Healthcare’s Shift to Patient Self Pay

Posted on October 23, 2014 I Written By

John Lynn is the Founder of the 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 and 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.