Collections are the money a clinic actually receives from patients, insurers and corporate panels in a period, as opposed to the value of treatment billed or planned.
What it means
Collections are the cash that actually lands in your account. Not the value of plans you quoted, not the bills you raised, but what patients, insurers and panels have paid. It is the most honest measure of revenue in a practice.
The gap between billed and collected can be surprisingly large. Part payments that are never chased, insurance claims stuck for months and corporate panel dues all sit between "we did the work" and "we got paid". A clinic can look busy and still be short of cash.
How to calculate it
Collection rate = amount collected ÷ amount billed in the same period × 100
Also track outstanding dues by age, such as under 30 days, 30 to 60 days and over 60 days, so old dues do not quietly pile up.
For example, a clinic bills ₹25,00,000 in a month and collects ₹22,50,000 of it. Collection rate = ₹22,50,000 ÷ ₹25,00,000 × 100 = 90%. The other ₹2,50,000 needs a clear follow-up plan.
What good looks like
HBA's profit benchmark is measured on collections, and the books for each month should be closed by the seventh of the following month. For collection rate itself there is no set benchmark: higher is better, and HBA tracks collections every week as part of Monday numbers.
How to improve it
- Agree the payment schedule for every treatment plan in writing before treatment starts.
- Offer EMI and card options so patients pay on time without strain.
- Send polite WhatsApp reminders before each instalment is due, not after it is missed.
- Give one person ownership of insurance and panel claims, with a weekly list of pending cases.
- Review outstanding dues every Monday and act on anything older than 30 days.
Related terms
Frequently asked questions
What is the difference between revenue and collections in a clinic?
Revenue is often counted when treatment is billed. Collections count only money actually received. The gap between them includes unpaid instalments, pending insurance claims and panel dues. Collections are the safer number for running the practice, because salaries and rent are paid with cash, not invoices.
How can I reduce pending payments in my clinic?
Agree payment schedules before treatment starts, offer EMI and card options, and send friendly WhatsApp reminders before each due date. Give one person clear ownership of insurance and panel claims. Review the list of dues every week, and act early on anything that passes 30 days.
On a free growth call, my team traces your last month from enquiry to treatment and shows you your biggest leak in rupees.