Which statement best reflects why a practice might offer a prepayment plan for major procedures?

• A. To increase patient satisfaction
• B. To secure upfront cash flow
• C. To delay service
• D. To complicate billing

Answer: (B)

Securing upfront cash flow is the main reason for offering a prepayment plan for major procedures. By collecting payment before the procedure, the practice increases liquidity, reduces the risk of unpaid charges, and shortens the time needed to turn patient encounters into cash. This supports more predictable revenue and lowers the burden of chasing payments after services are provided. It also helps with planning and scheduling, since the practice knows in advance what funds are available. While patient transparency and satisfaction can be improved when costs are clearly communicated, those benefits aren’t the primary driver. Delaying service or making billing more complicated would contradict the goal of smooth revenue cycle management.