financial experience.
Why Patient Financial Experience Matters for Collections
For providers, offering a positive financial experience can play a crucial role in collections. When the patient’s financial journey is seamless, it fosters trust between the patient and provider. Patients are more likely to receive the treatment they need and pay their medical bills sooner, and providers spend less time chasing collections. However, a negative patient financial experience can lead to dissatisfaction, resulting in delayed payments and increased collection activity.
The link between experience and payment behavior
Experian Health Survey on the State of Patient Access 2026 (SOPA) shows a clear link between financial experience and payment behavior. Just over 80% of patients say an accurate estimate helped them better prepare to pay for the costs of care. But when they don’t receive a clear estimate, nearly half (48%) of patients say they would postpone or cancel care. Additionally, 63% of patients also say they would be more confident paying for healthcare costs with a payment plan.
Impact on key revenue cycle metrics
Patients are more likely to continue treatment and pay sooner when they are better prepared to cover the cost of their medical bills and have clear pathways to make payments. and the impact on key revenue cycle metrics can be significant when patients pay on time and in full. Suppliers see days in accounts receivable decrease and gross collection rate increase. With fewer patient accounts moving toward collections, organizations can also experience lower delinquency rates and collection costs, while reducing the volume of patient care related to collections.
Common weaknesses that hurt collections
Common pain points that can hurt the patient’s financial experience and hurt collections include:
| Common weaknesses: |
| Increased health care costs: Paying for care has become more difficult in the last 12 months for 32% of patientsand fewer than two in five patients feel confident in their ability to cover necessary medical expenses. |
| Missing estimates: Almost eight in ten (77%) patients They believe it is important to get an accurate estimate before receiving care, but they only receive estimates from providers 45% of the time. |
| Surprises in medical bills: The accuracy of the estimates has improved over the past 12 months, but almost a quarter of patients’ final bills end up being much more expensive than the initial estimate. |
| Lack of payment plans: Many providers still do not offer payment plans, although 63% of patients They say payment plans help them feel more confident in their ability to cover their medical costs. |
4 Ways to Improve the Patient Financial Experience and Increase Collections
Below is a closer look at the key ways providers can deliver better financial experiences to patients and improve collection rates.
1. Provide accurate price estimates up front
Providers can help patients better prepare to pay their medical bills by sending accurate price estimates in advance. Digital tools, like those from Experian Health Patient Payment Estimatesallows providers to automatically generate patient-specific cost estimates based on insurance benefit data and rates from contracted payers. Quotes can then be sent to patients digitally via a mobile device with a secure text link or through a self-service web portal.
2. Simplify billing communications
After treatment, providers can improve patients’ financial experience by streamlining billing communications and making it easier to access and pay medical bills online. When patients can access a self-service portal to pay their bills, they can make secure payments and meet their payment responsibilities without waiting for bills to arrive. This can speed up checkout time and reduce administrative burden for busy front desk staff.
3. Offer flexible digital payment options
Patients want convenient ways to pay their medical bills and more flexible payment options. Offering payment plans helps patients divide the cost of high medical bills into more manageable amounts, while secure digital payment methods can make it easier for patients to pay their bill anytime, anywhere.
4. Use data to segment and engage patients
Collection Optimization Manager uses machine learning to score and segment patient accounts based on their propensity to pay, helping billing staff automatically know which accounts to prioritize. This improves the patient experience by accurately examining accounts so patients who do not owe any payments are not subject to unnecessary collection efforts.
The role of technology in improving the patient financial experience
Experian Health data shows that 70% of patients They want their healthcare experience to be like other experiences they pay for, while 59% of patients say they want more digital and mobile options for communicating with providers. From registration to budgeting, billing and collections, technology-based solutions like Patient Payment Estimates Help providers improve the patient financial experience by providing greater financial clarity and greater price transparency.
Frequently asked questions
The patient financial experience describes how patients perceive the value of care based on their financial interactions with a provider. Price transparency, pre-service cost estimates, billing, payment options and collections can shape the patient’s financial experience.
When patients have a positive financial experience, they are more likely to prepare for the cost of care and pay medical bills sooner. But when patients do not fully understand their financial responsibility before treatment or when estimates are inaccurate, late payments are common and accounts often end up in collections.
Providers can improve the patient financial experience by providing accurate, up-front estimates, streamlining billing communications, and offering flexible digital payment options. Tools like those from Experian Health Patient Payment Estimates can deliver personalized breakdowns directly to the patient’s phone and help improve price transparency.
Find out how Experian Health works Patient estimates The solution helps healthcare providers improve patient financial experiences and minimize revenue leakages.
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