Many American families are burdened by soaring healthcare costs, significantly influencing their insurance coverage and medical care choices. Despite 90% of the U.S. population having some form of health insurance, the complexity of medical needs coupled with high deductible plans and other cost-sharing arrangements often leaves individuals grappling with medical bills they cannot afford.
Recent reports highlight that around 14 million people in the U.S. (6% of adults) owe more than $1,000 in medical debt. An analysis by Kodiak revealed that healthcare providers managed to recover less than half (47.6%) of the amount owed by patients for their care in 2022 and 2023.
Medical debt is a double-edged sword, adversely affecting patients and healthcare providers. When patients skip payments or treatment due to affordability concerns, it increases bad debt and decreases patient volume, ultimately impacting provider revenue.
Let's explore strategies to strike a balance between the practice's financial stability and maintaining positive patient relationships.
Collecting payment from patients can be like walking a tightrope; it's crucial not to stray from the balance between enhancing patient experience and emphasizing patient financial responsibility. Neglecting small amounts in patient collections can add up, resulting in significant revenue loss. Yet, it's crucial to empathize with patients experiencing monetary challenges.
So, how do you find the right balance?
Here are 7 tips to streamline patient collections and safeguard your revenue:
The No Surprises Act, which aims to eliminate sudden medical bills by giving people an estimate of their medical expenses, has received mixed reactions from healthcare professionals. It requires medical practices to provide a good-faith estimate of the cost of the services patients will receive.
Generating a good faith estimate for a service not yet delivered can be challenging. However, here's how you can simplify it:
Recent insights into consumer healthcare payment trends show that 75% of customers prefer digital and electronic payment methods, including receiving e-statements. It's time we capitalize on this trend to optimize patient collections.
Provide diverse and flexible payment options to encourage patients to make prompt payments, as follows:
More and more Americans are delaying payment or skipping medical care due to financial strain. The front desk is your practice's first touchpoint with your patients, making it instrumental in guaranteeing timely collections. The more you delay collecting patient payments after providing care, the less likely you will secure them.
One way to guarantee upfront payments is to use scripts to communicate payment obligations. These scripts ensure every interaction with patients is handled professionally and effectively, reducing misunderstandings and increasing the likelihood of successful payment collection.
Additionally, prioritizing insurance verification before appointments helps confirm coverage, identify any outstanding dues, and remind patients of their payment responsibilities, proactively addressing potential payment issues.
Furthermore, rewarding your front desk staff and employees who excel in collecting payments motivates them to continue performing.
Provide training to ensure your staff efficiently verifies patient coverage, is familiar with various health plans, can interpret insurance responses, and is adept at looking up fees for each medical service. Comprehensive training equips them to confidently and accurately address patient inquiries.
Clear communication is crucial when discussing financial responsibilities with patients. Train your staff to effectively communicate coverage, copays, deductibles, and outstanding balances in simple terms that patients can easily understand. This builds trust and enhances the patient experience.
In addition, staying compliant with current insurance policies and medical billing regulations is imperative to ensure accurate reimbursement. It allows your team to provide accurate information and assistance to patients, enhancing patient satisfaction.
Delays in patient payments often occur due to confusion or uncertainties surrounding payment policies and coverage criteria. Explaining each patient's insurance coverage and clarifying the payment policies can help mitigate these issues, fostering smoother transactions and improved financial management.
Ensure you clearly articulate your payment policies to patients. Also, provide a written document outlining the acceptable methods of payment, deadlines for payment, consequences for late payments or non-payment, and any applicable discounts or financial assistance programs available. This document ensures patients understand their financial responsibilities up front, minimizing surprises and frustrations later.
While establishing clear payment policies is essential, it's equally crucial to maintain flexibility and empathy for patients facing financial hardships. Discussing the various payment plans or financial assistance programs can provide much-needed support and alleviate patient's financial burdens.
When providing patients with a good faith estimate for a medical service, it's important to remember that it's just an approximation. There are instances where the amount collected may exceed the insurance company's copay criteria. In such cases, refunds may be necessary. You can run a monthly refund report to avoid errors and accurately refund patient balances. You could also identify any pending claims to which the refund could be applied.
Each state has specific regulations governing the issuance of refunds to patients. So, you must comply with these regulations to avoid legal or financial implications.
Outsourcing payment collection to trusted third-party vendors specializing in revenue cycle management can significantly reduce the administrative burden of billing and collections. These companies leverage digital collection methods that are more efficient and cost-effective than manual processes, enabling you to prioritize patient care. With tools like AI-powered chatbots for payment reminders, online payment portals, and predictive analytics to identify patients at risk of non-payment, you can streamline the billing and collection process, resulting in quicker payment turnaround times and improved cash flow.
Glenwood Systems offers an accountable and transparent billing solution from charge capture to resolution. Our practice management system (GlaceEMR & GlaceRCM) provides tailored strategies to optimize revenue streams and focus on maximizing patient balance collection while maintaining the highest standards of integrity and efficiency. Let's team up and relieve your billing anxieties, safeguard your revenue, and improve patient collections.
Schedule a Free Consultation!
