Tackle your back-end patient collection process with these 5 strategies
One of the biggest challenges in running an efficient revenue cycle? Back-end patient collections. We’re talking about the amount patients owe after insurance companies process the claim—and long after patients have left your medical practice. Given the prevalence of high deductible health plans, the patient financial responsibility is often quite significant, and many people struggle to cover all or even a portion of it. Half of working-age adults say it’s very or somewhat difficult to afford their healthcare costs, according to a recent survey. This is one of many reasons why back-end patient collections are tricky.
Still, you run a business and need to get paid so you can continue to provide high-quality patient care. This means back-end patient collections must be a priority. If your medical practice struggles with aging patient accounts receivable, this article is for you.
Best practices for patient collections
Here are four best practices for patient collections that can boost revenue and improve cashflow:
1. Focus on point-of-service collections. Yes, you read that correctly. This article is about the back-end patient collection process, but our first strategy occurs at the front end. That’s because your aging patient accounts receivable directly reflects the efficiency of your front-end processes. With that said, requiring up-front payments is a balancing act that requires you to consider your medical practice’s brand and mission in the community, financial goals, patient mix, and other factors. Ultimately, your relationship with patients is most important—and you don’t want to come across as insensitive, demanding, or uncaring. Engaging in financial conversations with patients as early in the process as possible is helpful. The most successful conversations occur at the time of scheduling when you can collect accurate demographic and insurance information, leverage eligibility and benefit verification and provide transparent prices. Let patients know you expect all or a portion of payment at the time of service.
2. Offer financial assistance, when needed. Whether it’s at the time of service or part of the back-end collection process, financial assistance programs (e.g., payment plans, charity care, or third-party financing through national companies or local banks and lenders) are paramount. Technology can help. For example, it’s possible to leverage credit card data to understand a patient’s financial situation and then direct them toward a payment plan or financial assistance depending on their balance owed and propensity to pay.
3. Provide financial counseling. Revenue cycle automation plays a big role in this. That’s because as you automate certain parts of the revenue cycle, you’re able to re-allocate revenue cycle staff to new tasks, one of which is patient financial counseling. A financial counselor’s purpose is to explain the patient financial responsibility and help patients navigate the financial aspect of their care. This includes helping them understand payment options and structuring payments to fit each patient’s unique financial circumstances. Not surprisingly, individuals with medical debt are much more financially vulnerable across a range of financial measures, a recent study found. It’s important to keep this in mind as counselors partner with patients to find solutions that work for their budget. Again, providing this counseling on the front-end of the revenue cycle can greatly assist with the back-end patient collection process.
4. Train staff in empathic communication. The back-end patient collection process is highly nuanced, requiring in-depth knowledge of how to build rapport, listen actively, and respond respectfully. It also requires the ability to explain complicated bills that patients may not have anticipated. Thirty-percent of consumers receive medical bills they don’t even expect. Being able to communicate in the patient’s native language is also important.
5. Use patient portals to increase patient financial engagement. Self-service options (e.g., online bill pay and patient portals) are paramount in terms of improving the back-end collection process. Make it as easy as possible for patients to pay any balances owed. The more barriers exist, the harder it is to collect.
Conclusion
Back-end patient collections can be challenging, especially when so many people are unemployed or underemployed. However, it’s a challenge worth tackling if you want to promote financial sustainability in your medical practice. Learn how edgeMED can help and be sure to check the Healthy Snacks blog for more expert insights, best practices and industry trends.
