What is a payment plan in medical billing?

In medical billing, a payment plan refers to a service that enables patients to pay their medical bills over a specified period rather than in a single lump sum. This arrangement is particularly beneficial for patients who may face financial difficulties or lack insurance coverage to completely cover their medical expenses. By allowing payments to be divided into manageable installments, healthcare providers make it easier for patients to access necessary care without the burden of a large upfront cost.

This option is essential in promoting financial accessibility within healthcare. It encourages timely payment of medical bills, reduces the likelihood of accounts going to collections, and helps maintain patient-provider relationships. Offering structured payment plans can also improve patient satisfaction and overall revenue collection for healthcare facilities.