How does the cost of collecting patient liabilities typically change over time?

The cost of collecting patient liabilities typically increases over time due to several factors that impact the efficiency of the collections process. Initially, when a bill is issued, there may be a higher likelihood of collecting the payment quickly, as patients are generally more attentive to their financial responsibilities shortly after receiving care. However, as time passes and if a payment remains outstanding, the likelihood of collection decreases.

Additionally, as time goes on, collection efforts may require more resources, such as sending multiple reminders, engaging collection agencies, or even pursuing legal avenues. These processes incur additional costs, including staff time, communication expenses, and potential legal fees.

Moreover, the increasing age of the debt may lead to a deterioration in the patient’s ability to pay, especially if the patient faces financial hardships or if the medical services provided were unexpected or significant. As a result, a delayed collection often leads to more aggressive and costly collection strategies, further increasing overall costs. Therefore, over time, the total cost associated with collecting patient liabilities tends to rise, making this option the most accurate in describing the trend observed in healthcare finance.