What does "time of service" billing mean?

"Time of service" billing refers to the practice of collecting payment at the moment a service is rendered to the patient. This approach is designed to streamline the payment process for healthcare providers and ensure that they receive immediate compensation for the services they provide. By collecting payment at the time of service, healthcare facilities can minimize the risk of unpaid bills and reduce the administrative burden associated with following up on outstanding payments.

This model is particularly beneficial in scenarios where services are straightforward or where insurance coverage is either minimal or unclear. It promotes financial transparency for patients, allowing them to understand their financial responsibility at the point of care, rather than receiving a bill later that may be unexpected or difficult to manage.

In summary, time of service billing enhances cash flow for healthcare practices and provides patients with clarity regarding their financial obligations immediately upon receiving care.