5 Ways to Improve Patient Payment Collections
Are the revenue management strategies of your practice over the years telling the same story of rising bad debts?
Patients are made cost-conscious consumers of healthcare services by increased Out of Pocket (OOP) contribution through higher co-pay, deductibles (HDHP) and co-insurance. So a good share of revenue undoubtedly comes from the patients, collection of which is becoming protracting and unusually unsuccessful.
JP Morgan study shows that, in US, the rate of bad debt is increasing at well over 30% per year.
This signals that patient payment collection is not done in the way it should be by a majority of practices. There could be many reasons for revenue leakage like inconsistent payment collection, human errors, archaic collection procedures etc. Now that the ‘self-pay patient’ is a reality in the healthcare world, it is essential that you focus on what happens at the point of collection and analyze the following:
- Is the process of payment collection streamlined?
- Are the existing modes of payment enough for maximizing the collection?
- Can your front office access accurate information on co-pay, deductible and status on outstanding?
- Do you have the data of the ‘waivers’ you have given and a methodology in place to identify possible bad debts?
If your answers to the aforementioned are matters of concern then it is time for you to go that extra mile of digitizing the collection process to establish a better revenue management strategy in place. This insight will guide you to pick the right tools and strategies needed to improve your patient payment collection for optimizing your revenue cycle.