Card on file for revenue cycle success

Revenue cycle management best practices: How card on file payment software drives success

Healthcare practice leaders face the real and ongoing revenue cycle management challenges of delayed payments and billing complexities every day. These hurdles impact cash flow, and they affect the trust and comfort patients feel with their care experience.

Card on file offers a simple, patient-friendly way to ease these challenges by making payment collection smoother and more convenient. With about 72% of athenaOne® customers already embracing card on file agreements, many have seen faster payments and steadier revenue, helping their teams focus more on patient care.¹

When implemented thoughtfully, card on file becomes a powerful payment tool and a pathway to stronger financial health and deeper patient trust. If your practice hasn’t implemented card on file yet, read on to see how this best practice can help you collect more patient pay, more promptly.

Bridging the gap with card on file and digital payment tools

Simply put, card on file agreements allow practices to securely store a patient’s payment information, such as a credit card, and automatically bill that card once services have been rendered. People today expect convenient transactions, especially when it comes to paying for everyday services. According to digital economy news platform PYMNTS.com, about 80% of all consumers routinely use card on file options when shopping, dining, and managing other daily expenses.² Yet, in healthcare, payment processes often trail behind those seamless experiences, leaving a gap between what patients expect and what practices offer.

For medical practices, bridging this consumer experience disparity presents a significant opportunity to improve patient pay yield. By meeting patients where they are with familiar and convenient payment methods like card on file, healthcare practices can build stronger trust and foster lasting loyalty. Patients appreciate the ease and security of having their payment information safely stored, making their visits smoother and less stressful.

Plus, with the rise of digital and contactless payments, the demand for modern, flexible payment options will only grow. Practices that embrace these trends can meet patient expectations and position themselves as forward-thinking and responsive.

1. Proven financial benefits of adopting card on file payment software and small group practices. athenaOne customers with card on file maintain a much lower and more stable self-pay DAR, typically around 70 days, while those without experience highly volatile and often higher days in A/R, with an average of 123 days.³ This means card on file helps practices close out outstanding balances faster, freeing up resources and reducing administrative burdens by improving collections performance by months or years.

Finally, card on file enhances time of service (TOS) collection rates, capturing more payments right at Card on file may be the key to help healthcare practices strengthen revenue stability and streamline operations. By driving improvements across three key financial metrics, it empowers practice leaders to capture more payments, reduce outstanding balances, and accelerate collections.

Here are three ways card on file can deliver a more predictable and healthier financial outlook:

2. First, card on file can boost patient yield rates, meaning practices see more of their earned revenue successfully collected across all service tiers. athenaOne customers with card on file typically achieve approximately a 74% patient yield, compared to about 63-64% for those without — a gap of roughly 9 percentage points.⁴ This increase demonstrates potential to reduce the risk of lost payments and build greater financial confidence.

3. Next, it can help cut down self-pay days in accounts receivable (A/R), especially benefiting enterprise.

4. The point of care. athenaOne customers using card on file see TOS collection rates around 56%, compared to around 38% for those without — an improvement of more than 20 percentage points.⁵ This boost accelerates cash flow and eases the pressure on follow-up collections, particularly important for higher-volume practices.

Together, these improvements showcase how card on file can act as a trusted partner in transforming revenue cycle management (RCM), driving faster, more reliable payments and healthier cash flow.

The path forward: Embracing revenue cycle management best practices with card on file

Card on file creates a win-win for everyone. Patients enjoy the convenience and security of familiar, streamlined payment options, while practices benefit from improved cash flow and smoother operational performance.

Our customer findings suggest a revenue opportunity for healthcare practices across the U.S. With only 72% of athenaOne customers fully embracing card on file policies, the remaining 28% represent untapped potential to boost revenue while enhancing the patient experience. Healthcare leaders can move forward by taking a fresh look at card on file programs, including revisiting payment policies. A clear payment policy should build patient trust by outlining the practice’s credit card procedures, specifying when cards will be charged (such as 30 days after billing), under what circumstances (for example, missed appointments or services rendered), and how patients will be notified.

Card on file is becoming a vital part of a modern, patient-centric revenue cycle strategy that empowers practices. Embracing this tool can improve collections, build trust, enhance satisfaction, and strengthen the overall health of your practice.

Elevate your practice with card on file

Embracing card on file can be a strategic step toward creating a more efficient, patient-centered revenue cycle that benefits practices and patients alike. Acting now can unlock significant financial and operational benefits and position your practice for sustainable success as the healthcare environment continues to evolve.

Learn how athenaOne’s AI-native Medical Billing and Practice Management software and services can help your practice move forward with card on file and other RCM best practices.