The Status of Patient Billing
Who wants to be #1 for all the wrong reasons? No one! But that is exactly where healthcare finds itself when it comes to delinquent patient billing accounts. As a result, revenue cycle leaders rely heavily on collection agencies. This reliance on collection agencies is why the U.S. healthcare system is the: #1 source of collection calls, #1 reason for negative credit histories, and #1 cause of personal bankruptcies.
It’s safe to say that no one thinks this is a good outcome. Patients aren’t paying all that much more when health systems rely on collection agencies. Furthermore, it is costly for health systems in contingency fees and negative patient experiences (which endanger as much as $650,000 per patient in customer lifetime value).
Today, patient payments are more critical than ever. The majority of health systems we talk with operate on very tight margins. So how is a revenue cycle leader to improve patient billing and shift healthcare from being ranked #1 for all the wrong reasons?
In our latest white paper: Healthcare Is #1 For All The Wrong Reasons – 3 Strategies to Reduce Reliance on Collection Agencies and Improve Patient Experience – we examine three solutions to key focus areas surrounding patient billing that RCM leaders should closely examine: Lack of affordability, limited flexibility, and poor consumer experience.
Lack of Affordability
In a recent McKinsey & Company survey, 72% of respondents expressed concern about medical expenses. With the average health insurance deductible topping $2,000 per year, and 44% of Americans reporting they do not have $400 to cover an unexpected expense, it’s easy to see why.
What if healthcare leaders viewed affordability through a different lens? Read our white paper to find out!
Unfortunately, healthcare is notorious for limited flexibility. There are a number of reasons on the financial side of patient care. There are confusing bills that require a call between business hours to (maybe) get clarity. Additionally, patient’s face a lack of payment options. For example, some patients must find their checkbook and a stamp in order to mail a check. Others must drive to their healthcare facility to pay at the point of service. Some patients must log on and fill out way too many forms on an antiquated bill pay site with poor user experience, especially on mobile. Lastly, if a patient needs payment plans or financing, not all systems offer these payment options.
Luckily, These are all things that technology is primed to solve for. Click here to read more.
Poor Consumer Experience
Consumerism is one of the most important shifts in the healthcare landscape. Patients are bringing expectations from other industries such as retail, banking, and even gig-economy apps like Uber. It’s a high bar, and healthcare has a long way to go.
However, consumers are bullish on technology improving healthcare. A PWC study indicates more the 50% of consumers believe technology can simplify healthcare, reduce costs, and improve satisfaction. Health Systems don’t have to build the technology, they just need to leverage it deliver a better experience.
The good news is that revenue cycle leaders can reverse this trend. To learn how, read our latest white paper: Healthcare Is #1 For All The Wrong Reasons – 3 Strategies to Reduce Reliance on Collection Agencies and Improve Patient Experience