Studies have shown that patients are now the third-largest healthcare payer in the country, following only Medicare and Medicaid. Only one-third of the payments patients are responsible for are successfully collected, according to research.
There are several reasons patients do not pay their healthcare bills, including:
Higher deductibles: As deductibles increase, the likelihood of prompt, in-full payment decreases.
Rising out-of-pocket costs: Patients have experienced a 29.4 percent increase in deductible and out-of-pocket costs since 2015.
Growth in patient responsibility has risen faster than wage growth (six times faster) and exceeds the rate of inflation, resulting in health care expenses competing with other household bills such as mortgages, credit debt, and student loans.
Limited payment options: This highlights the importance of having payment options available at the point of services, at checkout and online, so they can pay when it’s convenient for them. If the patient goes home without paying their balance, they are 50 percent less likely to pay their bill.
Given this environment, some hospital administrators have been delighted to discover a technological solution that increases the collection of patient payments.
A key to collecting patient payments is making it easy, according to Bird Blitch, chair of the Revenue Cycle Improvement Task Force. Black Book survey said they would pay a healthcare provider online if given the option.
A Comprehensive Approach
Administrators at North Memorial Healthcare in Minnesota have implemented SECUREPAY, a cloud-based software owned by ABILITY Network, which successfully integrates with its electronic health records (EHR) system, Epic. North Memorial Healthcare, a health system composed of a 648-bed hospital on two campuses, two surgery centers, and 18 multi-specialty clinics, has found this combination improved the efficiency of patient pay.
Want to learn more about how North Memorial succeeded with overhauling their patient collections process?
Download our white paper: ABILITY | SECUREPAY™ Successfully Integrates with Epic to Ensure Patient Payments