Patient Financial Experience: 3 Ways to Improve Billing and Collections Efficiency

The patient’s financial experience isn’t a priority for many healthcare firms. This is evidenced by inefficient billing and collection practices, resulting in unpaid bills and large patient debts. In the 2018 Patient Payment Check-up, 35 percent of patients said it’s inconvenient to pay for healthcare services due to its billing process.

This inefficiency stems from a variety of reasons. For one, many healthcare providers still rely on manual billing practices. Ninety percent still use paper-based methods for patient collections, resulting in delayed payments. There’s also little to no price transparency, which confuses patients once they receive their medical bill.

Negative Effects of Inefficient Billing

Inefficient billing practices disrupt your cash flow and complicate your financial reporting and analysis. As the landscape of healthcare shifts from a pay-for-service to a patient-centric model, you want to evolve your administrative processes as well to future-proof your business.

Your billing strategy also affects your overall practice efficiency. Clinicians get distracted with administrative, financial tasks, reducing the time they spend with patients.

Dysfunctional billing methods are a distraction for patients as well. When they stress over their payment concerns, they’re less likely to comply with their medical plans. This negatively impacts your clinical outcomes.

Your patient experience is also compromised by confusing billing processes. Patients approach healthcare firms with plenty of expectations. And their demands don’t stop with the quality of care or medical services you provide. They want a stress-free, seamless experience with providers, from the initial inquiry until they leave the doors of your clinic or hospital.

Easy payment processes are attractive to patients. If they found your billing methods confusing or stressful, they won’t be as satisfied with your service. Sixty-five percent would consider switching to a different provider if the payment experience was better.

Ultimately, simplifying your billing and collections process offers plenty of benefits to your practice. It can increase your cash flow, patient loyalty, and practice efficiency. Your clinical outcomes can also improve.

Improve your patient financial experience with these three billing and collections best practices.

1. Engage patients early in the financial process

Your financial experience should start with educating your patients to remove their confusion with your payment processes. Explain your pricing policy and make sure these prices remain consistent at all levels of care.

Let patients know the costs for visits, consultations, and procedures in advance. With insurance premiums rising, consumers are now more concerned about their out-of-pocket healthcare costs. They’ve grown more proactive in researching the cost of healthcare services. In fact, 75 percent check the price of medical procedures online before choosing a provider.

This means that patients would prefer that they learn of their financial obligations early on. You can include a price list for your services on your website or make it available upon request for those calling for inquiries.

Engaging patients early in the financial process requires that you educate your staff. With patients inquiring about your services early on, your team must know how to answer their questions accurately. Your clinicians should also discuss payment plans during the initial inquiry to let patients know that they have options.

2. Offer flexible payment options

Patients demand payment options. In the 2017 Porter Research and ClearBalance survey, 90 percent of the respondents said they were more likely to go back to a provider that offers a loan or payment program for patients.

Insurance premiums and healthcare service costs continue to rise, making it difficult for patients to pay their medical bills. You can help your patients shoulder the financial burden of healthcare by implementing flexible payment plans. Divide large medical bills into smaller, more affordable payments spread in a long period to reduce their out-of-pocket costs.

Apart from increasing patient satisfaction, flexible payment options can improve your cash flow. Patients are more likely to pay if they have options, reducing their debt, and increasing your revenues.

3. Digitize your bills payment

Paper-based payment methods are not only inefficient and time-consuming; they also frustrate your patients. Plus, manual processes are more susceptible to errors and inaccuracies. There have been cases where patients received two bills for the same service but with different total costs. Electronic payment processes eliminate these kinds of errors.

Digitizing your bills payment also reduces waiting time, which is another common source of frustration among patients. Having patients line up at the cashier to settle their bills can crowd your lobby or reception area, increasing waiting times.

A medical practice management service and healthcare software such as patient portals and billing applications simplify your financial tasks. These allow your patients to pay their bills without having to go to your clinic. Plus, they can see their total bill amount, outstanding balance, and insurance information in one place.

An efficient billing and collections system may seem inconsequential when considering your clinical outcomes. However, providing quality care and service to your patients requires acknowledging all aspects of a patient’s interaction with your practice. You don’t want something as simple as financial responsibilities to interfere with the quality of care that a patient receives.

Ultimately, patient experience is critical to both their recovery and treatment plan and your future as a business. Improving your billing and collections processes satisfies your patients, but it also future-proofs your bottom line.