Hospital patients looking for an easier way to plan out their payments - and hospitals looking for a better way to collect them - might benefit from a recently announced partnership between two providers of electronic payment solutions.
TransUnion, a Chicago-based developer of credit and information management services, is joining forces with Aequitas Capital Management, a Portland, Ore.-based alternative investment manager, to develop an interest-free, hospital-branded finance card for hospital patients.
"As patients take on even greater financial responsibility for healthcare costs, offering CarePayment's unique patient finance solution with TransUnion Revenue Manager makes absolute sense for both patients and hospitals," said Mike Snitmen, vice president of TransUnion's healthcare group, in a press release. "Our partnership ensures that patients have greater flexibility to pay off their debt, while helping hospitals significantly increase their cash flow."
TransUnion's Revenue Manager software verifies patient identity and self-reported information at registration, then searches for financial assistance programs for patients and their family members.
TransUnion will integrate Revenue Manager with Aequitas Capital's CarePayment program, which provides a hospital-branded finance card that allows for monthly payments, inbound/outbound customer service calls, payment processing, reporting, Web access and late payment management. The automated process requires a patient's social security number and then establishes a monthly payment plan (4 percent of the highest balance or $25, whichever is greater).
According to Snitman, more than $31.2 billion in uncompensated care was provided by hospitals in 2006, as reported to the American Hospital Association.
"Hospitals using CarePayment have experienced average net collection results of 40 percent compared to 20 percent or less prior to implementing the program," said Steve Wright, senior managing director of healthcare markets at Aequitas Capital. "With our zero-interest finance card, patients no longer have to use high interest credit loans to pay for unexpected medical costs. In addition to improving their key financial metrics, our hospital clients are also enhancing their overall mission by helping patients avoid financial hardship."
What are the benefits and drawbacks of using interest-free, hospital-branded credit cards to help patients pay their hospital bills? Send your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com