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Few Providers Are Covering All Bases In Patient Collection Efforts

Posted on July 27, 2017 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies. Contact her at @ziegerhealth on Twitter or visit her site at Zieger Healthcare.

If the following is any indication, providers have a pretty good idea of what they need to do if they want to collect more from patients. The thing is, many providers aren’t doing it, or least not doing enough. I find this a bit surprising, given that while putting all of them into place may be intimidating, there’s many smaller things they can do to make progress. For whatever reason, though, even the smaller things aren’t happening.

That at least, is the conclusion that leapt out at me when I looked at data from a recent survey on the subject of patient collections. I could be missing something, but it looks as though providers are blowing many opportunities to collect a higher percentage of what patients owe.

The study, which was sponsored by Navicure and conducted by HIMSS Analytics, draws on data from two groups, patients and providers, including 1,000 patients and 553 healthcare industry respondents with revenue cycle management or RCM technology knowledge.

In formulating the survey, researchers sought to compare patient attitudes about provider billing with the providers’ actual behavior.  If the results are any indication, patients are considerably more cutting-edge than providers when it comes to getting the bills paid.

One thing I took away from the survey results was that while patients seem fairly willing to adopt provider-friendly billing options, many providers aren’t accommodating them.

For example, while 52% of patients told researchers that they’d prefer electronic billing over paper statements, and 79% of patients say they are comfortable being billed via email, 89% of providers said they still send out statements via postal mail. I know rethinking billing procedures is hard and all, but making this change seems like it’s worth the effort.

Another striking example of where providers could step up is the use of “credit card on file” programs. Medical practices who seem to be getting a lot of results from CCOF programs, under which patients allow the practice to bill the card for smaller charges.

Despite patient acceptance levels, only a minority of providers said they had gotten on board with CCOF as of yet. In fact, though 78% of patients said they were comfortable with CCOF payments, only 20% of providers said that they such a program in place. That’s another big gap between patient attitudes and provider willingness to follow through.

Then there’s patient concerns about preparing for bills. Admittedly, providers are ahead of patients on this one. Seventy-five percent reported being able to provide a cost estimate, but only 25% of patients said they had requested an estimate on the last visit.

Still, consumers  are catching up with providers quickly, with 56% reporting that they expect to ask for cost of care estimates in the future. Even better, the estimates don’t have to be perfect. In fact, more than two thirds of patients said they would find either any estimate or an estimate that came in within 10% or less of their actual costs to be helpful.

Yes, getting all of these strategies into place together is clearly easier said than done. But given what’s at stake for providers, anything short of impossible is worth a try.

Healthcare’s Shift to Patient Self Pay

Posted on October 23, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

This stat was absolutely remarkable. It came from Intermountain healthcare. Healthcare Scene writers and I have written about this shift multiple times, but it was pretty stark to see the stats on how big the shift really is for an organization.

This same speaker at the Craneware Summit also said that only 40% of self pay is collectible. That’s a huge chunk of money your organization use to collect that is now being sent to collections. Now do you see why this shift in payments really matters?

Barry Haitoff, CEO of Medical Management Corporation of America, offered these words of advice on how to deal with the increase in patient self pay:

There are two main things you need to do to prepare for these high deductible plans. First, make sure you have a solid method in place to know how much the patient owes before or immediately after the visit. There is no better way to reduce patient collections than to collect the payment while the patient is in the office. Many are ready and willing to pay, but some practices don’t have the systems that allow them to know how much to charge the patient before they leave.

Second, look at your processes for collecting patient payments once they’ve left the building. Do you have a good strategy in place to make sure the patient knows how much they owe? Do you have a variety of simple ways for the patient to make the payment? The use of an online payment portal for patients is the most obvious way to make submitting payment to physicians simple for patients. If you solve these two problems you’ll go a long way to improving your patient collections.

These really are two great steps to deal with patient collections and the increase in patient self pay. I’m also watching new payment technologies. I’ll be interested to see what new payment methodologies are rolled out now that the patient pay portion of the bill is so much higher. Now that it matters a lot more to a clinic, I think we’ll see some new tech solutions that work to solve it. Credit card on file is one example.

What are you doing to handle this increase in patient self pay?

Full Disclosure: Medical Management Corporation of America is a sponsor of Healthcare Scene’s EMR and HIPAA blog.