Discover how hybrid billing strategies that combine paper and electronic billing can improve your practice's patient satisfaction and ROI.
Practices of all sizes are caught between the digital expectations of modern patients and the realities of their diverse patient base. On one side, younger patients expect to manage everything digitally. They want to pay their medical bills the same way they pay for Netflix or order food through DoorDash. On the other side, a significant portion of today's patient base isn't entirely interested in going fully digital. 39% of providers think billing has no impact on patient satisfaction, but 74% of millennial consumers stated they would switch providers for a better healthcare payment experience. However, despite all the talk about electronic billing and going digital, 32% of patients still prefer their healthcare bills by mail, and 27% prefer to pay by check.
So, what are practices supposed to do? It's not about choosing sides; it's playing both. A hybrid billing strategy that combines electronic billing with mailed statements offers the best of both worlds, resulting in higher ROI. When done right, this approach makes more patients happy and significantly improves your bottom line.
Why the “Either/Or” Approach Isn't Working Anymore
As payment portals and electronic billing became more common, many practices find themselves facing a choice: adopt the new digital tools or stick with the paper billing that has worked for so long. Some leap headfirst into electronic-only billing, hoping to reduce costs and accelerate collections. Others remain skeptical, keeping their paper processes untouched. But patients didn't sign up to choose sides in this debate.
Why is using only electronic or only paper billing no longer effective? A one-size-fits-all approach to billing no longer aligns with the different preferences and technological comfort levels of modern patients. The reality of patient engagement is more complex than a particular approach can address. Healthcare spending reached $4.9 trillion in 2023 and is projected to have grown 8.2 percent in 2024. When people pay more for healthcare, they become more selective about how the process works.
Patients want the same convenience they get everywhere else, but they also want options. Global contactless payment transactions are projected to exceed $10 trillion by 2027. Sounds like everyone's going digital, right? Not exactly. If you look deeper, you'll find that traditional preferences haven't disappeared; they've simply become part of a broader mix.
All-Digital Drawbacks
Switching completely to electronic billing may sound great in theory. No printing costs, instant delivery, and real-time tracking. So, what's not to love? Well, it's not that simple. 70% of patients still receive their medical bills by mail, indicating that many practices haven't fully transitioned to digital-first approaches. Emails can quickly get buried in spam folders or lost in crowded inboxes. A 75-year-old patient might struggle with using mobile devices and confusing payment portals. Rural patients with spotty internet connections may also find making online payments frustrating. When patients can't access their bills electronically, collection rates suffer.
All-Paper Drawbacks
Traditional paper-only billing faces challenges just as significant as those with electronic billing. Delivery delays, particularly when USPS experiences disruptions, can extend payment cycles by weeks. Rising postage costs, printing expenses, and labor for statement preparation create overhead that directly impacts a practice's profitability. When patients move, which is common in today's mobile society, paper statements often go to incorrect addresses, resulting in completely missed billing opportunities. The inefficiency of paper-only systems is highlighted by the fact that 82% of providers still issue refunds via paper check, demonstrating how some manual processes can slow down the entire revenue cycle.
Changing Patient Preferences
Modern healthcare consumers also expect flexibility in how they receive and manage their medical bills. 75% of consumers want to pay medical bills online, yet over 30% of consumers have no option to do so. Medical bills are often unexpected, confusing, and emotionally charged. Some patients want the convenience of paying instantly on their phone. Others need time to review a paper statement or call with questions before they make a payment. Conversely, some patients might want electronic billing for routine copays but paper statements for major procedures. Their preferences can also change based on the situation, age, comfort level, or even their mood. The gap between preference and availability highlights a significant opportunity for practices that can bridge both worlds.
What Is a Hybrid Billing Strategy?
A hybrid billing strategy combines electronic billing (electronic bills delivered via email and text messages) with traditional paper statements. Instead of forcing all patients into the same communication channel, you're giving them options while ensuring nobody falls through the cracks. This strategy recognizes that effective patient communication requires multiple touchpoints.
Consider this: Kacey, a 25-year-old patient who manages everything on her phone, receives a text notification with a secure link to pay instantly on a payment portal. Dave, a 72-year-old patient who prefers paper, gets a printed statement in the mail. Here's what makes it work so well: that printed statement can include a QR code that even the most hesitant technology user can scan to access the same online payment portal.
Examples of Hybrid Delivery in Action
Here's what modern hybrid billing looks like in practice:
Routine Visit
A patient has a routine visit with a $35 copay. She receives an eBill notice via text and email the same day, clicks the link, and pays within minutes using her stored payment method on a payment portal, such as PayWoot.com.
Complex Procedure
A patient has a complicated procedure with multiple charges. She receives an electronic billing notification first, but doesn't take any action. A professionally printed paper statement with detailed explanations and a QR code linking to the payment portal will also be sent out to the patient. If no payment is received, automated PayReminders are sent via text or email. These different communication channels ensure the bill stays on her mind without being overwhelming. Through this multi-channel approach, the patient eventually completes her payment using a channel that is most convenient for her.
Traditional Preference
An older patient requests paper statements. He receives his bill by mail and notices the QR code. Showing some interest, he asks his grandson to scan it, discovers how simple online payments are, and becomes more comfortable using them. He then transitions to preferring electronic notifications for future bills.
This kind of adaptability makes hybrid billing an effective solution. It starts with patient preferences but allows for natural evolution as people's needs change.
What Are the Benefits of Combining Paper and Electronic Billing?
Hybrid billing offers measurable advantages that directly improve your financial performance:
1. Increased Collection Rates
Reaching patients through their preferred channels leads to faster payments. Over half of patients say they would pay bills more quickly if delivered via their chosen method. Practices that use both paper and electronic billing report higher collection rates and reduced days in accounts receivable.
2. Improved Patient Satisfaction
Patients feel more in control when they have the option to choose how to receive and pay their bills. Billing satisfaction is closely tied to how communication is handled, with 42% of patients citing the choice of communication channel as the most important factor. Providing flexibility reduces frustration and improves their overall experience.
3. Cost Efficiency
- Targeted Paper Billing: Send paper statements only to patients who need or request them, reducing unnecessary printing and postage costs
- Outsourcing Efficiency: You don't have to spend staff time printing, stuffing, and mailing bills when integrated platforms like BillFlash handle this automatically
- Lower Material Costs: Fewer unnecessary paper bills mean lower print, paper, and postage costs overall
4. Better Tracking & Insights
- Digital Analytics: Platforms like BillFlash provide detailed reports showing which patients received bills through which channels, enabling data-driven improvements to your paper and electronic billing strategy
- Delivery Confirmation: You get confirmation for mailed statements, too, giving you complete visibility into your billing process
5. Faster Cash Flow
Multi-channel reach speeds up payment cycles. Practices that automate billing processes can save up to $166 billion per year, thanks to reduced manual entry and faster collections. Hybrid billing ensures no patient is overlooked, which keeps your revenue cycle moving.
6. Better ROI
These benefits add up to a stronger return on investment. Key metrics that improve with combining paper and electronic billing include:
- Patient payments are received more quickly, resulting in a noticeable reduction in days in accounts receivable (A/R).
- Overall collection rates increase, as more patients complete payments without the need for additional follow-up.
- Administrative costs go down, thanks to fewer manual tasks and reduced time spent on billing-related phone calls.
- Patient satisfaction improves since individuals can receive and pay their bills through the method they prefer—whether by mail, text, or email.
- The number of missed or delayed payments decreases, as multiple delivery channels combine to keep billing top-of-mind for patients.
So, how does hybrid billing improve ROI for medical practices? By maximizing collections, minimizing costs, and keeping patients satisfied throughout the process.
How to Implement a Hybrid Billing Strategy
Combining paper and electronic billing isn’t something you can just wing; it requires careful planning and a step-by-step approach. Here's how to move from single-method billing to offering multiple options:
Start With Patient Segmentation
Start by understanding your patient population. Review their communication preferences, payment habits, age demographics, and comfort with technology. As mentioned, younger patients often prefer digital, while older patients might lean toward printed bills. Use actual data from your practice to see who responds best to different approaches.
Streamline With Integrated Platforms
You don't have to manage multiple systems. Leverage platforms like BillFlash to streamline digital and paper bill delivery from a single centralized location. This reduces confusion and ensures consistent messaging. These systems can automatically route bills based on patient preferences, saving your staff time and improving accuracy.
Enhance Paper Bills With Digital Features
Even patients who prefer paper can benefit from electronic billing. Add QR codes to mailed bills that link directly to your online payment portal. Consider including personalized messages or helpful information on paper statements to add value beyond just the billing details.
Customize Messaging for Each Format
Develop communication strategies tailored to each delivery method. Electronic bills can include interactive elements, direct payment links, and real-time account information. Paper statements should feature clear, prominent payment instructions and multiple contact options for patient questions. Pay special attention to email subject lines to avoid triggering spam detection. Clear, professional subject lines, such as ‘Your XYZ Medical Statement is Ready,’ are more effective than generic alternatives.
Empower Patients With Choices
Allow patients to choose their preferred communication methods through your patient portal, intake forms, or direct requests. Check in on these preferences regularly as they change over time. Build in safeguards: if an electronic billing bounces, automatically send a paper statement to ensure the bill reaches the patient.
Monitor and Refine Your Approach
Once you're running, review performance metrics regularly. Track delivery rates, open rates, payment response times, and collection effectiveness by channel. Use this data to make adjustments to your patient segments and adjust your messaging. Many practices achieve measurable improvements in key areas such as days sales outstanding within 60-90 days, with ongoing optimization leading to even better results.
Why BillFlash Makes Hybrid Billing Simple and Effective
Implementing hybrid billing successfully requires a solid technology infrastructure and operational expertise. BillFlash has spent over 20 years developing an all-in-one billing, payment, and collection platform specifically designed to streamline multi-channel billing strategies for healthcare providers.
Seamless Multi-Channel Statement Delivery
Our platform eliminates the headaches of managing separate systems for paper and electronic billing. With a few clicks, providers can upload, review, and approve bills that automatically route to the right delivery channels based on patient preferences. We send eBill notices via text and email on the same day and mail professionally printed bills the next business day after approval. Practices that combine eBill notices with mailed bills typically see average payment time drop from 20 days to just 9 days.
Comprehensive Payment and Collection Tools
Beyond statement delivery, our platform includes advanced tracking capabilities and automated PayReminders that put your billing on autopilot. Our PayReminders system sends up to three customizable messages per month via text and email at 7, 14, and 21-day intervals after the first bill is sent, automatically removing patients from the sequence once payment is made. This proactive approach manages your receivables efficiently before accounts become past due.
Our payment solutions also accept mobile, online, in-office, mail, and phone payments, featuring popular options like Google Pay, Apple Pay, StoredPay, AutoPay, FlexPay, and PlanPay. For practices dealing with past due accounts, our Integrated Collections services eliminate the need for third-party collection agencies while keeping you in complete control of the process.
Extensive EHR/PM Integration
We integrate with over 100 billing applications and major EHR/PM systems, ensuring better data flow without disrupting your existing workflows. This integration capability, combined with unified reporting and single-point support, helps you consolidate multiple vendors into a single solution.
Enhanced Features for Better Results
Our mailed bills include National Change of Address services, ensuring statements reach patients even if they relocate. QR codes on paper statements link directly to the payment portal, creating smooth transitions between physical and digital payment experiences. Our PreBill capability allows you to request payment via email or text before scheduled appointments, improving cash flow and reducing outstanding balances.
Flexible, Usage-Based Pricing
We offer transactional pricing with no contracts. This means you only pay for what you use. This approach makes it cost-effective for practices of all sizes to implement complete paper and electronic billing strategies without long-term commitments or minimum volume requirements.
Proven Results
Over 60,000 providers trust us to optimize their billing and payment processes. Our solutions help practices increase customer payments by up to 60% while reducing staff workload and administrative overhead. The platform improves financial outcomes while improving the patient payment experience across all communication channels.
For practices ready to move past single-channel billing limitations, BillFlash provides the technology, expertise, and support needed to implement effective hybrid billing strategies that deliver measurable improvements.
Let BillFlash Transform Your Billing Strategy
Hybrid billing meets patients where they are, driving higher collection rates, lower costs, and faster payments. Practices that embrace a paper and electronic billing model can future-proof their revenue cycles and maximize ROI. The ‘either digital or paper’ mentality simply does not serve the diverse needs of today’s healthcare consumers. With healthcare spending continuing to climb and patient financial responsibility increasing, effective and flexible billing strategies have become essential, not optional.
The transition to hybrid billing doesn't have to disrupt your operations. With the right platform and strategy, your practice can implement hybrid billing approaches that deliver quick improvements in collections and long-term gains in operational efficiency. Ready to optimize your billing strategy? Schedule a demo with BillFlash to learn more about our billing, payment, and collection software.