The dermatology billing landscape is experiencing a fundamental shift. Traditional paper statements — sitting unopened on kitchen counters for weeks — represent an outdated approach that's failing practices and frustrating patients alike.

The financial impact is immediate

Recent text-to-pay implementations across dermatology practices have revealed compelling data: one in four patients pay within 24 hours of receiving a text notification. For practices seeing 70-80 patients daily, this translates to significant cash flow improvement and reduced administrative burden.

Consider the aggregated impact: Even small patient balances of less than $20 can generate more than $2,000 monthly in previously uncaptured revenue. One practice reported collecting $5,808 across 57 patients in less than eight hours on their first day of implementation.

Operational excellence through automation

Text-to-pay systems create robust financial workflows that eliminate human error while providing comprehensive audit trails. When integrated with practice management systems like Nextech, these platforms automatically detect patient balances after insurance adjudication, ensuring accurate payment requests without manual intervention.

And the operational benefits extend beyond faster payments:

• 50% reduction in paper statements (freeing staff for patient care)
• Automated payment application to the oldest outstanding balances
• Multi-channel communication increases legitimacy and response rates
• Customizable messaging that maintains brand voice and addresses patient concerns

Strategic implementation framework

Patient education: Position text-to-pay as a convenience enhancement, not a requirement. Communicate through multiple touchpoints: statements, front desk interactions, and prominent signage.

Communication cadence: Bi-weekly reminders for 60 days, then monthly until 90-day collections threshold. Automatic pause for payment plans and opt-out requests.

Balance thresholds: Consider collecting all balances — aggregated small amounts represent substantial annual revenue, often written off in traditional models.

Technology as a competitive advantage

Modern patients expect digital-first experiences. Text-to-pay positions dermatology practices as premium providers while generating measurable ROI. Monthly costs of $50-$100 per provider are typically offset by statement savings alone, with accelerated collections providing additional value.

Advanced reporting enables practices to track notification delivery, link engagement, and payment completion, providing actionable insights into patient behavior patterns.

The strategic imperative

For dermatology practices managing dual medical and cosmetic billing complexities, automated payment systems provide scalability and reliability essential for sustainable growth. Practices achieving the greatest success view text-to-pay as part of a broader digital transformation strategy.

The question isn't whether digital payment systems will become standard — it's how quickly practices can implement them to capture competitive advantages. Data demonstrates that early adopters are positioning themselves for both immediate financial gains and long-term operational excellence.

Bottom line: Text-to-pay transforms cash flow, reduces administrative burden, and enhances patient convenience, creating win-win scenarios that drive practice success in today's competitive healthcare environment.

This article originally appeared in the summer issue of ADAM's Executive Decisions.