3 Ways Patient Financing Improves Collections for RCM Companies

Revenue cycle management (RCM) companies face a tough balancing act. On one side, providers need reliable cash flow. On the other hand, patients struggle with out-of-pocket costs that are higher than ever. Traditional billing strategies often leave money on the table, create friction with patients, and slow down collections.

That’s where patient financing comes in. By offering flexible, transparent payment solutions, RCM vendors can improve collection rates while strengthening provider-patient relationships. Here are three key benefits:

1. Faster Payments

When patients are faced with large, unexpected bills, many delay payment or avoid it altogether. A financing option removes that barrier by breaking balances into manageable installments.

RCM vendors who partner with financing providers often see collections accelerate because patients can say “yes” right away. Instead of waiting months or writing off bad debt, providers get paid quickly. According to the American Hospital Association, hospitals provided over $40 billion in uncompensated care in 2022. Financing solutions help reduce that burden by making bills payable sooner.

2. Fewer Defaults

Unpaid medical debt is a long-standing challenge in healthcare. The Consumer Financial Protection Bureau reports that medical collections still make up a large share of consumer credit issues in the U.S.

By offering a clear, patient-friendly path to pay, RCM vendors can significantly cut down on defaults. Flexible financing terms mean patients are less likely to abandon bills, which improves recovery rates across the board. Over time, this consistency in payments reduces the need for costly collections or write-offs.

3. Better Patient Trust

Collections aren’t just about dollars. They’re also about maintaining trust. Patients who feel pressured or ignored are more likely to leave negative reviews, switch providers, or disengage from care.

Financing shows patients that their providers care about both their health and their financial well-being. That strengthens retention, builds goodwill, and makes patients more likely to pay in full. In today’s competitive landscape, trust isn’t just nice to haven it’s essential.

The Bottom Line

For RCM companies, patient financing is more than a convenience, it’s a competitive advantage. Faster payments, fewer defaults, and stronger patient trust all translate into better collections and healthier provider relationships.

Solutions like Lane Health make it simple for RCM vendors to get started. With the Healthcare Spending Card¹, vendors can offer patients affordable, flexible payment options while earning 35 basis points on every transaction. It’s a win for both vendors and patients.

Learn more about how RCM companies partner with Lane Health to improve collections and patient satisfaction.