How Personalized Payment Plans Improve Patient Collections

Over the last several years, the financial component of healthcare has become just as important, if not more so, as the physical component.

Due to the rise of high deductible healthcare plans, the growing number of uninsured Americans, and increasing out-of-pocket costs, patients all across the country are struggling to afford care. 54% of Americans reported having delayed or avoided care due to cost, some for as long as a year. Even those with health coverage struggle with surprise bills not covered by their insurance.

In order for healthcare providers to collect on receivables, they must offer their patients better options to pay for care. Personalized payment plans close the gap between what patients can afford and what they owe while also opening the doors to people that typically defer care due to cost. 

Empowering patients to pay

The number one reason for non-payment is a lack of payment options, not an unwillingness to pay. With nearly half of patients struggling to understand their financial responsibility for healthcare costs, providers must prioritize cost transparency and affordable payment options as a way to empower patients to pay. By offering personalized payment plans, healthcare organizations are able to include patients that would otherwise struggle to meet the non-negotiable terms or requirements of more rigid plans. Unfortunately, elements such as predetermined payment amounts and credit score minimums often leave patients with bills they cannot pay, ultimately resulting in unpaid bills and dissatisfied patients.

Additionally, personalized financing plans acknowledge that patients have a wide variety of circumstances and give Americans from all backgrounds access to affordable healthcare options. Implementing a customizable financing program with flexible payment timelines, affordable monthly amounts, and a variety of payment methods paves a pathway that customers are able to follow based on their needs. Giving patients more control over their healthcare finances improves the likelihood they will pay and their overall experience.

Simple, easy, accessible

As healthcare becomes more like retail, consumers expect a seamless payment cycle with a streamlined financial experience. Like retail, patients are accustomed to digitized billing processes accessible from their smartphones or tablets. Patients are less willing to call the hospital billing department to ask questions about a statement or get clarification. They want answers at the click of a button.

80% of patients say they would prefer to pay for their care online, meaning that hospitals and healthcare systems need to provide user-friendly patient portals that allow customers to easily manage their healthcare finances. Fortunately, this can be rolled out with personalized patient financing programs. As a result, patients can enroll in a payment plan, manage their finances, and make payments all in one convenient digital place — without the involvement of the provider's RCM staff.

Improved patient experience

At the forefront of improving a patient's healthcare journey is improving the patient's financial experience. 75% of millennial patients reported they would consider switching providers for a better financial experience, indicating that a positive payment experience boosts patient satisfaction and loyalty.

Personalized payment plans improve the patient experience by giving customers more options to conquer their financial challenges. Patients can get treatment without fear of not being able to pay, allowing them to prioritize their health without compromising their budget. Furthermore, the more customization and flexibility available within a financing program, the more likely the patient is to have a positive financial experience.

Where patients benefit, providers benefit

With health systems growing more dependent on patient responsibility payments, they can no longer afford not to offer solutions to help patients cover their out-of-pocket medical expenses. By implementing a personalizable financing program, providers can expect the following benefits:

Increased speed to cash

Slow payment on patient receivables can lead to significant financial strain on a healthcare system. Giving patients the opportunity to finance their medical expenses increases the likelihood that patients will make payments — and make payments on time. Non-recourse programs pay the provider upfront on receivables, which further improves cash flow. Payments are received within days, not months, providing a steady stream of revenue into the practice.

Improved collections

Personalized payment plans provide a pre-bad debt solution by allowing patients to pay their bills in small amounts over time. By setting up a plan tailored to each patient's needs, providers avoid having accounts sent to collections. Personalized payment plans have the ability to increase patient collections and can be implemented at any point in the revenue cycle.

Increase patient volume

Utilizing a tailored solution that puts patients' needs first attracts a larger, more diverse pool of patients to your healthcare organizations. 49% of patients said having clear information on expected out-of-pocket costs before receiving treatment impacts their decision to use a healthcare provider. Providers that offer personalized payment plans not only draw new patients into their practice but also increase the likelihood those patients return for future visits and refer others.

As healthcare continues to shift into a consumerist-driven marketplace, healthcare organizations must be prepared with innovative solutions to keep their patients engaged in both the care and financial aspect of the patient experience. One of the major pain points for Americans seeking care is affordability, which means providers must adjust the billing process to accommodate those that struggle to pay.

By offering digital, personalized financing options, healthcare organizations can bridge the gap between what the patient owes and what they can pay, reducing stress and increasing the convenience of managing expenses. Helping patients navigate their financial journey also pays off for providers that would otherwise lose revenue to patients deferring care and unpaid accounts that are sent to collections.

____________________________________

About BridgeMed

BridgeMed offers flexible, non-recourse financing plans to help patients manage their out-of-pocket medical expenses. BridgeMed's digitally-driven platform can be implemented at any point in the revenue cycle and approves 100% of applicants. With BridgeMed, organizations can increase cash flow, reduce bad debt, and improve patient satisfaction.