By Dustin White, VP, Healthcare Solutions
Self-Service Payments Can Solve the 30-Day Payment Lag
The challenges facing healthcare providers are growing exponentially. Patients and providers alike are feeling the sting of an industry that faces staffing shortages, growing costs, and increasing complexity.
The combined impact of these factors is felt primarily within collections, where more and more health systems are leaning on early-out vendors earlier in the patient collections process. In essence, this has forced health systems to pay for collections, even in situations where patients are likely to pay and revenue is likely to be generated. It’s a costly expense at a time when healthcare providers must maximize every penny.
What’s the Impact of Outdated Healthcare Billing and Payment Systems?
The statistics are alarming when it comes to collections. A PYMNTS Intelligence report shows that 70% of healthcare providers say that it takes more than 30 days to collect a payment from a patient. And that’s if they pay at all. 64% of patient balances are left unpaid.
The challenge of healthcare collections is exacerbated by the staffing shortages experienced by many healthcare providers. The task of collecting payments can often lead to burnout of already overworked staff, especially as outdated collection processes demand more manual intervention. In other words, outdated billing and payments, driven by manual processes, is likely costing healthcare providers more than just money.
How Self-Service Payment Options Can Reduce Collection Delays and Improve Patient Satisfaction
The evolving landscape of patient responsibility demands a smarter approach to collections. This should be centered around greater self-service. While early-out vendors can be highly effective for engaging patients with outstanding balances and providing specialized support, the proactive power of self-service payment options is increasingly undeniable.
The benefits of self-service are as follows:
- Transparency & Control: Patients can engage through their preferred manner to more easily understand their bill, view payment plans, and make payments on their terms.
- Efficiency: Streamlined digital processes lead to quicker payments and reduced administrative costs. Staff gains more time for other revenue generating activities versus redundant/tedious patient payment follow up.
- Improved Cash Flow: Self-service helps to drive payments earlier in the revenue cycle, often at the point of service or soon after, dramatically improving the cash flow cycle.
- Better Patient Satisfaction: Self-service empowers patients to engage with healthcare providers in a manner of their choosing, improving the payment experience, which contributes significantly to overall patient loyalty.
Key Questions for Billing and Payment Partners
- What types of payments do you offer? Self-service payment options can include many things, but should offer both digital and cash-based options.
- What parameters would you place on self-service payments? Items such as minimum payments and limited days scheduling should be flexible but also purposeful. Partners should deliver guided expertise as to best practices.
- How will my staff benefit? The patient experience is one half of the equation. Modern billing and payment platforms must deliver streamlined reporting and reconciliation, while also reducing the time spent collecting payments. If staff benefits are limited, you will simply accelerate staff churn.
For more information on how healthcare providers can speed collections, improve satisfaction, and drive savings, download our new playbook, 5 Ways to Improve Healthcare Bill Pay Capabilities: A Healthcare Finance Leader’s Playbook for Expanding Payments.
