Becker's Hospital "RCM tip of the day" from PatientMatters
By: David Shelton
In September, Becker’s Hospital CFO Report’s daily column, “RCM tip of the day,” featured our CEO, David Shelton’s expertise on how customized payment plans can help hospitals and health systems maximize collections.
In the column, David explains how traditionally, hospitals have used a “one size fits all approach” when it comes to patient billing, which has proven to be ineffective in decreasing hospital collection costs, and actually produces a higher patient default rate –forcing more patients into bad debt status. Rethinking the typical collections strategy to incorporate a patient’s unique financial information, such as their payment history, residual income, and financial obligations, allows hospitals to provide patients with a customized approach to payment. This new way of patient payment, which also includes generating a patient assessment evaluation, a custom monthly payment plan, and guidelines for hospital staff to relay this information to patients, typically results in:
- 200% increase of point-of-service collections within the first 60 days
- 25% decrease in appointment no-shows and rescheduling
- 25% decrease in bad debt vendor expenses
Hospitals can utilize technology and advanced analytics to provide a consumer-friendly patient financial experience and assist patients in meeting financial obligations in a way that is both compassionate and fair, while also increasing cash collections and improving the hospital’s bottom line.