Collect more of your hard earned revenue with medical eBill reminders
Medical eBill reminders are a low-cost way to communicate with many patients. Although the timing fluctuates by provider, these notifications are usually sent a week before a bill is due.
That said, data shows these reminders are less likely to be opened than a first bill. They are also half as likely to be clicked on. These findings beg the question: What’s the true value of sending an eBill reminder to patients?
Patientco’s Data Team crunched some numbers to answer this very question. They studied over 332,000 bills and found that eBill reminders really increase patient payment rates!
Let’s look at the impact of eBill reminders on bills with pending balances. When no reminder was sent, 21.4 percent of patients paid their medical bill within a week of the due date. However, when patients were sent a reminder, 27.7 percent paid within a week of the due date. That’s a 29.4 percent increase in patient payments over the baseline, and 6.3 percent more patients made payments.*
This goes to show that many patients just need a nudge to make their payment.
Impact for Health Systems
With patient financial responsibility on the rise, that 6.3 percent can really matter to a health system’s bottom line.
- Patients spend on average $10,348 a year on health according to CMS
- According to a TransUnion study, 37 percent of patient hospital bills were for more than $500, and 14 percent of patient hospital bills were for $3000 or more
In other words, these patient payments can really add up. Additionally, Patientco data has revealed that patient payments account for up to 15 percent of a health system’s revenue, indicating that patient payments are more important than ever before.
There is another benefit to sending medical eBill reminders: Patient loyalty
These days, patients place a high priority on trust and convenience, even when it comes to paying bills. As medical eBill reminders are the result of opt-in actions taken by patients, they are not perceived as unwanted spam. Rather, they are a convenient and fast way for a patient to be notified that an upcoming bill is due.
Additionally, these alerts can be set up to meet patients where they are through automated text or app notifications.
These reminders keep patients from missing a bill or being sent to collections, and they ultimately deliver a better customer service experience to patients. When patients have a positive experience with a healthcare provider, they are more likely to return to the health system and, in turn, create sustainable value for your organization. In fact, we’ve calculated the customer lifetime value of a single patient as being worth $650,000.
eBill reminders are an obvious win. They are relatively inexpensive, provide high return value for health systems by increasing patient payment rates, and provide a better patient payment experience for healthcare consumers.
So, how else can you maximize patient payment rates?
* 95% confidence interval, 6.3% +/- .8% or (5.5% – 7.1%)