How To Set Up Automated Payments for Your Medical Practice

As the healthcare industry evolves, so do patient expectations. In 2025, efficiency is key to a thriving medical or dental practice. Manual payment processes can be slow, error-prone, and frustrating for both staff and patients. An automated payment system streamlines revenue collection, reduces administrative workload, and enhances the patient experience.

What Is an Automated Payment System in Healthcare?

Running a medical practice and managing billing processes can be challenging, that’s why payment automation systems are designed to simplify your day-to-day operations by automating the way payments are collected and processed. Unlike the traditional, manual method — which often relies on staff to calculate costs, generate bills, and follow up with patients directly — automated payment systems handle much of the process for you, resulting in a streamlined experience that reduces administrative strain and keeps operations running smoothly.

By incorporating payment automated platforms, your practice can enjoy benefits like reducing outstanding balances, speeding up bill collections, and offering patients more convenient ways to pay in the future.

Strategies for Payment Automation

From Text-to-Pay to automatic payment posting, the right strategies can help prevent billing hassles, speed up collections, and ensure a smooth, seamless checkout process. Here’s how to optimize your practice with 5 powerful automation tactics.

1. Collect Payments Instantly With Text-to-Pay

Traditional payment collection methods can be slow and cumbersome, requiring follow-ups and manual processing. Text-to-Pay revolutionizes this by allowing patients to pay directly from their phones with just a tap.

How It Works:

• Patients receive a secure text with their outstanding balance and a payment link.
• They can complete the transaction instantly — no logins or extra steps required.
• Bulk Text-to-Pay allows your practice to send payment requests to thousands of patients simultaneously.

Proven Results:

• A healthcare group reduced accounts receivable from $8 million to under $3 million in just 18 months.
• One practice collected $350,000 in payments within 2 hours of sending bulk text reminders.
• Practices have seen up to a 65% decrease in outstanding balances and a 30% reduction in time spent on collections.¹

How To Implement Text-to-Pay:

• Choose a payment platform that offers both individual and bulk Text-to-Pay features.
• Train your team to use the system efficiently and in compliance with applicable laws.
• Inform patients about the new, convenient payment method through multiple communication channels.

2. Store Credit Cards on File for Faster Checkout

Patients appreciate a quick checkout experience. A card-on-file system that securely stores the payment details as well as allowing for seamless transactions and automated payment processing is key to a faster checkout experience.

Benefits:

• Eliminate the need for manual billing follow-ups with saved payment details.
• Improve efficiency and quickly collect payments during time-of-service.

How To Implement Credit Card Storage:

• Select a PCI-compliant platform that securely stores card information.
• Communicate the benefits to patients, emphasizing security and convenience.
• Use patient-approved stored cards for recurring payments, membership plans, and overdue balances.

3. Offer Recurring Payment Plans

Recurring payment plans break down large expenses into manageable monthly installments, making care more accessible and ensuring a steady cash flow for your practice.

Why It Works:

• Automated collections free staff from timely manual payment tracking.
• Create predictable revenue streams your practice can expect to receive.

How To Start Offering Recurring Payment Plans:

• Choose a platform that supports customizable, automated payment plans.
• Train your team to present these options during treatment discussions.
• Emphasize how monthly payments make essential care more affordable.

4. Enable 24/7 Online Bill Pay

Allowing patients to pay anytime, anywhere accelerates collections and enhances convenience. Online bill pay allows your practice to receive payments outside of standard office hours.

Benefits:

• Reduce delays when processing patient payments.
• Impress patients and meet the expectations of those who prefer online transactions.
• Free up valuable staff time from manual invoicing and collections.

Implementation Strategies for Online Bill Pay:

• Add QR codes to statements to support instant mobile payments.
• Send secure payment links via text and email.
• Provide a dedicated payment portal on your website.

5. Automate Payment Posting for Accuracy and Efficiency

Manually updating patient accounts is time-consuming and prone to errors. Automatic payment posting supports seamless transaction tracking, eliminating unnecessary administrative work.

Advantages:

• Save staff time by minimizing manual payment entry.
• Reduce billing discrepancies and possible confusion.
• Keep patient accounts accurate and up to date in real-time.

How To Implement Automatic Payment Posting:

• Select a payment system that works with or integrates with your existing practice management software (PMS/EMR).
• Make sure the system is capable of reconciling and updating payments in the ledger.
• Maintain a clear audit trail to track transactions effortlessly.

Choosing the Right Payment Automation Platform

For maximum efficiency, your payment system should include all five of these automation tactics in one integrated solution. Here’s what to look for when selecting a provider:

Key Features:

• Text-to-Pay with bulk messaging capabilities
• Secure card storage with PCI compliance
• Recurring payment plans for treatment financing
• 24/7 online payment access via multiple channels
• Automatic payment posting to your practice management system

Questions to Ask Providers:

• Does this system work with my current PMS/EMR?
• Is it PCI-compliant, HIPAA-secure, and compliant with other applicable laws?
• What are the setup fees and transaction costs?
• What training and support do you offer?