Optimize Self-Pay Collection Strategies To Stay Financial Healthy

1

• Optimize Self-Pay Collection Strategies To
  Stay Financial Healthy

2
Optimize Self-Pay Collection Strategies To Stay
Financial Healthy
Adverse effect of pandemic is rise in an
unemployment, providers need to optimize self-pay
collection strategies to support patients and
revenue collection during this difficult
time. Healthcare is the industry most at-risk
during the coronavirus (COVID-19) pandemic.
Providers are on the front lines of response
efforts. At the same time, the financial
implications of the pandemic are also creating
significant revenue cycle challenges, putting
providers even more at risk during the
pandemic. With over 36 million Americans
claiming unemployment at the end of March 2020,
the number of individuals without health
insurance is reaching record highs. If
projections by the Federal Reserve hold up,
upwards of 7.3 million workers and their family
members will become uninsured by the time the
pandemic has run its course. Payments for health
insurance deductibles increased by 229 percent
over seven times the 31 percent rate of increase
in wages during that same period, according to
Kaiser Family Foundation. For households with
limited resources, the simple fact is that
growing financial responsibility for
out-of-pocket expenses was already competing with
basic needs, such as mortgage payments, car
payments, and food. Today, these challenges are
even more emotional and overwhelming for many
patients as they face unemployment for an unknown
period.
3
Optimize Self-Pay Collection Strategies To Stay
Financial Healthy
This spells trouble for healthcare providers who
are treating COVID-19 patients, including those
without healthcare coverage. Engage Patients for
Self-pay collections In the past, the most common
source of friction was patient confusion about
how much he or she owes for services after
insurance. Today, with roughly 45 percent of
Americans being inadequately insured, an
increasing number of patients are stressed about
making ends meet. This financial uncertainty
means it is more important than ever for patients
to understand the upfront payments required at
the time of care. It is also essential for
hospitals, health systems, or medical groups to
provide digital tools that allow patients to keep
them involved in the revenue cycle over
time. Its clear many organizations havent
found the best solution to maximize the time they
spend speaking on the phone with patients or
sending out collection letters whatever
approach they take to interact with patients,
says Law. And in the current healthcare
environment, or even after the pandemic has ended
and we ramp back up to normal, those low-touch
approaches may not close the gap.
4
Optimize Self-Pay Collection Strategies To Stay
Financial Healthy
When health entities try to make the most of
their IT investments, they may use software
patches and manual workarounds to make older
legacy systems meet modern business needs.
Although this might initially seem like a
cost-effective solution, Law has found this
approach to be more expensive and
resource-intensive than purchasing new technology
upfront. This insight rings especially true in
revenue cycle management, where inefficient IT
not only contributes to expensive overhead but
can also cause organizations to leave revenue on
the table. Three digital solutions driving
patient financial experience and providers
bottom lines. Estimate the price Helping
patients understand what they owe and why is key
to developing an action plan for patient
collections. A recent survey by HealthEdge linked
increased price transparency to both improved
patient satisfaction and patient payment rates.
Giving patients accurate price estimates on the
front-end rather than expecting them to use
online estimators at home ensures patients
understand their responsibility and gives them
time to prepare, thereby improving providers
likelihood of receiving payment.
5
Optimize Self-Pay Collection Strategies To Stay
Financial Healthy
Assessing propensity to pay What a patient owes
and what he or she can afford may differ,
especially when they are just returning to work
and may have other bills to catch up on. Tools
that forecast a patients ability to pay can be
just as valuable as price estimators in
developing more effective collection strategies.
These tools help organizations fine-tune the
financial counseling aspect of making payments by
determining a patients likelihood of paying
out-of-pocket expenses based on credit history
and past payment behaviors, among other
factors. Flexible communication
infrastructure Using patient demographics,
providers can enhance patient financial
engagement by investing in flexible communication
strategies that put patients in control of their
financial interactions. By providing patients
with a range of communication channels and
opportunities, patients are more likely to engage
with the channel that works best for them,
thereby improving patient engagement and
providers chances of recouping payment.
6
Optimize Self-Pay Collection Strategies To Stay
Financial Healthy
Financial Partner Choosing the right financial
solutions partner is key to satisfying parties on
both sides of the table and staying true to
deeper values during this global crisis and the
resulting period of recovery that will inevitably
come.