These days, there are more high-deductible health insurance plans than ever before. Therefore, it is necessary to optimize modern healthcare payment systems to ensure effective revenue cycle management. If your healthcare organization is struggling, these eight statistics could shock you into focusing your efforts onto patient payment collection.
- Out-of-Pocket Patient Expenses Have Gone Up By 230 Percent Over A Decade
An InstaMed study has shown that over the last decade, patients have paid increasing amounts for their care. Whereas in the past, medical insurance covered most of the costs, this is no longer the case. Out-of-pocket costs are now shooting up by 230 percent. Therefore, healthcare organizations need to change in order to cope with the new financial position.
- Forty Percent of Healthcare Providers Have an Annual Collections Deficit of More Than $37,000
According to studies, medical practices today lose as much as 30 percent of their income. These losses are because of underpricing, incorrect coding, unsubmitted or missed charges, and improper or nonexistent follow-ups. It couldn’t be clearer that healthcare payment systems must be updated to tackle this issue.
- Almost A Third of Healthcare Providers Are Unaware of The Amount of Patient Collections They’re Writing Off
According to studies, 28 percent of healthcare providers are unaware of how much they’re writing off annually in patient collections. This lack of organization is feeding into the chaotic approach to patient collections.
- Patients Are Increasingly Shopping Around for Their Healthcare Providers
Sixty-nine percent of people who are struggling to pay their medical bills are now shopping around to find lower prices. As patients face higher deductibles, they are paying closer attention to costs and are looking for better value.
- Since 2000, American Hospitals Have Written Off More Than $500 Billion In Unpaid Healthcare
Managing revenue cycles is impossible without patient payments and patients are increasingly failing to take responsibility for their finances. As a result, hospitals, practices, and organizations within the medical sector are struggling. With more than $500 billion having been written off on uncompensated care by U.S. hospitals, change is necessary.
- Almost Three-Quarters of Healthcare Providers Cite Collections as A Primary Concern
Statistics have revealed that more than 80 percent of self-pay revenue is currently unrecovered. They have also shown that self-payers are 30 percent more likely to default. Therefore, it often costs double the amount to collect from patients as it does from payers. It’s clear to see why this is such an issue for 72 percent of healthcare providers.
- Only A Fifth of Healthcare Providers Keep Patients’ Credit Card Details on File
A decade ago, barely any practices kept credit cards on file. However, these days, more are starting to recognize the benefits. Healthcare providers are still very slow in making this change. However, storing payment details is very convenient and is an effective way for practices to receive the money they’re owed. Patients can check-in more rapidly, fewer statements are necessary, and revenue can be more easily recouped. As a result, practices save time and money.
- Almost Three-Quarters of Providers Find It Takes More Than A Month to Collect Payments
For providers who still send out statements, the chances are that those payments will end up in collections. Having credit cards on file reduces the AR days. Patients enjoy greater convenience and practices receive more money.
BillingTree’s Solutions for Healthcare Payments
With BillingTree’s solutions in place, healthcare providers can benefit from speedy, effective, and streamlined collections. By opting for online healthcare payment systems, providers can improve the patient experience and receive more income. Both providers and patients benefit, and providers will receive more revenue.