Since 2010, 80 hospitals in the U.S. have closed; 21 of those closings occurred last year.
And, more are at risk if the proposed reduction in Medicaid is passed through the U.S. Senate. In fact, according to an article in USA Today Network, 32 hospitals in Tennessee alone are at risk of closing if the U.S. Senate follows through with the $839 billion reduction in Medicaid funding. Also as many as 23 million Americans stand to lose health insurance under the current proposed plan which passed the House last month. This is putting additional stress on the healthcare system with insured patients premiums rising (as high as $15,000/year for some), and patient responsible revenue up 1400% since 2005 to 30% of total hospital revenues.
As a result, hospitals face declining revenues and many struggle to provide top quality patient care, while managing high budget deficits or even worse, closure. And, hospital closures impact entire communities, with job losses and resource limitations at every level.
Tom Brekka, founder & CEO of VestaCare, Inc. is sounding the alarm to healthcare and hospital executives about how to prepare their institutions for the future. Brekka argues that hospitals are waiting too long to address patient revenue loss, making some future closings imminent.
The Solution
Brekka has developed a system for hospitals to prevent ongoing and escalating patient revenue losses, in contrast to current industry efforts to “chase” patients. The solution protects patients against the ravages of bad debt and thereby greatly improving patient satisfaction; and allows them to automate and thereby greatly reducing the administrative overhead for the complete patient financial lifecycle.
The benefits of this system are already surfacing. In the first month, hospitals using VestaCare experienced a 10% - 15% increase in secured patient revenue, in the next six months, a 20-25% improvement, in the first year 35%-40%. By developing individual patient payment programs implemented on or before treatment, secured patient revenue is projected to reach $2.0 million, for a hospital historically losing $6 million in patient bad debt.
Success Story
According to David Hoff, CEO, Wayne Memorial Hospital, a non-profit, community-controlled hospital based in Honesdale, Pennsylvania with 98 acute-care and 14 rehab beds, “Health insurance plans have changed dramatically over the last 5-7 years, putting greater responsibility on the patient to pay out of pocket for their care; but hospitals have not changed the way they get payment — our systems have not changed. And that has increased our patient debt significantly.”
Said Mike Clifford, CFO, Wayne Memorial Hospital, “We needed to do something, but we didn’t want to drive patients away. We wanted to implement a new process and be more strict up front, and VestaCare stood out to us as a good partner.”
After launching VestaPay in June 2016, Wayne Memorial Hospital in Honesdale, PA, secured $50,000 in patient payments in just one month. Each subsequent month, the hospital increased the amount secured. Just last month, May 2017, $310,000 was secured for the hospital. As of May 31, more than $2 million in total patient revenue (including $1 million in new dollars) was secured, a 37% improvement.
Clifford adds, “If I can reduce my patient debt by 30% I am in the black, and we are profitable. And, what this also means to me is that I can purchase a new CT scan or MRI or recruit more specialist physicians into our facility or expand our emergency room. Preventing bad debt will increase our ability to give the highest quality of patient care possible.”
About VestaCare
VestaCare is devoted to helping hospitals and other medical care providers secure a higher percentage of their patient-responsible revenues, while ensuring patients are treated with compassion and respect. Headquartered in La Jolla, CA, VestaCare secures hospitals’ financial survival by preventing patient revenue loss, rather than chasing after payment once care is provided. Proprietary technologies behind an integrated payment system are paired with comprehensive staff training and onsite support. By providing the most compassionate solutions, VestaCare enables patients to pay for their own medical care, with 90% of enrolled patients completing their total payments. VestaCare’s approach, in working with hospital staff, increases patient satisfaction and loyalty, allowing them to focus on getting well instead of worrying about their medical bills.
For more information contact: Carol Gifford, 312-307-8318
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