Patient payment responsibility increased 11% in 2017 according to a recent analysis by TransUnion Healthcare.
Third-party payers are paying less and patients are choosing higher deductibles to keep their out-of-pocket premium costs down.
All of these trends point to one unavoidable fact: A greater percentage of your top line revenue will be contingent upon your business’s ability to collect payments directly from your patients.
Your practice must have a robust patient collection process in place in order to protect a growing percentage of your earned revenue.
An efficient collection process starts with a solid financial policy.
Here are 3 reasons why a good financial policy can help improve your patient collections:
1. A financial policy clearly communicates payment term expectations
A smooth collection process begins with a clear understanding of payment expectations. Your documented policy sets the payment terms and escalation process.
Some financial policies require payment at time of service. For others it may be net 30 days. No matter what your policy, you can’t expect people to pay on time if the payment terms are not clearly communicated in writing.
Your policy must be easy to understand. It should be void of industry jargon and understood at an 8th grade reading level. Effective financial policies are straightforward and concise.
2. A financial policy serves as a roadmap for your collection team
The financial policy will be used as a step by step collection procedure for your team. It is a documented process that ensures consistent and fair treatment for all of your patients. A documented financial policy should be accessible to any member of your team who needs to help a patient fulfill their financial obligation.
Communication regarding finances with your patients can be a delicate subject. In order to move through the process effectively, it needs to be consistent. Your financial policy is a powerful tool for standardizing and improving the productivity of your collection team.
3. A financial policy helps relieve emotional burden
In some circumstances, collection from patients can be emotionally difficult. A documented financial policy provides a clear escalation process to settle an outstanding debt. It will help guide both your staff and the patient through their options to meet their obligation despite challenging circumstances.
In times of stress, a standard procedure is your best friend. Coach your team on how to communicate with empathy yet remain disciplined to the process you set in place.
Leave a Reply