Is your healthcare group prepared for a cash flow crisis in January?

This happens every year. Providers returned from the holidays to find themselves facing a predictable revenue crisis. However, few are taking steps to get ahead of the curve.

For most Americans with private insurance, it's no secret that insurance deductibles reset to $0 every January 1. This means that the financial burden of healthcare falls squarely on the shoulders of patients, and healthcare provider organizations that do not have a reliable strategy for collecting patient liability balances stand to lose significantly.

Deductible season typically runs from January to May, but given that deductibles are set to rise significantly in 2026 for both the ACA marketplace and Medicare Part A patients, the time frame may lag. As a result, provider organizations that do not take steps to address cash flow issues may find themselves in an even greater crisis than in previous years. This is problematic because 63% of providers are already challenged by large patient balances and 43% are challenged by bad debt related to patient collections.

It doesn't have to be this way. It was business as usual in January for medical groups laying the groundwork for patient collection. Here are four ways to help you avoid the inevitable deductible reset.

1. Implement digital billing and digital wallets – Nearly three-quarters of healthcare providers said at least two statements are required to collect patient liability balances. For healthcare organizations that still rely on paper statements, this can mean a long time before patients actually pay their balance.

Additionally, many patients with regular appointments could become overwhelmed by growing medical debt if they receive multiple paper bills over the course of several months. Many patients simply aren't prepared to write a check for $500 to $700 at a time for their health care.

Digital, real-time billing and payment solutions help overcome these challenges. The total is easier to understand when patients receive their bill immediately after making an appointment via text message or email. Additionally, according to industry research, they actually prefer receiving digital statements and are more likely to pay their bills via text message or digital wallet.

2. Communication and collection during service – While digital billing and payment speeds speed up payments, collecting fees at the time of service is even better. To do this, providers must prepare from multiple angles.

First, the technology infrastructure must support the ability to provide cost estimates through real-time insurance verification. With the right automation, accurately capturing patient information and copayments through a digital wallet (which can be used for future payments) can significantly improve bottom-line performance. Second, in addition to paying in full at the time of service, medical groups need to develop flexible payment plans.

Finally, administrators must be trained not only to require upfront payment but also to advise patients on payment options, whether it is a payment plan established on-site before the patient leaves or financial assistance available. Text-based tools for communicating expected copayments before the appointment are often more effective. The best tools guide patients through all available options and allow them to make choices without the discomfort of financial conversations.

3. Change from monthly billing to billing immediately upon access – Many providers still publish consolidated statements on a monthly basis. Not only does this reduce the speed of potentially receiving payments, it can also lead to price shocks. For example, a patient who comes to the lab for tests and has two separate visits in the month before surgery will rack up a sizable bill at the end of the month.

When digital billing and wallet options are available, providers can set up text or email notifications to go out automatically after each visit. This significantly reduces the burden on staff and patients can pay small bills instantly.

4. Stay ahead of the backlog: run daily or weekly reports and automatically reconcile – Fully automated daily or weekly billing cycles help providers avoid extreme administrative burdens on the first of every month. Traditionally, medical group billing teams have operated by closing the month, running reports, mailing bills, and then waiting for a flood of calls and questions to come in. When reports are issued continuously, resources can be better managed and cash flow becomes more predictable.

Furthermore, during self-pay season, knowledge is power. Automated payment reconciliation helps medical groups understand current cash flow by matching electronic payments received by patients with bills. It also eliminates the administrative burden and inaccuracy of manual adjustments, allowing workers to focus on higher-level tasks.

More predictable deductible resets

As the industry accelerates toward January 1, 2026, the good news is that provider organizations can better prepare for the shift in payment responsibilities that comes with the deductible reset. A patient-centric billing medical group built on a modern payment infrastructure can greatly improve the ability to collect patient liability balances in a timely manner, making deductible season more manageable. But adopting new strategies starts now. Suppliers waiting until the new year will find themselves once again unprepared.

Photo: Nuthawut Somsuk, Getty Images

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