The following is a guest article by Brian Doyle, SVP at Rectangle Health
Recent cyberattacks in the industry caused significant disruptions in healthcare claims processing and billing, impacting physicians, patients, and insurers. A survey done by the American Medical Association (AMA) revealed disruptions caused financial strain and jeopardized patient care. Over a third (36%) of respondents reported suspended claim payments, and 32% could not submit new claims.
These disruptions were particularly challenging for smaller practices, highlighting a specific vulnerability: dependence on a single system for insurance claims and payments. While the outage caused significant hardship, it can also be a catalyst for positive change by encouraging healthcare providers to consider diversifying their revenue streams.
Patient Payments: A Powerful Solution
With cash flow suddenly disrupted, providers were forced to re-evaluate their financial landscape. This outage underscored the importance of capturing patient out-of-pocket payments as a source of income. The rise of high-deductible health plans and increased patient responsibility in healthcare costs had already made patient collections more important. Now, for many small and mid-sized practices hamstrung by issues with claims processing, effective patient payment strategies could be the key to financial stability and a buffer against future disruptions.
Steps to Diversify Revenue Streams with Patient Payments
Here are three critical steps on how to diversify into more patient payment collections to ensure practices get paid efficiently and avoid cash flow problems:
Strengthen Management of Accounts Receivable
The critical first step your organization should undergo is to audit the current accounts receivable process. This thorough and introspective self-evaluation will provide an end-to-end overview of the entire process, thus providing crucial insights for current weak points that can be improved upon.
Auditing billing and collection processes helps staff identify bottlenecks that create delays in billing or slow down administrative tasks. This could be anything from manual data entry to complicated billing codes.
Once you’ve identified the bottlenecks, implement solutions to streamline the process. This may involve automation for repetitive tasks, like appointment confirmations and insurance pre-authorizations. Additionally, consider simplifying billing structures with clear explanations of charges. This fosters better patient understanding and reduces confusion around costs.
Embrace Technology to Drive Efficiency and Faster Results
The rise of patient responsibility for healthcare costs highlights the need for clear communication and convenient payment options. Unfortunately, healthcare often faces communication challenges between patients, providers, and insurers. This can lead to unnecessary visits, improper billing, and confusing statements that leave patients feeling overwhelmed by medical bills.
Technology can bridge this communication gap, improve the patient experience, and reduce friction to collect patient payments. Consider offering:
Automated Patient Reminders
Utilize text messages or email reminders for appointments and outstanding balances. This keeps patients informed and encourages timely payments.
Convenient Payment Options
Embrace modern payment methods like text-to-pay, allowing patients to settle bills with a simple tap on their phone. Text-to-pay boasts high open rates and provides patients with a convenient and secure way to pay. Practices benefit from faster payments and improved cash flow. Additionally, online payment portals empower patients to access billing information and make payments 24/7, reducing administrative burdens on staff.
Empower Your Team to Optimize Collections
Staff play a crucial role in patient payment collection. Effective communication is key to fostering understanding and encouraging patients to prioritize their bills. Here are ways to empower your team:
Clear Communication Training
Train staff to explain charges clearly and succinctly. Avoid medical jargon and break down costs into understandable components.
Payment Options Expertise
Ensure staff are familiar with all available payment options and payment plans. This allows them to guide patients towards the most suitable method based on individual needs.
Compassionate Approach
Patients facing medical bills can feel anxious. Train staff to approach billing inquiries with empathy and understanding. Using compassionate communication builds trust and fosters positive interactions.
By prioritizing an acceleration of patient payments, providers build resilient, financially secure practices. By prioritizing patient collections and establishing better business preparedness diversifying the revenue stream, practices can navigate the disruption and establish a more sustainable financial future, allowing them to focus on what matters most: delivering exceptional patient care.
About Brian Doyle
Brian Doyle is an experienced healthcare payments professional who partners with large-scale healthcare organizations, dental service organizations (DSOs), and centers of excellence to provide state-of-the-art payment and engagement solutions. Brian helps clients to deliver a better patient experience and reduce their accounts receivable (A/R).
As Senior Vice President of Sales for Rectangle Health, he is responsible for sourcing, signing, and launching new business. Based on a consultative approach, Brian recommends ways to make it easier for healthcare organizations to improve efficiency, streamline workflows, and increase patient payments.
Brian holds a Bachelor of Arts degree in History from Colgate University.
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