The patient experience refers to the sum of all interactions patients have with their healthcare provider, including clinical encounters, physical environment, financial communication, and so more. And in an increasingly consumer-centric industry, delivering an exceptional patient experience can make or break a healthcare organization. Why? A positive patient experience centered on omnichannel communication improves patient satisfaction. And happier patients are more likely to refer friends and family, stay engaged in treatment plans, and most importantly, pay their bills in full and on time.
Optimizing the patient experience—including the patient financial experience—allows healthcare providers to achieve stronger financial results and promote financial sustainability. This includes investing in tools and workflows that enhance self-pay accounts receivable (A/R) recovery, decrease bad debt, and provide a patient-centric experience that ultimately improves overall revenue cycle management performance. In this article, we’ll show you how to improve patient engagement using technology and proactive workflows.
The Link Between Patient Experience and Revenue Cycle Management
There’s a direct positive correlation between the patient experience and revenue cycle management performance. This means improving the overall patient experience directly improves the entire healthcare revenue cycle, including scheduling, billing, and post-service collections. With a positive patient experience—particularly a positive patient financial experience—comes several financial benefits, including faster payment cycles, better collections, and higher patient retention rates.
The Medical Group Management Association (MGMA) continually emphasizes how digitally transforming and standardizing the healthcare revenue cycle can enhance the patient financial experience and support revenue cycle management efficiency. In addition, MGMA says integrating patient experience technologies (e.g., cost estimates, point-of-service collections, online bill pay, and payment plans) boosts patient satisfaction and key financial metrics like net patient revenue and clean claim rate. The association also reiterates the importance of monitoring patient satisfaction scores alongside revenue cycle management performance metrics such as collection ratios and denial rates, underscoring the interdependence between patient satisfaction and financial performance. Learn more about this later in the article.
The Financial Impact of a Poor Patient Experience
It isn’t difficult to understand why a poor patient experience can be detrimental to revenue cycle management. Patients who feel disrespected, confused, or frustrated by the billing process are less likely to pay their bills, leading to higher bad debt and delayed collections that can completely disrupt a healthcare organization’s cashflow. While some of these patients may call their provider to ask questions and seek clarification, others may completely disengage, leading to prolonged, aging accounts receivable and increased operational costs associated with patient follow-up. Ultimately, dissatisfied patients are less likely to return to the organization or recommend it to others, and they may even file complaints with payers, regulators, or on public platforms.
Best Practices to Improve Patient Financial Experience and Strengthen the Healthcare Revenue Cycle
Fortunately, there are steps providers can take to improve the patient financial experience, promote next-level patient engagement, and strengthen the healthcare revenue cycle. These include the following:
1. Communicate financial obligations proactively. Ninety-five percent of Americans say healthcare providers should tell them how much their care will be beforehand, but only 17% actually do. The takeaway? Leverage online payment portals, IVR systems, self-service kiosks, and automated reminders to provide clear, up-front communication regarding financial responsibilities, including cost estimates, payment options, and financial assistance.
2. Offer flexible payment options. Examples that improve the patient financial experience include interest-free or low-interest payment plans, online and mobile payments, and clear financial assistance policies.
3. Provide empathy when collecting patient balances. Ensure staff know how to communicate in a supportive and nonjudgmental manner. Patients who feel validated and respected are more likely to engage with staff and ultimately pay their balances.
4. Streamline billing processes. Simplify patient statements and ensure transparency to prevent confusion and promote timely payments. In some cases, statement redesign for consumer-friendly consumption may be necessary to improve the patient financial experience and patient engagement.
The Role of Technology in Enhancing Patient Financial Experience
Patient engagement solutions play a pivotal role in enhancing the patient financial experience. By reducing costs associated with manual payments and enhancing collections due to increased patient satisfaction, these technologies (e.g., patient portals, mobile payment apps, automated reminders, and more) significantly improve financial performance. Many providers say their patient collections and cash steadily increase after implementing patient engagement technology because these solutions make the payment process easier and more convenient for patients. When integrated with the electronic health record, technology also helps healthcare organizations identify at-risk accounts and engage patients more effectively, thereby reducing delinquencies. For example, predictive analytics helps healthcare organizations proactively identify patients at risk for nonpayment by analyzing patterns in patient behavior, demographics, and financial history. By flagging them early, the system can offer upfront cost estimates and payment plans, leading to fewer defaults and improved patient satisfaction.
Measuring the Impact of Patient Experience in the Healthcare Revenue Cycle
Regularly measuring and analyzing key performance indicators (KPI) helps healthcare organizations identify areas of improvement in both patient engagement and financial outcomes. Following are five important revenue cycle management KPIs to track along with definitions and explanations of why they matter:
| KPI | Definition | Why It Matters for Patient Financial Experience |
| Days in A/R | Average # of days to collect payments | Clear bills + upfront estimates shorten collection time |
| Patient Self-Pay Collection Rate | % of patient responsibility collected within 30 days | Strong indicator of how communication drives payment behavior |
| Bad Debt % of Net Revenue | Portion of revenue written off | Poor experience raises disputes → more bad debt |
| Denial Rate | % of claims denied | Poor documentation & communication with patients can trigger denials |
| Cost to Collect | Administrative cost per dollar collected | Good digital tools (e.g., portals) reduce manual work |
And here’s the same information for five patient satisfaction KPIs.
| KPI | Definition | Why It Matters for Revenue |
| Patient Satisfaction Score (CAHPS, Press Ganey, internal surveys) | % of patients rating care & billing experience highly | High satisfaction links to faster payments & loyalty |
| Billing Clarity Score | Survey or post-bill feedback on ease of understanding statements | Confusing bills = delayed or unpaid balances |
| Patient Portal Adoption Rate | % of patients using portal for scheduling, billing, messaging | Higher adoption lowers admin costs and accelerates payment |
| Call Abandonment Rate | % of patient calls dropped before resolution | High rates show frustration that can delay payments |
| No-Show Rate | % of scheduled appointments missed | Missed visits = lost revenue and poor continuity of care |
Tracking correlations between KPIs for patient financial experience and patient satisfaction helps leaders understand patient engagement and make strategic decisions and investments. It also helps organizations prove that better patient communication, billing transparency, and empathy not only improve patient satisfaction but also reduce A/R, increase collections, and protect long-term revenue.
Improving the patient experience not only benefits patients; it also strengthens the financial health of the organization. Providers who treat the patient financial experience as part of the overall patient experience—by offering clarity, convenience, and compassion—frequently see higher patient satisfaction, faster collections, better patient engagement, and stronger long-term loyalty. Adopting best practices focused on clear communication, empathy, and technology solutions greatly improves financial outcomes and yields a stronger healthcare revenue cycle.