How to collect medical bills. Running a profitable practice, however, can be difficult and complicated due to the complexity of medical billing and collection. Collections is a vital component of medical billing. With the healthcare industry constantly changing and the complexity of insurance policies, it can be difficult to navigate the process of billing and collection. This manual will lead you through the procedure and give you pointers for optimizing your billing and collection activities. The success of your practice depends on the effective management of your billing and collection process.