Today, healthcare providers need to focus their attention more on medical billing and collections since insured patients have more financial responsibility.
According to research, the United States has recorded more than $80 billion in consumer debt to hospitals, and 58% of all this debt is healthcare related. One recent report shows that one-fifth of patients are experiencing severe financial distress because they are spending more money on healthcare than they could afford.
Many healthcare providers do not even understand how much most of their patients struggle with medical debt. A 2023 Consumer Financial Protection Bureau report states that many patients experience unexpected health shocks that affect their financial well-being more than their physical health.
Therefore, it is important for healthcare providers to find lasting solutions on how their patients will continuously pay their medical bills with ease in a time when healthcare costs are rising.
In this blog, Unify Medicraft will take us through key strategies that will help healthcare organizations optimize and improve patient collections while upholding compassionate care.
What is Patient Collection?
Patient collection is the process of collecting payments from patients for medical services that their healthcare providers rendered to them. Patient collections in healthcare play an important role in improving the revenue cycle and ensuring the financial stability of healthcare organizations.
But as we all know, patient collections can be challenging for healthcare providers because their patients have different understandings when it comes to their insurance coverage and financial responsibilities. This can lead to confusion and delay patients from making payments.
Different Ways to Improve Patient Collections
Be Transparent with Cost Estimations
Medical billing can be confusing for many patients, so being transparent with them when it comes to hospital prices and how much they may have to pay before they even receive a service can simplify the patient collections process.
When the cost estimation of the medical billing is transparent, it improves patients' chances of paying their medical bills in a timely manner. Also helping patients understand the costs of their upcoming care by providing them with a cost estimation will prepare them all for their medical journey.
According to the Healthcare Finance Management Association, pre-service cost estimations are powerful tools that also help increase POS collections for those patients who can pay right away.
Flexible Payment Options
Every customer wants multiple payment options when paying for the services rendered to them and patients should not be exempted from this opportunity. Most patients want self-service payment solutions that also help hospitals improve patient collections.
When patients cannot pay their medical bills at the POS or pay part of an outstanding balance before they leave the hospital. When there are provisions for more flexible options, it ensures that when they want to make payment for some of their medical bills, they have the option to do so.
When healthcare providers and their teams encourage and educate their patients about payment while they are still in the hospital, it will encourage them to start thinking about their responsibilities. Giving them easy ways when it comes to payments will encourage them to make payments when necessary.
Optimize Insurance Verification
When healthcare providers have accurate insurance verification, it significantly improves patient collections. Using medical billing software, like Unify Medicraft, for real-time insurance verification helps healthcare providers know the coverage details of their patients upfront. This process ultimately reduces the risk of claim rejections and allows healthcare providers to get paid for the services they render to their patients.
Streamline Prior Authorization
Streamlining the prior authorization process of your patient ensures that all necessary approvals are obtained before medical services are given to the patient. This important process minimizes the risk of post-treatment payment hurdles. By investing in medical billing software and processes that help make the authorization process seamless and faster.
Simplify Billing Processes
When healthcare providers have a clear and consistent billing process for their patients, it removes confusion and allows patients to easily pay for the medical services they receive. It also relieves their stress and makes them enjoy their overall health journey.
Accurate Patient Statements
When healthcare providers send accurate medical statements that highlight detailed information and the balance due for medical services to their patients, it encourages them to pay their outstanding medical bills without going through a vigorous process to understand their bills.
An accurate medical statement should contain the following:
- Treatment performed
- Charges of services
- Insurance payments and adjustments
- Contact name, address
- Telephone number for statement inquiries
Many medical statements often received by patients do not have enough information to make the patient understand the charges they are being asked to pay. When patients understand how they are being charged, healthcare providers will have a higher chance of getting patient collections.
Patient Follow-up
Patient follow-up programs are the process of actively reaching out to patients and talking to them about their medical bills. When healthcare providers prioritize patient follow-up, it reminds patients about their outstanding medical bills and makes them focus on paying them. Patient follow-up should be carried out once a month through phone calls and emails.
Patient Payment Plan
Paying an outstanding medical bill can be overwhelming for many patients and the interest rates have even made it more difficult and accumulative over the years. According to a recent study, 40% of Americans struggle to keep up with their bills and credit payments.
Providing an easy payment plan for your patients will relieve them of some of their financial concerns and help them to pay their bills faster. For example: giving them the option to set up a payment plan that works best for them reduces stress around payments and allows them to keep to their word.
Having flexible payment plans such as minimum or maximum installments allows patients to repay their outstanding bills with what they can afford each month. Patients can also choose the time (weekly, monthly, or quarterly) they want to make payments and reduce any stress around monthly payments.
Online Patient Portals
When patients are provided the means to pay their medical bills through an online payment portal it gives them the privilege to make payments anytime and anywhere. Having well-designed online patient portals that provide the patient with detailed information about different payment options makes your services more appealing to younger generations.
With the patient portal, your patient is at peace knowing their payment band details are secured while meeting the Health Insurance Portability and Accountability Act compliance requirements.
Payment Discounts
We all love discounts, and they often cause us to make many purchases. The same thing happens to patients when they are offered a discount for paying their outstanding medical bills on time.
When patients are given discounts for payments made within a specified time frame, it speeds up their payment process, allowing them to meet their financial obligations faster.
This also results in higher patient satisfaction and positively impacts on your revenue cycle. Furthermore, it provides seamless and consistent communication with your patient ultimately boosting your financial health.
How to Improve the Medical Billing Process
Accurate Patient Data Collection
Many medical billing claims denials can be attributed to patient registration issues. Therefore, it is crucial that healthcare providers have the right tools to ensure accurate patient data is collected when coming in for any form of medical service. There is many software their administrators can use to validate patient identity and verify insurance eligibility, and coverage within a few seconds. This process of accurate patient data collection helps reduce claim denials and reimbursement delays.
Identify Claim Errors
Many medical claims commonly contain incorrect information such as incorrect names, unclear denial codes, and many more. According to a recent survey, more than 40% of healthcare providers find it difficult to identify errors before claims submission.
Identifying and correcting claim errors requires professionalism and attention to detail which many healthcare providers do not have. This is why it is important to use medical billing software like Unify Medicraft to correct any claimed error.
Minimize Coding Errors
According to many insurance coverage reports, the most common coding errors are non-specific diagnosis codes and incorrect modifiers. All this can be avoided when healthcare providers ensure their medical coders use the proper modifiers. This also ensures full reimbursement instead of a denied claim. Upcoding or under-coding can also cause claims denial, so, it is important to double-check the codes before submitting any medical claim.
Use the Right Billing Software
One of the best ways to improve the medical billing process is by using the right software. If you are using outdated or clumsy software, it will affect your billing process and medical coding. A cutting-edge, user-friendly billing software designed specifically for the task at hand reduces stress and cuts the time required to submit a claim.
Good medical billing software will save time by automatically verifying patient eligibility, dramatically increasing your clean claims rate, and reducing denials and payer rejections. It also ensures a much more efficient workflow with your administrative staff.
Prioritize Rejected and Denied Claims
Processing rejected and denied claims as soon as they are sent to you is a key part of handling claims efficiently. While a rejected claim can be resubmitted quickly, a medical claim that is denied often takes a longer time as it must first be appealed before resubmitting. Using billing software is great for identifying the reason a claim was denied so it can be adjusted appropriately.
The Bottom Line
With the way the healthcare industry has been evolving over the years, it is important for healthcare providers to provide patients with efficient payment processes to improve patient collections. By embracing different strategies and options powered by technology, healthcare providers can strike a balance between compassionate care and financial sustainability.
Unify Medicraft offers powerful software that helps healthcare providers transform their revenue cycle management using patient collections. Our software empowers healthcare providers to manage their revenue cycle in a more efficient, data-driven, and cost-effective way.