The 3 biggest self-pay mistakes hospitals make
Implementing a self-pay revenue cycle strategy is probably one of the biggest challenges facing hospital financial executives. As healthcare providers are more focused than ever before on increasing revenue, this issue has become that much more important to a successful overall revenue cycle strategy.
Yet, many senior hospital executives are trying to meet this challenge with obsolete tools and the wrong mindset. Here are the three biggest mistakes hospitals make that prevent them from effectively managing their self-pay receivable.
1) Not viewing the hospital-patient relationship correctly.
Hospitals have been talking about patient-centric care for decades. Hospitals have redesigned lobbies and patient rooms and worked hard at establishing a caring environment for patients and their families. However, most hospital revenue cycle operations still appear to be focused mostly on their Medicare and commercial insurance patients. Hospitals also seem to be providing more financial counseling for patients who are most clearly unable to meet their financial obligation to the hospital. Yet, while hospital financial executives are aware that “consumer driven” healthcare has created a large and growing group of patients with high deductibles and copays, many have been very slow to recognize the challenge they face in terms of the revenue cycle.
After decades of working with patients, we know that patients are very concerned about their financial responsibilities to healthcare providers. This concern needs to be addressed by revenue cycle professionals if the patient-centric culture is going to promoted and advanced by the larger organization. The traditional approach of sending statements, waiting for payments and telephone calls and then, after 180 days, sending the remaining accounts to a collection agency doesn’t work. What’s more, in today’s hyper-connected world, this approach can have an outsized negative effect on a hospital’s brand. Hospitals need to proactively engage their patients with self-pay balances.
2) Not providing patients with multiple avenues for payment.
In this day and age, it is absolutely essential for hospitals to offer patients multiple avenues for payment. As a first step, it is critical for a hospital to provide patients with an online payment option and a 24-hour payment by telephone option. In our experience working with hospitals on the East Coast, a very significant portion of a hospital’s patients with self-pay balances want to pay their bills when it’s convenient to them. Hospitals need to deploy the available POS technologies to expedite payment and improve the patient experience. Hospitals need to leave the 1990s behind and provide patients with a 21st Century retail experience.
3) Not returning patient phone calls.