Why the U.S. is Number One in Healthcare Administrative Costs
By Gordon Jaye, VP Hospital Operations
The Journal of the American Medical Association recently compared healthcare spending in western countries, including the United States, the Netherlands, United Kingdom, and Canada, and found that the U.S. spends approximately twice as much as any of these industrialized countries on medical care. While there are many factors that impact the price tag of a medical bill, a large portion of our health system spending is a result of one area we don’t often consider: administration costs.
Healthcare administration encompasses a wide range of tasks, however, provider organizations state that generating claims and collecting complete payments from insurance providers and patients is a huge factor in driving up costs.
As more of the burden shifts to patients to pay for their own care, many hospitals do not have a strategy in place to efficiently collect payments directly from patients. Without a procedure for collection at point-of-service and proper training for the administrative staff, providers are suffering the consequences through unrecoverable revenue.
In working with provider organizations for more than 30 years, we’ve determined that creating personalized payment solutions, such as the IntelliPass® System, at the point of care is one solution that has truly moved the needle when it comes to improving cash flow and profitability while simultaneously optimizing the patient financial experience. With the help of tools, technology, and training that facilitates patient financial assessment, hospitals can determine eligibility, verification, and propensity to pay to collect appropriate payments directly from patients.
In order to reduce healthcare administrative costs, hospitals will need to find new ways to determine what patient payments are, communicate that financial responsibility to patients, and effectively collect those payments in a streamlined, efficient and cost-effective manner.
Get in touch with our team to learn more about how the IntelliPass® System can support your provider organization and help you reduce costs while increasing revenue.