The increasing shift of financial responsibility onto patients has significantly hindered the average American's ability to access necessary healthcare services. This shift means that even individuals who possess health insurance are not immune to the financial challenges posed by escalating deductibles, co-pays, and services or treatments that are not covered by their insurance plans. These financial hurdles are compounded by the fact that a 44% of Americans lack sufficient savings to cover an unexpected $1000 emergency expense. As a result, a substantial number of people are compelled to delay or completely defer seeking medical care due to the overwhelming fear that they will be unable to afford the costs associated with their healthcare needs.
Of the people that do seek care, the large majority are unable to pay the associated out-of-pocket costs, even as little as $100. Lack of patient payment results in the balance going into bad debt, where it has a mere 10% chance of being recovered. Not only are healthcare organizations are losing revenue due to large sums in collections, but also from a shrinking population of patients that can afford the cost of care.
Because of the shift towards consumer-driven healthcare, healthcare organizations must bridge the gap between patient responsibility and provider integrity. Offering equitable and easy-to-access flexible payment options via a third-party financing program, enables providers to adapt to a consumer-centric system while maintaining financial stability. Here are the top four reasons to offer patient payment plans:
1. Increase Speed to Cash
77% of providers report it takes over one month to collect any payment from patients. Slow payment can lead to increased financial strain on your practice. Offering patients the ability to pay their balance in small increments over time increases the likelihood that patients will make payments, and make payments on time.
Moreover, the ability to make payments from a smartphone or tablet provides patients the added convenience of paying from anywhere. Payments are received within days, not months, providing a steady stream of revenue into the practice.
2. Reduce Burden of Collections
By introducing an automated digital platform, healthcare billing departments no longer need to spend time sending letters or making phone calls to collect from patients. Furthermore, the staff associated with the manual collections process can be utilized for more important tasks associated with patient care. A/R days are significantly reduced, and the cost and administrative burden associated with collecting are essentially void.
Partnering with a non-recourse financing company offers a pre-bad debt solution with personalized payment plans spread out over time. By setting up a plan tailored to each patient's unique situation, providers avoid having accounts sent to collections. In the event that a patient defaults on their plan, the account will continue to be managed by the financing partner–it will not be returned to the provider. Unlike recourse models, non-recourse models absorb the full financial risk of default from the provider.
3. Increase Patient Volume
Flexible payment plans expand access to those struggling to afford out-of-pocket medical costs. Over 50% of Americans have reported delaying or avoiding care due to the inability to pay, and 37% of patients reported they would skip treatment if their provider did not offer a patient financing program.
In recent years, the healthcare selection process has become similar to other consumer-driven industries; customers are researching providers online and looking into the terms associated with care before choosing a provider. By adopting a patient-focused platform that meets patients where they are, practices attract a larger, more diverse pool of patients. Furthermore, patients that have a positive financial experience will return to the provider for future services, as well as refer others.
4. Improve Patient Satisfaction
Providing solutions to help patients manage their finances can build stronger patient-provider relationships. Transitioning to a technology-driven, easily accessible platform helps to re-engage patients in the payment process, improving their overall financial experience.
Patient financing partners have the ability to operate as an extension of your healthcare system by taking on all things related to the revenue cycle. Patients are already wary of the billing process, but discussing patient financing options upfront can make patients feel more supported and understood. Additionally, non-recourse financing plans with no interest, prepayment penalties, or hidden fees alleviate fears of surprise costs coming up down the road.
Understanding why patients can't pay medical bills helps healthcare providers create strategies to address rising patient costs. Partnering with a non-recourse financing company like BridgeMed allows providers to offer flexible payment plans tailored to individual patient needs, thereby reducing the financial burden on patients and increasing the likelihood of payment. At the same time, providers benefit from a more predictable revenue stream and reduced risk of bad debt, as the financing company absorbs the financial risk of default. This collaboration not only enhances the financial health of healthcare organizations but also improves patient satisfaction and access to care, creating a more sustainable and patient-centered healthcare system.
Discover how BridgeMed can benefit both your patients and your healthcare organization with non-recourse flexible payment programs at www.mybridgemed.com.
