Introduction
Healthcare costs have risen in recent years, affecting both patients and the healthcare industry. As a result, patients opt for higher deductibles to reduce their monthly premiums, Which results in higher bills and decreased patient payment collection. Single workers’ deductibles have increased 54% in the last five years. This is concerning the out-of-pocket expenses, which have increased by 4.6% in 2021.
Increasing medical expenses make it challenging for patients to pay their bills, and providers need help collecting unpaid bills. According to case studies, doctors spend 62% of their administrative costs on billing and insurance-related activities. To prevent severe financial losses, practitioners must improve the patient collection ratio. How can billers overcome these challenges and optimize their revenue collection? In this blog, we’ll explore some of these strategies in detail.
How To Improve Patient Payment Collection?
The American Hospital Association reports that health systems continue to experience a decrease of 19.5% in inpatient visits and 34.5% in outpatient visits as compared to 2019. While achieving patient revenue collection levels similar to those before the pandemic may not be feasible, healthcare organizations can still take measures to enhance their patient payment collection ratio in 2023.
Offer Multiple Options
The first step to collecting payment is for patients to pay their bills. This means offering multiple deductibles options, such as online portals and automatic payment plans. By giving patients more ways to pay, physicians can increase the chances that patients will pay their bills on time.
Provide Payment Estimates Upfront
One of the main reasons patients struggle to pay their bills is that they will know how much they will owe after receiving treatment. Therefore, doctors should estimate the charges to alleviate this issue. This can help patients plan for their medical expenses and avoid surprises when the bill arrives.
Educate Patients On Their Insurance Coverage
Another reason why patients struggle to pay their medical bills is because they need to understand their insurance percentage. Providers can help by educating patients on their insurance payments and explaining how it applies to their bills. This can help patients know what they are responsible for paying and avoid confusion when the bill arrives.
Implement A Payment Plan System
Providers should implement a payment plan system for patients who cannot fully pay their charges. This allows patients to pay their invoices in installments over time, making managing their finances more manageable. In addition, physicians should work with patients to create an affordable and realistic plan for their budget.
Conduct Regular Audit
A medical billing audit can help improve patient revenue by identifying errors in the billing process that may result in delayed or denied payments. As a result, healthcare practices can increase their revenue and avoid potential revenue loss by addressing these issues and ensuring accurate and timely billing.
Use Technology
Technology can be a valuable tool for doctors looking to improve their Patient payment collection. Electronic systems can streamline the process and reduce the chances of errors or delays. In addition, hospitals should consider investing in patient payment collection processing software to automate the process and reduce administrative costs.
Offer Discounts
To encourage patients to pay their charges on time, clinics can offer discounts for prompt payment. This can be a win-win for patients and healthcare professionals, as patients can save money on their bills while healthcare practices can improve their patient-collection ratio. In addition, physicians should consider offering a percentage discount for deductibles made within a specific time frame.
Utilize A Collections Agency When Necessary
If you have any problem with the financial side of your practice, you can contact the outsourced medical billing services in Indiana to collect unpaid dues. Medical billing companies can be a valuable resource for healthcare organizations looking to recover overdue billing. However, they should choose a reputable agency carefully and ensure good practices.
Handle security threats related to Billing Security
Over the last year, the COVID-19 pandemic has significantly increased healthcare cybersecurity vulnerabilities. 93% of healthcare firms have had a data breach in the last three years, with 57% experiencing more than five breaches. Protecting a patient’s records, billing information, and claim data is essential to establish trust between the doctors and the patients. Work only with reliable medical billing companies with a HITRUST CSF certification.
Follow up with patients
Following up with patients regularly can help them stay on top of their patient payment collection. They should contact patients with outstanding dues and remind them of their obligations related to dues. This can be done through phone calls, emails, or letters. By staying in contact with patients, physicians can improve their patient payment collection ratio and reduce the number of unpaid deductibles.
Conclusion
Collecting payments is essential for running a successful healthcare organization. Implementing smart strategies such as offering multiple recovery options, providing payment estimates up front, educating patients on their insurance percentage, implementing a planning system, utilizing technology to streamline processes, communicating clearly with patients, and doing follow-up can help to improve revenue cycle management.
