In fact, nearly 40 percent of Americans with employer-based health insurance were enrolled in a high-deductible health plan as of 2016, according to the Centers for Disease Control and Prevention. At the same time, more than half of provider bills go unpaid, putting healthcare organizations at significant financial risk.
As patient liability for healthcare continues to grow, effectively managing self-pay collections can help organizations improve financial outcomes as well as patient satisfaction.
According to a recent study by Mad*Pow, more than 60% of patients are confused by their medical bills. Organizations can help patients better understand their treatment costs and payment options in advance, thus simplifying and clarifying payment processes while enabling patients to plan for care costs. The following tactics can foster a patient-centered financial experience and successfully drive patient payments.
1. Review your eligibility processes and add tools that check for hidden coverage. Technologies that search for hidden insurance can successfully find coverage for self-pay patients. They reduce the likelihood of uncompensated care and maximize reimbursement opportunities from insurance payers and patients.
This type of tool uses a business intelligence engine to identify coverage, confirm it’s active and arm provider organizations with the insight they need to collect revenue owed. A quick check using coverage detection software can give staff information such as copays, deductibles, and even inpatient days used. With this knowledge, staff can work with patients to quickly arrange payments due or create an automated payment plan.
2. Provide a range of convenient – and digital – payment options. To maximize collections, healthcare organizations can offer patients the opportunity to pay using methods that are easy and convenient for them. Options should include credit/debit card or check payments at the time of service, a credit card that is kept on file for balances post-adjudication, and/or an automated payment plan that uses a credit card or bank draft and can be managed through a patient portal.
According to Waystar’s 2018 Patient Payment Check-Up survey, conducted by HIMSS Analytics, 20 percent of patients prefer to authorize a one-time charge via a credit card on file (CCOF) solution for their upcoming payment. Having the credit card on file also makes it easier to issue refunds if needed, saving time and improving the patient experience.
Another interesting finding from the 2018 Patient Payment Check-Up Report™: patients don’t always know what payment options are available to them, but certain options increase patient satisfaction. Therefore, it is important to train patient access or front desk staff to communicate these different payment options. In particular, staff should share information on how to access and use a patient portal to pay bill online.
As patients continue to become more consumer-savvy and grow more accustomed to various payment options, it is important for healthcare organizations to put digital convenience at the forefront of their payment strategies.
3. Routinely provide cost estimates. One of the biggest reasons patients don’t pay their bills is because it can be difficult to budget for large medical expenses—a factor that can have an especially big impact on hospitals. Incorporating an estimation tool into staff’s routine workflow can give patients better insight into their financial responsibilities. It is an effective way to bring costs to light prior to services rendered, thus improving price transparency.
According to the same 2018 survey by HIMSS Analytics and Waystar, 86 percent of patients understand what they owe when presented a cost estimate, which goes a long way toward helping them plan and budget for healthcare bills. The survey also found patients who receive a cost estimate are more likely to:
• Pay their bill faster (46%)
• Return for future care (68%)
• Recommend the practice to a friend (69%)
Manage the rise–and reduce the risk–in patient collections
The patient payment landscape may be changing significantly, but that doesn’t mean your healthcare organization needs to face financial risk due to uncollected patient payments. A solid strategy to manage the rise in patient collections, combined with the right tools to verify amounts due and simplify payments, can ease staff’s workload and ensure your organization’s revenue cycle stays on solid footing.
