How patient education can improve your medical practice revenue
When you buy something in a retail store, restaurant, or almost any type of business, you typically know in advance what you’ll pay. That’s because prices are clearly marked on a menu, sign, or price tag on the item itself. However, this isn’t the case in healthcare. Patients often don’t know what a particular procedure or service will cost them until long after they’ve left your medical practice. The billing aspect of healthcare continues to cause mass confusion among today’s cost-conscious consumers, many of whom don’t pay their medical bills because of it. This trend of unpaid medical bills has led the Centers for Disease Control and Prevention to release a report citing the problem as a public health concern.
Patient-centric billing to the rescue
That’s where patient education can help. In an era of price transparency, there are many ways in which today’s medical practices can leverage technology and novel workflows to educate healthcare consumers about what they owe and why, thereby reducing bad debt and preventing aging accounts receivable. Here are seven strategies to consider:
1. Invest in price estimation tools. These tools are particularly helpful when they offer meaningful information like the cost of care after insurance is applied. Out-of-pocket cost estimates help patients plan in advance financially, so your medical practice isn’t caught chasing revenue (i.e., unpaid patient balances) retrospectively.
2. Acquaint patients with your medical bills. For example, it may be helpful to provide patients with a sample medical bill as part of your intake paperwork. This sample should include a brief explanation of each section of the medical bill and why it’s important. You can also send a copy of the sample bill to the patient through the patient portal for easy reference. When it’s time to pay, patients can cross-reference the actual medical bill with the sample one to clear up any confusion.
3. Create a glossary of billing and insurance terms. This is a great way to provide patients with an evergreen resource that helps eliminate confusion. Post this glossary on your medical practice website or include it in the patient portal. Be sure to update it as new questions arise or as regulations change. Here’s an example of a glossary published by the Mayo Clinic as well as one published by UW Medicine that you can use as models for your own as part of your medical practice-specific patient-centered billing strategy.
4. Invest in front-desk staff training. Front desk staff are your first line of defense when it comes to patient questions about their medical bill. At a minimum, staff should be able to answer basic questions about medical billing terminology and concepts. For example, they should be able to provide patients with the CPT and ICD-10-CM codes the medical practice used to bill the encounter. They should also be able to explain concepts like deductible vs. copayment vs. co-insurance and how different types of coverage, such as Medicare, private health insurance, workers' compensation and/or auto insurance, interact to pay for care.
5. Identify a point of contact for medical billing-related inquiries. Be sure this person—or team of people—has substantial customer service training focused on communication, active listening, and empathy. That’s in addition to any training they receive on the nuances of revenue cycle management, how to address a medical billing error, and what to do if a patient disputes a medical billing charge.
6. Consider hiring a patient navigator. Earning an average of about $55,000 annually according to salary.com, this employee helps medical practices with a patient-centric revenue cycle to improve patient financial health literacy by explaining medical bills and walking patients through the payment process.
7. Involve clinicians. Although physicians and other clinical staff justifiably focus on providing high-quality clinical care, it may also be beneficial for these individuals to engage with patients on a financial level as well—specifically around the cost of medications. A 2019 study published in the Annals of Internal Medicine found that with training, clinicians and other members of the clinical team can engage in this way. However, the study concluded that more research is needed to assess the impact of these types of conversations on patient costs and medication adherence.
Looking ahead
When thinking about short- and long-term revenue cycle management best practices, patient education and a patient-centric revenue cycle must be part of the conversation. The complexity of the U.S. healthcare system cannot be ignored. Medical practices will continue to struggle with unpaid patient balances, aging accounts receivable, and delayed cashflow unless they learn to embrace innovative ways to leverage technology to improve patient communication and engagement. Learn how edgeMED can help and be sure to check the Healthy Snacks blog for more expert insights, best practices and industry trends.
