Patient Financial Responsibility: Managing Accounts Receivable in Healthcare.

Should Healthcare Providers Request Upfront Payment?


The healthcare landscape in Nigeria, like in many other countries, is marked by a growing concern—patient financial responsibility. As patients shoulder a greater share of their healthcare costs, medical facilities are grappling with the complexities of managing accounts receivable. In this article, we will delve into the nuances of patient financial responsibility and offer strategies for healthcare providers in Nigeria to effectively manage their accounts receivable.

The Shift in Healthcare Costs:

In recent years, there has been a noticeable shift in healthcare costs. Patients are increasingly responsible for a larger portion of their medical expenses due to factors such as:

  1. Rising Insurance Deductibles: Many health insurance plans in Nigeria require patients to pay higher deductibles before insurance coverage kicks in.
  2. Co-Payments and Co-Insurance: Patients often share a percentage of the cost of services or prescriptions, referred to as co-payments or co-insurance.
  3. Uninsured or Underinsured Patients: A significant portion of the population in Nigeria may not have health insurance, making them solely responsible for their medical bills.

Challenges in Managing Patient Financial Responsibility:

The growing prominence of patient financial responsibility has brought forth several challenges for healthcare providers:

  1. Revenue Cycle Complexity: Balancing patient payments with insurance reimbursements and government programs can create a complex revenue cycle.
  2. Increased Administrative Burden: Healthcare providers must invest more time and resources in billing and collections efforts.
  3. Financial Strain on Patients: High out-of-pocket costs can lead to delayed or skipped medical care, impacting patient outcomes.

Strategies for Effective Accounts Receivable Management:

To navigate the intricacies of patient financial responsibility, healthcare providers can employ the following strategies:

  1. Clear Communication: Educate patients about their financial responsibilities, insurance coverage, and available payment options before treatment.
  2. Transparent Billing: Provide clear and easy-to-understand bills, making it simpler for patients to comprehend their charges.
  3. Insurance Verification: Verify patients’ insurance coverage and eligibility before services are rendered to prevent disputes.
  4. Timely and Accurate Claims: Ensure that insurance claims are submitted promptly and accurately to expedite reimbursement.
  5. Financial Counseling: Offer financial counseling services to help patients understand their options and create manageable payment plans.
  6. Payment Portals: Implement online payment portals for patients to conveniently make payments and check their account balances.
  7. Training Staff: Train staff to address patient financial responsibility and offer support in resolving billing questions.
  8. Collections Policies: Establish clear policies for pursuing collections, including when to send accounts to collections agencies.
  9. Regular Reporting and Analysis: Continuously monitor accounts receivable, aging reports, and collections rates to identify trends and areas for improvement.

Technology and Automation: Leveraging technology and automation can streamline accounts receivable management. Electronic health record (EHR) systems with integrated billing and payment functionalities can enhance efficiency and accuracy.

Compliance and Regulations: Stay up-to-date with Nigerian healthcare regulations and compliance standards. This includes adhering to data privacy laws and ensuring the security of patient financial information.


Patient financial responsibility is a central issue in Nigeria’s healthcare landscape. Effectively managing accounts receivable in this context requires clear communication, transparency, and a strategic approach to billing and collections. By implementing the strategies outlined in this article and staying informed about evolving healthcare regulations, healthcare providers can navigate patient financial responsibility challenges while maintaining financial stability and providing quality care to their patients.

For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, You can also reach us via WhatsApp at +2348038460036.