Do you need a patient financing vendor?
It’s no secret that patient payments now account for a growing portion of health system revenue. For some of our clients, patient liability as a percent of NPR has grown to over 15%. Although this growth is not exactly breaking news, it’s still shocking. The U.S. is in the middle of a full-on healthcare affordability crisis.
Leading Health Systems realize that their old ways of collecting will not improve patient payment rates. Additionally, With patient responsibility rising, many patients simply cannot afford to pay.
For example, studies report that 55% of Americans have received an unaffordable healthcare bill. This change puts health systems in a bind, since many are already operating on scalpel-thin margins.
The Bright Side:
There is a bright side, however. Many patients are willing to pay their bills.
Patientco data reveals that as billed balances rise above $400, the majority of patients make a partial payment. Furthermore, some even come back and make additional payments over time. Trends like these suggest that many patients want their large balances to be broken into smaller, more manageable chunks.
For balances under $1000, a short-term payment plan may do the trick. Fortunately, many health systems can afford to manage these types of payment plans in house, administered by automated technology. However, for balances above $1000, many leading Health Systems choose to offer patient financing through a 3rd-party vendor.
Unfortunately, selecting a patient financing vendor is no simple task. It involves careful consideration and compromise. Recourse or non-recourse? Who should we approve? What administrative effort is required? How should we educate patients? Is enrollment easy enough?
These considerations can leave Health Systems with ‘analysis paralysis’ at worst and a less-than-optimal solution at best. To solve for this unique challenge, Patientco developed SmartFinance. This technology brings together diverse financing products, Patientco’s multi-channel consumer communication, and also self-service payment tools.
Read our new white paper and learn more about how Health Systems can offer tailored financial solutions to accelerate cash, increase net collections, and improve patient satisfaction.