Your practice’s financial stability depends on timely payments. But managing overdue accounts can get sticky. It requires a bit of nuance and a whole lot of careful wording. 

You don’t want to fracture your relationships with patients. At the same time, you need to clearly communicate the urgency of your message. It’s a balancing act. 

Collection letter templates take the guesswork out of the process. 

In this article, we’ll explain how valuable collection letter templates can be. Then, we’ll share six effective templates. Copy these and customize them to meet your needs. 

Next, we’ll show you how to implement a collection letter template strategy in your practice. We’ll look at some common mistakes and wrap up with our top takeaway tips. 

Stop staring at a blank page and use the templates in this article as a shortcut. They’re friendly, compassionate, and just forceful enough to inspire fast action. 

The Importance of Collection Letter Templates 

Think of your collection letter template as a starting point. They are pre-written documents you can tweak and make your own. 

You can edit them according to your practice’s needs. Then, you can send them to your patients to request outstanding bills. 

These templates deliver a whole host of time-saving benefits: 

• Templates streamline communications. Sending reminders becomes quicker and easier. Communications become more consistent. This means you get paid faster. 
• Templates allow your team to work smarter, not harder. Your team already has stacks of paperwork to complete. These tools take one less thing off their to-do lists. This can help prevent burnout and minimize the risk of typos and other human errors. 
• Templates make sure you adhere to debt collection laws, including the Fair Debt Collection Practices Act (FDCPA). 
• Templates help your practice maintain an on-brand voice and tone. This helps you uphold your professional image. It also builds patient trust. 
• Templates strengthen relationships. They are respectful and courteous. They prevent frustrated staff from airing their grievances in writing, which can damage your reputation. 

FROM ONE OF OUR PARTNERS: Four Ways Online Patient Payments Can Transform Your Practice 

6 Collection Letter Templates for Effective Medical Billing Collections 

We’ve put together six collection letter templates just for you. 

Each one is written with a specific purpose or situation in mind. Feel free to bookmark this page. Or copy and paste your favorite templates into a document for use later. 

Keep in mind that you can customize each template to better reflect your practice, specialty, and brand image. 

1. First Reminder Collection Letter Template 

Best suited to: Family medicine, general practice, pediatric clinics, specialty practices 
 

Dear [patient name], 

We hope you’ve been well. 

This is a friendly reminder that your account with [practice name] has an outstanding balance of [balance]. This was due on [date]. 

If you have already paid, disregard this message. If you haven’t, please do so at your earliest convenience. 

If you are experiencing financial difficulties or have questions, don’t hesitate to reach out. Contact our billing department at [phone number] or [email address]. 

We are here to support you. 

Best regards, 

[Your name] 
[Practice name] 

2. Second Reminder Collection Letter Template 

Best suited to: Family medicine, general practice, pediatric clinics, specialty practices 
 

Dear [patient name], 

Our records show that your account with [practice name] has an unpaid balance. [Balance] was due on [date]. 

Life happens. We understand. However, it’s important you settle this balance before [date] to avoid further action. 

If you are unable to pay for any reason, please contact us.  

Thank you for your attention. 

Kind regards, 

[Your name] 
[Practice name] 

3. Final Notice Collection Letter Template 

Best suited to: Family medicine, general practice, pediatric clinics, specialty practices 
 

Dear [patient name], 

This is a final payment notice. Your balance with [practice name] is still overdue. 

Please pay within [number] days. If we do not receive payment or hear from you, we may have to refer your account to a collection agency. 

Contact us now to discuss your options with our billing team. 

We look forward to resolving this matter. 

Sincerely, 

[Your name] 
[Practice name] 

4. Collection Letter Template for Telehealth Services 

Best suited to: Telemedicine providers 
 

Dear [patient name], 

We thank you for trusting [practice name]. 

We would like to remind you that you have an outstanding balance of [balance], which was due on [date]. 

Please make this payment as soon as possible. You can pay online via our secure portal at [payment link]. Alternatively, contact our billing partner at [phone number]. 

Remember, we’re always here to help. If you have questions about your bill or would like to learn about our payment plan options, reach out. 

Thank you. 

[Your name] 
[Practice name] 

5. Collection Letter Template for Long-Term Care Facilities 

Best suited to: Nursing homes, rehabilitation centers, assisted living facilities 
 

Dear [patient name or carer’s name], 

We hope you are well. 

This is a friendly reminder that you have an unpaid balance of [balance] with [practice name]. Payment was due on [date]. 

Please resolve this balance as soon as possible. Prompt payment will ensure our continued services. 

We know that managing healthcare expenses isn’t always easy. We are here to work with you. Please reach out to discuss our payment options if needed. 

Best, 

[Your name] 
[Practice name] 

6. Collection Letter Template for Text Messaging 

Best suited to: Patients that prefer mobile communications 

Hi [patient name], this is a friendly reminder that you have an overdue balance with [practice name]. 

Pay now securely at: [payment link] 

Or contact our billing team by replying to this message or calling [phone number]. 

Thank you. 

FROM ONE OF OUR PARTNERS: Patient Appointment Reminder Text Message Samples & Tips 

Implementing a Collection Letter Template Strategy 

You want to get the most out of your collection letter templates. To do so, you need a strategy. You need a roadmap to follow that’ll streamline payment collection. All without straining those all-important patient relationships. 

Follow these six steps and achieve just that: 

• Step 1: Look over your patients’ account data. Are any trends standing out to you? Is there a service that often leads to overdue bills? Use this insight to guide your next steps. 
• Step 2: Customize your favorite template from above. You’ll want to make a few changes. For example, edit the tone to match your brand identity. Then, fill in the blanks by adding the patient’s name, balance, and so on. 
• Step 3: Connect your letter templates with the other communication systems you use. That way, you can send reminders to your patients according to their personal preferences. They’re more likely to be noticed, read, and actioned. 
• Step 4: Keep track of how effective your letters are. You can do this in a few ways. First, monitor how many payments are made after the letter is sent. If you use email, look at the open rate. Use this information to determine which templates work best. 
• Step 5: Make sure your team knows how to use the templates, too. Cover key steps in your training, like entering the patient’s information and double-checking it before sending. 
• Step 6: Continuously improve your approach. Update your language and tone over time to create a truly effective, personalized template that works. 

Common Mistakes to Avoid in Collection Letter Templates 

Templates can transform your payment collection workflow. But before you adopt them in your practice, equip yourself to avoid these common mistakes. 

Mistake 1: Using Generic Templates 

Your patients want personalization. They don’t want a generic, cold letter from your practice that reads like it was written by artificial intelligence (AI). 

These types of one-size-fits-all templates may be a lot less effective. 

The solution? 

• Take a few minutes to customize your template. You might even add a sentence about the patient’s recent service. 
• Make sure to add in the patient’s name. Do not start the letter with “Dear Valued Patient”—this will not, in any way, make them feel valued. 

Mistake 2: Ignoring Communication Preferences 

Don’t send all your collection letters the same way. 

This ignores your patient’s communication preferences. It also puts your reminders at a higher risk of not being read. 

The solution? 

• Keep your records updated with patient communication preferences. Follow these when sending collection letters. 
• Use a template that corresponds with the communication channel. Don’t send an email template via text, for example. It’s far too long. 

Mistake 3: Not Tracking Your Results 

The most effective collection letter template for your practice is out there. It’s up to you to find it. 

So, don’t neglect metrics like response rates and time-to-payment. 

The solution? 

• Set up a tracking system that automates the process. If you have software that can create reports, even better. 
• Regularly look at the data. Deduce key insights. Then, make an action plan to leverage what you have learned to improve your letters. 

RELATED ARTICLE: 10 Best Practices for Maximizing Point of Service Collections 

Key Takeaways on Harnessing the Power of Collection Letter Templates 

Ready to get started right now? Use these key takeaways: 

• Choose a template that fits your practice. Grab one or two. Copy and paste them to a blank document and save them. 
• Customize the templates. Adjust the language so it better suits your practice and specialty. If you always sign off in a certain way, for example, add that to your collection letter templates. 
• Make a plan. Write down the steps you’ll take to send out collection letters. Which team member will be involved? Which communication channels will you use? 
• Decide how you’ll track results. If possible, automate this. Keep an eye on performance metrics to make ongoing improvements to your approach.