How to surcharge responsibly: a guide for health providers
There are many different strategies that can be employed to reduce and manage patient debt in your practice. The best approach will depend on what suits the needs of your practitioners and practice management team, as well as the needs of your patient demographic and overall goals for your practice.
Below are five strategies to consider when looking at how to streamline payments, reduce patient debt, and improve cash flow.
1. Set clear payment processes and expectations
A clear and standardised payment process ensures that payments are handled consistently across the practice. Whether it’s upfront payments or claims with out-of-pocket costs, a clear process reduces the risk of missed or delayed payments. This also helps ensure that patient accounts are accurately tracked and managed, preventing confusion and issues down the line.
Start by clearly communicating your payment policies at the point of booking or during the patient intake process. Ensure that patients are aware of their responsibilities before, during, and after their appointment.
Tip: Consider ‘pay at booking’ or a payment hold which reserves funds for up to 7 days. Integrating payment collection at the time of booking not only reduces the risk of last-minute cancellations but also ensures that your practice receives compensation regardless of whether the patient attends.
2. Use a digital claiming solution
Switching from paper-based claims to digital submission can drastically improve your practice’s cash flow by speeding up claim processing times. Digital solutions allow you to submit claims directly to Medicare, private health insurers, and government schemes like WorkSafe Victoria, icare NSW, and Comcare.
Digital claims simplify and accelerate the billing process for both patients and practices. Depending on the insurer, this can mean instantly processing a claim on behalf of the patient, allowing them to pay only the out-of-pocket expense or receive quicker rebates. Alternatively, it may involve submitting an invoice directly to the insurer online, which speeds up approval and ensures faster payment.
A digital claiming solution with a quote function can also reduce the risk of outstanding invoices by allowing providers and patients to get a rebate estimate before submitting a full claim. This gives clarity on the expected reimbursement, reducing the risk of unpaid or partially paid claims and improving cash flow. For patients, it provides transparency on how much their health fund will cover, helping them understand their out-of-pocket costs upfront. This ensures smoother billing for practices and a clearer financial picture for patients, helping avoid surprises for both.
Tip: Choose a digital claiming solution that features automated validation and error detection to ensure that claims are accurate before submission. By reducing the risk of claim rejections and the need for resubmissions, you can cut down on administrative time and speed up payment processing.
3. Make sure you can access real-time reporting
By having visibility into outstanding balances, claim statuses, or settlement remittance, you can spot issues early and take corrective action before they escalate.
Tip: Tyro Health provides real-time reporting on key financial data, with filters to help practices quickly find the information they need. Through Tyro Health Online, practice managers and admin staff can access and download reports that detail invoice statuses and outstanding balances (per invoice). This level of transparency allows practices to make informed decisions, plan effectively, and quickly address any issues related to patient debt or delayed reimbursements.
4. Accept different payment methods and offer flexibility
Making it easy and convenient for patients to pay can significantly reduce outstanding balances and improve cash flow.
Tip: Consider accepting a broader range of card types (debit and credit), and digital wallets like Apple Pay1 and Google Pay2. Having more options available makes it easier for patients to pay, reducing delays in payment and the likelihood of outstanding balances.
Bonus tip: Having the ability to process payments for your practice through multiple channels — such as physical terminals, a digital payment solution, or payment links — can streamline payment collection, improve cash flow, and reduce the risk of outstanding patient debt by offering flexible and convenient payment options at the point of care.
With Tyro Health, you can process payments through a physical Tyro Health EFTPOS terminal, or digitally and with payment links through Tyro Health Online (THO). This omni-channel solution provides a more seamless payment experience, giving patients the flexibility to pay in person, online, or remotely, using their preferred method. With both EFTPOS and THO, practices can accept a full range of payment types—debit, credit, and digital wallets—and process payments both online and in-person, all within a single integrated solution.
Bonus tip: For larger out-of-pocket costs, consider offering an instalment plan that splits a payment over several weeks or months to help patients manage their costs while also reducing the risk of unpaid debts for your practice.
With Tyro Health Online, you can set-up an instalment plan for a patient’s out-of-pocket expense and automate recurring payments with flexible terms, such as choosing the number of instalments the amount will be split into and the frequency (weekly or monthly). Once a payment plan is set up and the patient pays the first instalment via a payment request link the system will automatically manage the schedule to process subsequent instalment payments and let you know if a payment fails.
5. Integrate payments and claims with your practice software
Integrating your claims and payment processes with software that you are already using in your practice streamlines your payment workflows, reduces manual data entry, and ensures that your financial reporting is accurate and consistent.
Tip: To maximise efficiency, integrate your practice management software with a payment and claiming solution that supports the ability to send and process payments, and report on invoice status and outstanding balances from your PMS.
With Tyro Health, you can simplify your payment workflows and enhance the payment experience for your patients through our integrations with over 100 practice management software (PMS) partners3. By using Tyro Health with your PMS, you can easily send payments and view financial reports without the need for manual data entry, making the process faster, more accurate, and less time-consuming for both your staff and patients.
Final thoughts
Reducing patient debt and improving cash flow requires a combination of clear policies, streamlined processes, and the right technology. By implementing digital solutions such as automated reminders, digital claiming, and integrated payment systems, you can minimise administrative burdens, speed up payment collection, and enhance both the patient experience and your practice’s financial health.
Disclaimers
1 Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries and regions.
2 Google Pay is a trademark of Google LLC.
3 Functionality differs for each insurer. Visit our help centre for more information.
