What is one purpose of financial counseling?

One key purpose of financial counseling is to minimize accounts receivable outstanding, particularly long-term payments. This aspect is crucial in a healthcare setting as it directly impacts the financial health of a physician practice. Financial counseling helps patients understand their financial responsibilities, payment options, and any potential costs associated with their care. By engaging in proactive financial discussions, the practice can better manage its cash flow and reduce the time that outstanding payments remain on the books.

Effective financial counseling supports patients in navigating their insurance benefits, payment plans, and potential financial assistance, which in turn can lead to quicker payments and reduced bad debt for the practice. This process ultimately contributes to a more sustainable revenue cycle management, ensuring that funds are available for operations, staff salaries, and ongoing patient care.