Providers Overhauling Patient Collections Strategies For COVID-19

The COVID-19 pandemic has had a significant impact on patient collections strategies, according to a new survey from the Healthcare Financial Management Association (HFMA).

In the survey of HFMA Digital Annual Conference attendees, 88 percent indicated that COVID-19 has impacted their approach to patient collections in some way, and nearly a fifth (18 percent) said the virus impacted their approach in every way.

The findings suggest that almost one in five healthcare providers are overhauling their entire patient collections strategy because of COVID-19, HFMA stated.

“Many patients were challenged to meet their healthcare financial responsibilities prior to the arrival of COVID-19 due to high-deductible health plans, in addition to all their other financial obligations,” Rick Gundling, senior vice president of healthcare financial practices for HFMA, said in a press release. “Now, you add a nationwide pandemic, deep economic uncertainty, rapid job losses and a sudden decline in healthcare coverage into the mix, and a larger number of patients are overwhelmed, with some simply unable to meet their responsibilities.”

Hospitals and health systems are finding that their patient collections strategies must be more flexible to accommodate evolving patient needs. The survey found that 70 percent of providers have increased patient payment options, 74 percent have adjusted bad debt placement timing, and 61 percent have delayed credit reporting.

Some providers also reported that their organizations are allowing patients to extend payment terms and delay payments, while others are considering more convenient payment options that allow for contactless payment.

Most healthcare providers (73 percent) also said their organizations are ramping up efforts to identify unemployed patients and patients who are under-insured or uninsured.

“Healthcare organizations that are able to offer more payment flexibility and forgiveness will not only help patients in their time of need but build relationships with individuals based on trust and aligned priorities,” Gundling stated. “This patient-centered approach can help lay the foundation for a long-term patient relationship that is positive.”

Providers will need to foster more long-term patient relationships to improve patient collections, the survey indicated.

Many respondents expect the impact of COVID-19 on patient collections to evolve over the next year. Additionally, almost 1 in 9 (88 percent) of providers predicted some level of change to their patient collections practices going forward.

Practices that are likely to change according to respondents included greater flexibility and leniency with payment (19 percent), extended bad debt placement credit reporting (76 percent), and changes to financial assistance and advocacy programs (78 percent).

Respondents also frequently described expected changes to their practices using the words “compassion,” “flexibility,” and “creativity.”

“The changes stemming from COVID-19 are shaping up to be significant and long-lasting,” said Gundling. “Organizations can expect further disruption and difficulty in the coming year, however there is also the opportunity for improvement. While almost no one anticipated a pandemic, organizations have the chance to use it to realize true change in patient collections, making the process more efficient but also inherently more patient-focused and compassionate.”

The uninsured population is slated to increase by 2.9 million people by the end of the year because of job losses and disruptions caused by the pandemic, the Urban Institute recently reported.

Providers are already experiencing increased difficulties in collecting payments from newly uninsured and other patients. Nearly half of hospitals in a recent survey conducted by consulting firm Kaufman Hall said they have seen increases in bad debt and uncompensated care. Over 40 percent also said they’ve experienced increases in the percentages of uninsured or self-pay patients and Medicaid patients, respectively.

Hospital executives in the Kaufman Hall survey also predicted the impact on the changes in payer mix to persist well beyond the public health emergency, with most anticipating the pandemic to last at least through the summer of 2021.