These days, healthcare providers are increasingly finding that they are struggling with growing numbers of past due medical receivables, and this can lead to limited cash flow and potential financial difficulties. Patients who are struggling to pay their share of their medical bills at the point of treatment may well continue to fail to pay once their invoice becomes due, and then, furthermore, once their bill is past due. Evidence has shown that, with every month that passes, the chances of receiving the full amount owed becomes smaller. This is an ongoing issue for organizations.
Loss of Value Over the First Four Months
The value of past due medical receivables has been shown to substantially reduce over a surprisingly short period of time. Once a debt has reached 90 to 120 days, data show that the chance of collecting the full amount owed drops dramatically, and the organization can expect to collect only around 20 percent to 60 percent of the receivables by this point. This represents a huge financial loss for the healthcare companies involved, and, therefore, a solution needs to be put in place in order to reduce bad debt losses. While there will always be a few accounts that will require a third-party recovery solution, by putting strategies and policies in place, such as an organized follow-up schedule and an effective healthcare payment processing system, healthcare providers will be able to decrease their bad debt and the financial problems that may ensue.
Arranging Contacts and Follow-Ups
By arranging an organized schedule for contacting those account holders who owe money and following up on their debt, healthcare companies can stay on top of past due medical receivables. By putting in place effective healthcare payment processing software, organizations will enjoy a convenient and streamlined approach that will lead to receiving more payments in a more timely manner. Collections should be a high priority. There should also be a high level of continued contact with patients to make sure that money is recouped at an early stage in order to mitigate the loss in value that has been demonstrated to occur over time. This will limit the overall amount of bad debt that will end up being written off.
Offering Convenient Payment Options
With the knowledge that past due medical receivables lose considerable value with time, it makes sense for healthcare organizations to put in place strategies to make paying for treatments easier and more convenient for patients. Cultivating a positive relationship between patients and healthcare providers is paramount. By implementing an efficient and accessible payment portal, organizations can make it simpler and less stressful for debtors to make payments within a reasonable amount of time. The benefit of an Internet healthcare payment portal is that patients who owe money can make a payment at a time that best suits their needs, whether it is during the day or at night, and can also use their preferred payment method for extra convenience. By offering the opportunity to see all account details at a glance, patients can see how much they owe, set up a payment schedule for large balances, and activate their payment 24/7 either by telephone or over the Internet for a real-time instant receipt. Both patients and healthcare providers can benefit from putting in place an efficient system for tracking and collecting past due medical receivables. Organizations will lose considerably less money in the long run, and patients can enjoy greater convenience and greater peace of mind that comes with knowing that their medical bills are no longer a cause of worry and stress.