Using the widget, which the hospital launched several months ago, prospective patients name the clinical service they wish to receive, enter their copayment and deductible levels, and receive an estimate of how much they would have to pay.
“The widget gives patients a good idea of how much their out-of-pocket will be, which is information that hospital patients don’t usually have,” says Calvin MacKay, CFO of Methodist. “This makes it more likely that they will fell comfortable with their share of the bill and pay it.”
Methodist launching exact price quotes
Since exact coverage information is still lacking, the price generated by the widget is just an estimate, but Methodist is moving toward exact price quotes for employees at selected companies in the area. On July 1, the hospital launched its first exact out-of-pocket cost estimator for employers at Caterpillar, the largest employer in the area.
To access the widget, some 70,000 employees and retirees in Caterpillar’s PPO enter a secure website and type in their specific plan information and the service the want. “It has been a big hit with Caterpillar employees,” says Mr. MacKay.
The service was installed by PARA Healthcare Financial Services of Anaheim Hills Calif. “It took 60 days to set up and cost us less than $50,000,” Mr. MacKay says. “I was surprised by how little it cost.”
On its website, PARA says client hospitals are able to keep their prices private because it is housed within each employer’s Intranet. “Only employees can access their discounted rates and actual out of pockets – preserving the volume drives discount methodology,” the company said.
“Hospitals will increase the volume of employees [they treat] because of the ability to provide the employee with the actual amount they will owe at time of service, allowing for up front collections which will reduce the bad debt and the cost to collect the money after the procedure has taken place,” PARA added.
Learn more about Methodist Medical Center.
Open Methodist’s online tool.
Learn more about PARA Healthcare Financial Services.
