How to redesign your patient billing statement to promote faster payment
When was the last time you received a medical bill and had no idea what it was for? Unfortunately, this happens more frequently than you would think. Why? Physicians and staff don’t take the time to look at their patient billing statements from the patient’s perspective. If they did, they might realize that even the most basic details are missing. When this happens, patients may be confused and even skeptical. The result? Patient collections challenges—particularly nonpayment. Or, at best, delayed payment until after patients call your office to ask questions.
Why it’s important to redesign patient statements in medical billing
The good news is that you can take proactive steps to redesign your patient billing statement so patients clearly understand what they owe and why. Here are five reasons to focus on patient friendly billing® in your medical practice:
Build patient trust. This is especially important in an era of price transparency to help patients understand healthcare costs.
Enhance staff efficiency. When patients understand their medical bills, your staff spend less time answering questions and more time on patient care.
Improve patient satisfaction. Clear and concise medical bills improve the overall patient experience.
Reduce patient accounts receivable. When patients understand their medical bills, they pay them in a timely manner. This helps with back-end patient collections.
Avoid noncompliance with the No Surprises Act. Confusing and inaccurate medical bills may lead patients to file complaints with CMS and other payers.
Five tips for patient-friendly billing statements
Want to improve your patient billing statement template but not sure where to begin? Consider these five simple tips to create a patient-friendly billing statement:
1. Remember the five W’s (i.e., who, what, where, when, and why). Ensure your patient billing statement includes the following:
Cost of each service and/or supply. This includes the full price, allowed amount, any adjustments, insurance payment, and amount due from the patient.
Date of service.
Name of the provider who rendered the healthcare service.
Patient’s name, date of birth, address, insurance information, and medical practice account number.
Total amount due from the patient and within what time period.
What healthcare service(s) and/or item(s) the patient received, including a brief description of that service or item and relevant medical code. Avoid abbreviations and complex medical terms.
Where the patient received those healthcare services, including the medical practice name, location, phone number, website, and office hours.
2. Let patients know how they can pay. If your medical practice permits online bill payment, be sure to provide a scannable QR code or URL for direct access. If not, provide clear instructions for where patients can send payment or apply for financial assistance. Thank them in advance for paying promptly. On your patient billing statement template, be sure to let them know you appreciate their business.
3. Get creative. Use a variety of fonts, colors, and bold section headers on your patient billing statement template to make important information stand out. Boxes and colored shapes may also be helpful. However, don’t overcrowd the statement. Ensure there’s a balance of white space and need-to-know information.
4. Provide instructions for how patients can ask questions. Even despite your best efforts to provide a patient-friendly billing statement, questions may still arise. Or in some cases, there may even be an error. Well-intentioned billing teams make mistakes. The goal isn’t to be perfect. It’s to correct errors, learn from mistakes, and do better going forward. Make it easy for patients to contact your medical practice by providing a phone number or email address. Let them know you want to help them understand their medical bill.
5. Seek staff and patient input. The best resources for other ways to improve your patient billing statements? Staff and patients. Ask revenue cycle staff for ideas based on common questions they receive from patients. Ask patients for ideas based on frequent sources of confusion. Then put all of this information together as you revamp your billing statement.
Looking ahead
As medical practices look for ways to decrease patient aging A/R and improve overall patient satisfaction, taking a deeper dive into the revenue cycle—particularly patient billing statements—makes sense. Promoting patient-friendly billing statements should be part of your overall strategy to improve financial performance. Learn how edgeMED can help and be sure to check the Healthy Snacks blog for more expert insights, best practices and industry trends.
