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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.
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• 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).
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• 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.