How practices can get paid in the new era of credit reporting

Recent changes in credit reporting laws are transforming how medical practices handle overdue patient bills. Historically, unpaid medical debt could impact patients' credit scores. However, the Consumer Financial Protection Bureau (CFPB) proposed a new regulation in June 2024 that would prevent almost all medical debt from appearing on credit reports.

According to the CFPB, the rule change would eliminate exceptions that let lenders make lending decisions based on medical information. It would also ban credit reporting agencies from including medical debt on credit reports they send to creditors if the creditor is prohibited from considering it.

Some states have already enacted such laws. In 2023, both New York and Colorado enacted legislation that stopped unpaid medical debt from appearing on residents’ credit reports. In 2024, Virginia and Rhode Island followed suit, and New Jersey worked to remove $220 million in medical debt owed by residents. Other states have legislation in the works.

With this shift, healthcare providers may be looking for effective ways to get paid. The answer lies in improving the patient payment experience through clear communication, digital solutions, and proactive financial strategies. By putting patients first, practices can accelerate collections and strengthen relationships.

Whether you are an independent practice or a medical billing company that services them, here are tips to get paid and come out ahead.

When it comes to what patients like most about their patient portals, over 40% of patients chose digital payment options as a feature, according to our 2024 Patient Perspective report. By aligning with patient preferences and reducing friction in the billing process, practices can drive timely payments while maintaining trust.

Key strategies to put patients first:

By adopting these strategies, practices create a supportive environment that builds trust and encourages timely financial engagement.

Patients often delay payments due to confusion or difficulty navigating the billing process. Simplification is key to improving cash flow.

Below are actionable steps to simplify payments.

Make statements clear and accessible: Ensure patient bills clearly outline charges, services, and payment instructions to minimize confusion.

Use digital solutions: The shift toward digital payment solutions is transforming how practices manage collections. Technology enables faster payments, reduces administrative costs, and creates a seamless experience for patients.

Consider implementing these digital solution steps: 

Streamline claims: Implement electronic claims submissions to expedite insurance reimbursements and reduce administrative delays.

A simplified payment process enhances the patient experience and removes common barriers to timely payment.

When practices prioritize patient communication and offer flexible payment options, the benefits extend beyond faster payments:

By focusing on relationships, practices not only improve their financial health but also boost patient satisfaction.

The end of credit reporting for unpaid medical bills signals a need for healthcare providers to reimagine their payment strategies. Practices that embrace transparency, simplify processes, and leverage digital tools will not only accelerate payment collections but also enhance the patient experience.

Invest in patient-centric solutions to ensure faster payments, stronger relationships, and a thriving practice. Visit tebra.com/billing-payments to get started.