In a landscape where patients are responsible for an ever-growing share of healthcare costs, traditional billing practices are falling short as consumers fall farther behind on their payments. Reversing this troubling trend calls for new tech-enabled billing and payment approaches that deliver personalized and increasingly digital patient financial experiences and remove other engagement and payment hurdles.
Ironically, the struggles are especially acute for patients who pay a good amount for healthcare insurance. In 2024, the estimated cost of healthcare for the average person is $7,151, and $32,066 for a family of four according to the Milliman Medical Index.
Healthcare insurance is covering less of the total bill, hurting patients and providers alike:
- Unpaid patient balances after insurance have surpassed uninsured patients as the leading cause of provider bad debt, accounting for 58% of 2021 provider write-offs–more than quintuple from 11% in 2018, according to 2022 research by Kodiak Solutions
- Provider collection rates for balances owed by commercially insured patients have been dropping from 40% in 2020 to 36% in 2023, Kodiak Solutions reported
Reduced Cash Flow and Revenue
Uncollected patient payments are undercutting the financial health of providers, which already operate on thin margins. Not surprisingly, increasing revenue is a top priority for 70% of healthcare finance and revenue cycle executives, according to 2024 research by the Healthcare Financial Management Association and FinThrive.
The study found that six out of 10 also focus on improving patient experience, with 55% combining both goals by targeting enhancing the patient payment experience.
Tech Solutions for Improved Financial Engagement
Simplifying a notoriously frustrating, disjointed, and even frightening healthcare financial journey for patients can go a long way toward improving payments. A significant 14% of adults and 23% of millennials prioritize bills that are easiest to pay, regardless of other factors, according to a July 2023 PYMNTS and Mastercard survey.
A range of technology solutions enable healthcare organizations to streamline and personalize billing and payments, improving patient financial engagement and optimizing revenue collection. Leveraging the latest communications technology offers three big advantages for patients and healthcare billers:
Transparency in Billing
One of the biggest hurdles to patient bill payment is a lack of transparency. Patients often find medical bills confusing and difficult to understand, making them hesitant to pay.
More providers and revenue cycle management firms are changing this experience by adopting cloud customer communication management (CCM) technology to create clear, itemized billing statements explaining charges. Cost estimates for procedures can be readily available on a patient portal or website. This helps patients to understand their responsibility and make informed decisions about their healthcare finances, reducing confusion and frustration around billing.
This level of transparency fosters trust which leads to increased patient satisfaction. Equipping consumers with self-service tools encourages them to take control of their financial healthcare journey.
Tailoring the Patient Experience
A one-size-fits-all approach to patient communication is increasingly ineffective. RCM leader Meduit uses its cloud-based CCM solution in conjunction with other methods such as consumer segmentation and scoring to bring nuance and customization to consumer outreach.
Patient demographics and payment history can inform communication messaging and cadence. For example, a patient who routinely pays on Day 30 doesn’t need a second statement on Day 28.
Use AI-powered analytics to predict patient payment behavior and identify patients at risk of payment delinquency. Machine learning technologies can be used to personalize communications further and tailor interventions such as offering flexible and interest-free payment options in the billing statement.
Omnichannel Communication
Patients today expect to interact with healthcare providers on their terms, through a variety of channels, especially digital and mobile ones. A robust CCM system with omnichannel communications capabilities lets healthcare billers cater to those preferences. Choices could include secure online chat plus emails, text messages, and printed statements, making patient financial information accessible through multiple channels. Patients can have real-time access to their bills, view past statements, download statements, and make secure online payments via a web portal.
By providing multiple touchpoints for patients to engage with their bills, healthcare organizations can remove roadblocks to payment and improve overall engagement.
The Benefits of a Tech-Driven Approach
By embracing a tech-driven approach to patient financial engagement, healthcare IT and RCM teams can reap significant rewards:
- Improved Cash Flow: Easier and faster payment options accelerate payments for faster time to revenue
- Reduced Administrative Costs: Streamlined billing processes and self-service tools reduce billing-related call volume and administrative costs associated with collecting payments
- Enhanced Patient Satisfaction: A streamlined and transparent billing process reduces patient frustration and fosters a positive experience
- Reduced Bad Debt: Early intervention and flexible payment options minimize the risk of unpaid bills
Finance is more aligned with IT than ever before. According to a recent survey by Flywire, 88% of healthcare finance leaders said they work well with senior IT people in their organization. Leaders name the CIO/Head of IT as the person they work most closely with, ahead of the CEO, CMO/CNO, and the Chief Marketing Officer. Nearly half say they’re working more closely with innovative technologies and helping to find strategic partnerships for their organization.
These leaders are pushing the industry toward a more patient-centric approach. By leveraging communication advancements, IT and RCM professionals can bridge the gap between healthcare consumers and their finances, fostering a more positive and efficient healthcare experience and driving positive financial outcomes for providers.
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Photo courtesy of: Healthcare IT Today
Originally Published On: Healthcare IT Today
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