Patient participation in the payment for healthcare services has become more complex and challenging for healthcare providers. It is critical that providers receive payment in full for the services they provide as quickly as possible by overcoming some of the basic challenges in the payment collection process and by better understanding their customers and their propensity to pay.
The collection process is complex in the healthcare sector, with payments often coming from multiple sources, one of which is the patient.
But how can healthcare providers best utilize their resources in the payment collection process? How can new technology be easily implemented and used to improve revenue cycle management (RCM) and provide a positive patient experience?
One effective way in which healthcare providers can improve collections is by breaking down self-pay patients into one of four classifications and apply strategies to best collect from them accordingly.
Those who can pay their bill, and probably will
By offering multiple bill presentment and payment channels, providers can quickly reduce their RCM time. By including the use of web payment portals, Interactive Voice Response and Personal URLs (PURLS) on statements, healthcare providers can offer more ways for patients to conveniently make payments, and can work towards encouraging more patients to pay their bills on time. And remember, if you offer on-site credit and debit card payment services, you can collect payment at the point of service!
Those who can pay their bill, but delay, resist and at times refuse to pay
For these patients, you should consider your outsourcing options and focus your internal efforts on those accounts you believe have a medium or higher propensity to pay. This will enable you to make the most of internal resources and employee skills, in order to collect from those patients more likely to pay.
All medical service providers should establish an out of office means for payment collection - such as a website that accepts debit or credit card - for all patients that fall into categories 1 and 2.
Those who have the means to pay only a portion of their bill
Offer flexible payment terms. It is easy to implement payment plans with automated recurring withdrawals to allow for maximum recovery of the debt being serviced. If a patient pays with a check, for example, for NSF, where banks currently re-present returned checks for three consecutive days, there are now payment services that can strategically manage the returns by holding checks and presenting them on specific dates that are the most likely to yield a return. By re-presenting a check on strategic days, such as the first or fifteenth of the month, you increase the time-frame in which funds can be made available.
The technology is also available to introduce more patient-friendly payment channels such as pre-funded accounts, where healthcare providers can receive what is in effect a 'payment of good faith' - encouraging patients to pay upfront for their upcoming treatments or procedures.
All of this crucially contributes to a reduction in RCM, ensuring that health providers are paid for their services in good time.
Those who cannot pay their bill at all
Identify quickly and follow your internal policies regarding charity care and bad debt allocations so you don't waste time and effort trying to get these patients to pay with checks, or credit and debit cards, which they just don't have.
Using technology to improve RCM
By using technology to enhance the collection of payments, providers can quickly sort their patients by their ability to pay and then offer them the most appropriate payment options. Healthcare organizations can then add other patient services such as allowing them to negotiate payments online - all of which will help build and strengthen the organization-patient relationship. This will significantly reduce outstanding balances and patient bad debt, improve the RCM and go a long way toward solving the patient payment conundrum.
Matt Llewellyn is vice president of healthcare sales at on-demand payment processor BillingTree.