In the era of high-deductible health plans, the new hospital reality hinges on healing a fractured patient billing experience that hinders collection rates and increases accounts receivable write- offs that erode providers’ bottom lines. Most in-house hospital collection processes are reflective of a bygone era when copayments were the bulk of out-of-pocket payments collected from patients, not bill payments. At the onset of this high-deductible era, hospitals looked to their early-out vendors to collect the larger bill payments, but hospitals that fail to rethink their in-house and outsourced approaches can surely expect a nagging patient bad-debt problem to get worse before it gets better.
A consultative in-house point-of-service approach and outsourcing collections to vendors with new technology cure the most chronic pain in the patient billing process—fixing the billing process via a digital patient statement. The good news is that hospitals that are reinventing their patient billing processes are increasing collection rates, reducing finance costs, and avoiding collection-related costs all while turning an unpleasant patient experience into a positive one, one bill payment at a time.
This white paper will be useful to midlevel and senior healthcare leaders with responsibilities for their institutions’ revenue cycles or collections who are seeking to use automation and outsourcing to improve outcomes in these areas and make the case for doing so. Senior-level managers at healthcare providers may use this white paper to evaluate or understand the business case for the automation and outsourcing of patient billing and collection.