How to Support Patients and Collect What You’ve Earned With Rising Healthcare Costs

July 8, 2026

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Why the old approach to patient collections isn’t working

With today’s rising costs, patients are likely to arrive at your front desk already financially stressed, confused about what they owe, and quietly deciding whether their visit is worth it. Traditional collection tactics — the 90-day paper statement, the collection agency handoff, the robocall — aren’t just ineffective in this environment. They can damage the patient-provider relationship and drive patients away.

To survive in this era of rising patient financial responsibility, practices can’t afford to act like debt collectors at the tail end of the revenue cycle. The most effective healthcare teams are proactive communicators, stepping in before the care journey goes off track and bills go unpaid. Read on to learn what’s driving the pressure your patients are feeling, and what your practice can do about it.

The financial stress your patients are facing

Healthcare costs have been climbing at a pace that’s hard to ignore. They’ve risen significantly across all coverage types, including employer plans, ACA marketplace plans, Medicare, and Medicaid. Just for employer-sponsored insurance, the average spend per person rose to $8,460 in 2026. That’s a 7.9% jump from 2025 and the steepest increase since the pandemic. More than half of workers now say they’ve cut discretionary spending to cover out-of-pocket healthcare costs, and 35% have taken on credit card debt to get by.

Behind those numbers are real people who could be choosing between prescriptions and groceries, or between a follow-up appointment and a car payment. Patients are already carrying that weight before they walk through your door. Add the stress of whatever brought them in to seek care, and that’s a heavy burden to carry into a clinical setting.

How HDHPs are shifting more pressure to patients

High-deductible health plans (HDHPs) are insurance plans with low monthly premiums that require patients to pay most costs out of pocket until they meet their annual deductible. For 2027, the IRS has set minimum deductibles at $1,750 for individuals and $3,500 for families, with out-of-pocket maximums climbing to $8,700 and $17,400, respectively. HDHPs have become the dominant coverage structure in the US — they now cover 58% of privately insured people.

The consequences go beyond financial stress. A longitudinal study published in JAMA Network Open found that adults with chronic conditions enrolled in HDHPs were less likely to receive recommended medical care — including clinic visits, prescription medications, and annual lab testing — compared to those in non-HDHP plans. As Johns Hopkins researchers noted, when patients can’t afford their premiums or face a high deductible, they’re more likely to skip preventive care. This means health conditions can go undetected until they’re harder and more expensive to treat.

Why financial transparency matters for patient care

When a patient doesn’t know what their care will cost, the stress compounds. High deductibles often dictate whether they come in at all. Patients might delay care. They no-show.

For the patients who do show up, receiving an unexpected invoice weeks later can quietly erode trust in your practice. That frustration quickly leads to complaints, negative reviews, and patient churn.

Three strategies for better patient collections

Improving patient collections doesn’t require aggressive tactics or hostile conversations. Better patient collections start with updated systems, clear communication, and a readiness to meet patients where they are.

Reduce payment friction with modern billing technology

People don’t always ignore medical bills because they don’t want to pay. Sometimes, paying the bill is simply too confusing. Modernizing your approach is good customer service and can help protect your bottom line. Frame these touchpoints as part of care coordination, not collections prep, and consider offering:

Card-on-file protocols. Patients authorize charges at check-in for any balance under a defined amount.
User-friendly payment options. With convenient options like ModMed^® Pay or text-to-pay links, patients can settle balances right from their phones.
Pre-visit cost estimates. Generate quotes, then send estimated costs via text or email so patients have time to prepare.

Get ahead of balances with proactive payment plans

Some patients cannot pay a large deductible in a single transaction. Consider offering a way out before they default. When payment plans are a standard option rather than a last resort, patients can avoid the potential embarrassment of asking for help. Here’s how to make that the norm:

Patient portal options. Let patients choose a payment plan directly in the billing portal without requiring a phone call.
System-triggered plans. Automatically present payment plans when an estimate exceeds a threshold that your policy dictates, not individual staff.
Proactive eligibility checks. Verify benefits before the appointment so your team can flag high-balance situations and start the conversation early.

Protect revenue and staff bandwidth with RCM services

Your front desk staff shouldn’t have to be full-time financial administrators. Juggling insurance eligibility, cost estimates, claims tracking, and denial management on top of patient care is a recipe for burnout and billing errors. A dedicated RCM professional helps carry that load so your team can stay focused on what they do best. Consider bringing in RCM specialists to help with these tasks:

Billing and claims tracking. Submitting, tracking, and following up on claims to help keep bills from aging out or getting lost in the queue.
Prior authorization handling. Specialized workflows track procedure and surgery authorizations, so patients aren’t caught off guard.
AR monitoring. Proactively flag bottlenecked balances and insurance friction points before they become bad debt.
Denial management. Use specialized AI to surface at-risk claims before submission, helping your practice improve clean claim rates.

Frequently asked questions about patient collections

From handling surprise estimates to introducing payment plans, answers to these questions can help make patient financial conversations less stressful for everyone involved.

How do I ask patients to pay at the time of service without it getting awkward?

The key is framing. Instead of asking whether a patient wants to pay, present payment as a standard part of the check-in process, just as you’d confirm patient information. When financial conversations are routine and judgment-free, they become less confrontational and more like care coordination.

What’s the best way to introduce a card-on-file policy?

Be specific about how card-on-file works. It’s helpful to patients when they understand the parameters. Let them know the charge threshold, how they’ll be notified, and that nothing will be processed above that threshold without their knowledge. Transparency about the process helps build trust, so patients can feel more comfortable saying yes.

How should staff handle a patient surprised by their estimate?

Validate first, explain second. Patients aren’t just frustrated by surprise payments; they could be frustrated with the insurance system or their health. Acknowledge their concerns and explain why the estimate is what it is, such as a deductible reset or a policy change. Then consider offering a payment plan that gives the patient somewhere to land without feeling cornered.

What’s the most effective way to collect a past-due balance at check-in?

Frame it as routine account maintenance, not a personal failing. Bundling a prior balance with the current visit cost, and presenting a payment plan that covers both, gives patients a clear, manageable path forward. This can help remove embarrassment or avoidance.

When should a practice offer a payment plan?

Proactively, not reactively. Instead of waiting for a balance to age into bad debt, build payment plans into your workflow, so patients have a clear, immediate way to handle their bills. It can help if they’re triggered as soon as an estimate exceeds a set number. Patients shouldn’t have to ask for help managing a cost your policy already considers high

How can a medical practice improve collections without adding to staff workload?

A combination of modern billing technology and RCM support can help reduce the burden on practice staff. Card-on-file protocols, mobile-friendly payment options, and pre-visit cost estimates help reduce friction for patients. A dedicated RCM specialist can help handle the back-end complexity, including claims tracking, denial management, and AR monitoring.

Easier patient collections with ModMed RCM Services

The practices that collect on time in today’s high-cost environment don’t need to be the most aggressive; they need to be the most proactive. They verify benefits before the appointment. They offer payment plans before patients default. They give their staff the tools and language to have financial conversations that feel like care rather than confrontation. When patients feel informed, respected, and supported, they’re more likely to complete their care, pay their balances, and come back. That’s better for patients and better for your practice.

The financial side of running a practice is complex, but it doesn’t have to fall entirely on your in-house staff. ModMed RCM Services can help manage the billing complexity, so your team can stay focused on providing high-quality patient care. Book time to explore ModMed RCM Services for your practice today.

This blog is intended for informational purposes only and does not constitute legal or medical advice. Please consult with your legal counsel and other qualified advisors to ensure compliance with applicable laws, regulations, and standards.

This page includes “forward-looking statements,” including information about solutions and features that are not yet available. The decision and timing regarding release and development of solutions and features may be subject to change. Actual solutions and features may differ materially from any of those expressed here or in other forward-looking statements. Any purchasing decisions made by you should be solely based on ModMed’s existing solutions and functionality.