Debunking 8 Myths About Patient Financing

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Debunking 8 Myths About Patient Financing

There are various funding firms out there and that they all claim to supply nice things for his or her dentists and patients. We’re here to indicate you ways several of the funding myths out there are merely not true!

Myth1: No funding company guarantees payments

Patients lose thousands of greenbacks each year because of the dearth of accessible funding choices. Though there’s funding obtainable, they lose cash as a result of patients don’t create payments to the loaner.

Myth2: There is no truly non-recourse company

Patients who would like treatment are typically those that require to finance the foremost. several of them have had awful experiences with finance within the past and are hesitant to even strive to obtain finance once more. Even once an organization says it’s “non-recourse” they’re still afraid that the loaner can harass them and follow their alternative assets.

Myth3: There’s no actually non-recourse company

Patients who want treatment are usually those that require funding the foremost. Several of them have had awful experiences with funding within the past and are hesitant to even attempt obtaining funding once more. Even once an organization says it’s “non-recourse” they’re still afraid that the loaner can harass them and trail their different assets.

Myth4: There’s no actually no-interest finance

You’ve detected it before. Once corporations provide no-interest finance, they realize ways that to charge you fees and charge different penalties left and right. There are hidden fees and fine print and you only never recognize precisely what you’ll owe.

Myth5: Implementation and administration will be a nightmare.

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It doesn’t be. Implementation quality and times vary widely. Some programs are complete hand-offs to a 3rd party with no impact on your IT systems and your workers merely provides out data. Then it’s up to the patients to use online for loans that need sturdy credit scores.

Other funding programs that settle for all patients referred by suppliers is up and running in thirty days roughly. The program ought to conjointly create staff’s lives easier and involve a simple, stepwise implementation method. This includes a listing that covers however accounts are going to be transferred over, funding set up, and any technical needs.

In addition, patient funding leaders manage the administration and client service, permitting your revenue cycle team to handle different priorities, and a few provide time period performance reports and access to recorded calls with patients.

Myth6: We lose control if we bring in third parties.

That depends on the service supplier chosen. Some finance corporations work with every supplier to ascertain and implement specific terms and policies for the organization’s payment programs instead of having them choose between a restricted portfolio of payment plans. However, the payment arrange is run and the way the finance firm handles client service can also create an enormous distinction in satisfaction for patients and revenue cycle workers in addition to total collections.

Providers and their patients will now not afford to let myths concerning patient finance hold them back. The previous ways in which of managing the revenue cycle got to drop to new approaches that work the truth of who’s paying. Attention suppliers that wish to thrive during this new economy can be got to use a large number of choices, as well as patient finance, to remain competitive and financially viable in order that they will fulfill their mission to serve their communities.

Myth7: No- or low-interest financing doesn’t improve our financial performance.

Actually, suppliers considerably improve their monetary performance with some forms of patient funding. A national health system, for instance, saw debt diminish by 100 percent and self-pay A/R decrease by 2 hundredths once implementing their patient funding program.

What’s additional, some patient funding companies forthwith fund the patient balances, minus the charge, up income and reducing A/R days. A multi-specialty medical cluster with quite one hundred forty physicians received $245,000 direct once going stick out their patient funding program, which figures nearly doubled to $450,000 once its second year.

Myth8: We’ve never had patient financing so we wouldn’t need it now.

The healthcare revenue cycle has changed dramatically, requiring new approaches. Out-of-pocket costs for patients have skyrocketed, with 51% of covered workers in 2020 has an annual deductible of $1,000 or more for single coverage, up from 34% in 2020, according to the Kaiser/HRET Survey.

Now more than half of American adults say they’d have trouble paying a medical bill of more than $500, according to the 2020 HealthFirst Financial Patient Survey.

The math is pretty clear: While millions of people are obliged to pay more of their medical care, they don’t have the money. For healthcare providers this means:

  1. Write off more bad debt and cut spending, or
  2. Implement solutions, like patient financing, that make care affordable for patients while helping ensure providers get paid for their services.

Debunking 5 myths about patient financing

Patients are leaving a huge hole in providers’ bottom lines: They now are the third-largest responsible payor after Medicare and Medicaid but 68% with medical bills of $500 or less did not pay off the full balance during 2020, up from 49% in 2020, and headed to 95% by 2020, according to a June 2020 TransUnion analysis.

What’s surprising is the limited response of providers to this unsustainable situation. Some have taken initial steps: requesting payment upfront, improving billing statements, helping patients enroll in Medicaid and insurance plans. But that’s not enough to reverse this alarming non-payment trend.

Like many consumer companies from Home Depot to Toyota, the answer for providers seems clear: Offer no- or low-interest installment payment programs so patients can get needed care and pay in affordable amounts over time.

Not only would this increase volume and total collections but it builds patient satisfaction, goodwill and loyalty. So why has healthcare been slow to adopt patient financing? Below are five myths that may be holding you back.

Myth: We’ve never had patient financing so we wouldn’t need it now.
The healthcare revenue cycle has changed dramatically, requiring new approaches. Out-of-pocket costs for patients have skyrocketed, with 51% of covered workers in 2020 having an annual deductible of $1,000 or more for single coverage, up from 34% in 2020, according to the Kaiser/HRET Survey.

Now more than half of American adults say they’d have trouble paying a medical bill of more than $500, according to the 2020 HealthFirst Financial Patient Survey.

The math is pretty clear: While millions of people are obliged to pay more of their medical care, they don’t have the money. For healthcare providers this means:
1. Write off more bad debt and cut spending, or
2. Implement solutions, like patient financing, that make care affordable for patients while helping ensure providers get paid for their services.

Myth: No- or low-interest financing doesn’t improve our financial performance.
Actually, providers significantly improve their financial performance with some types of patient financing. A national health system, for example, saw bad debt diminish by 10% and self-pay A/R decrease by 20% after implementing their patient financing program.

What’s more, some patient financing firms immediately fund the patient balances, minus the service fee, improving cash flow and reducing A/R days. A multi-specialty medical group with more than 140 physicians received $245,000 upfront after going live with their patient financing program, and that figure nearly doubled to $450,000 after its second year.

Myth: Implementation and administration will be a nightmare.
It doesn’t have to be. Implementation complexity and times vary widely. Some programs are complete hand-offs to a third party with no impact on your IT systems and your staff simply gives out information. Then it’s up to the patients to apply online for loans that require strong credit scores.

Other financing programs that accept all patients referred by providers can be up and running in 30 days or so. The program should also make staff’s lives easier and involve a straightforward, step-by-step implementation process. This includes a checklist that covers how accounts will be transferred over, funding setup, and any technical requirements.

In addition, patient financing leaders manage the administration and customer service, allowing your revenue cycle team to handle other priorities, and some offer real-time performance reports and access to recorded calls with patients.

Myth: C-level executives aren’t interested in patient financing.
Top leadership often isn’t aware of the extent to which patient financing can enhance the organization’s standing with patients and in their communities while helping improve their bottom line. Revenue cycle executives find that also emphasizing the impact on patient satisfaction is extremely persuasive to senior management. Patients satisfied with their medical billing experience are five times more likely to recommend a hospital and two times more likely to recommend a physician than those who were not, according to predictive analytics firm Connance.

Myth: We lose control if we bring in third parties.
That depends on the service provider chosen. Some financing firms work with each provider to establish and implement specific terms and policies for the organization’s payment programs rather than have them choose from a limited portfolio of payment plans. How the payment plan is administered and how the financing firm handles customer service also can make a big difference in satisfaction for patients and revenue cycle employees as well as total collections.

Providers and their patients can no longer afford to let myths about patient financing hold them back. The old ways of managing the revenue cycle need to give way to new approaches that fit the reality of who’s paying. Healthcare providers that want to thrive in this new economy will need to use a multitude of options, including patient financing, to stay competitive and financially viable so they can fulfill their mission to serve their communities.

The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker’s Hospital Review/Becker’s Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.

Debunking 8 Myths About Patient Financing

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