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Providers Work To Increase Patient Payments By Improving RCM Operations

Posted on June 29, 2017 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she's served as editor in chief of several healthcare B2B sites.

A growing body of research on healthcare payment trends is underscoring a painful fact: that consumers are footing a steadily growing share of their medical bills, and sometimes failing to pay. In response, providers are upgrading their revenue cycle management systems and tightening up their collections processes.

A new analysis by payment services vendor InstaMed has concluded that consumer spending on healthcare services should grow to $608 billion by 2019. This is a fairly substantial number even given the high volume of U.S. healthcare spending, which hit $3.4 trillion in 2016.

The growth in patient spending has been fueled by the emergence of high-deductible health plans, which are saddling consumers with increasingly large financial obligations. According to CMS figures cited in the report, the average deductible for covered workers with single coverage has doubled over the past several years, from $735 in 2010 to $1.487 in 2016.

But despite the increasing importance of consumers as healthcare payers, providers don’t seem to be doing enough to inform them about costs. More than 90% of consumers would like to know what the payment responsibility is prior to a provider visit, but they often don’t find out what they owe until they get a bill. What makes things worse is that very few consumers (7%) even know what a deductible, co-insurance and out-of-pocket maximum are, so they’re ill-prepared to understand bills when they receive them, studies have found.

Providers are waiting longer to collect what they are owed by patients, with three-quarters waiting a month or longer to collect outstanding balances from patients. And problems with collecting patient accounts are getting worse over time.  In fact, a new study from TransUnion Healthcare found that about 68% of patients with bills of $500 or less didn’t pay off the full balance during 2016, up from 49% in 2014.

Meanwhile, patient financial responsibility for care has risen from 10% to 30% of costs over the last few years, with more increases likely. This has led to expanding levels of consumer bad debt for medical expenses.

In attempt to cope with these issues, providers are buying new revenue cycle management systems. A survey released last year by Black Book Research, which included 5,000 management and user-level RCM clients, found that many healthcare organizations are rethinking RCM technology and demanding better performance.

Forty-eight percent of responding CFOs told Black Book that they weren’t sure they had the budget they needed to upgrade to an end-to-end RCM system this year.  Nonetheless, 93% of CFOs said they planned to eliminate RCM vendors, financial and coding technology firms, that are not producing a return on investment, up from 79% with similar plans in Q4 2015.

In addition to investing in newer RCM technology, providers are making it easier for patients to pay via whatever medium they choose. Not only are providers issuing bill reminders via text, and accepting payments online and by phone, they’re also adding new channels like PayPal payments, bank transfers and mobile payments.

E-Patient Update:  You Need Our Help

Posted on January 20, 2017 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she's served as editor in chief of several healthcare B2B sites.

I just read the results of a survey by Black Book Research suggesting that many typical consumers don’t trust, like or understand health IT.

The survey, which reached out to 12,090 adult consumers in September 2016, found that 57% of those interacting with health IT at hospitals or medical practices were skeptical of its benefit. Worse, 87% said they weren’t willing to share all of their information.

Up to 70% of consumers reported that they distrusted patient portals, medical apps and EMRs. Meanwhile, while many respondents said they were interested in using health trackers, 94% said that their physicians weren’t willing or able to synch wearables data with their EMR.

On the surface, these stats are discouraging. At a minimum, they suggest that getting patients and doctors on the same page about health IT continues to be an uphill battle. But there’s a powerful tactic providers can use which – to my knowledge – hasn’t been tried with consumers.

Introducing the consumer health IT champion

As you probably know, many providers have recruited physician or nurse “champions” to help their peers understand and adjust to EMRs. I’m sure this tactic hasn’t worked perfectly for everyone who’s tried it, but it seems to have an impact. And why not? Most people are far more comfortable learning something new from someone who understands their work and shares their concerns.

The thing is, few if any providers are taking the same approach in rolling out consumer health IT. But they certainly could. I’d bet that there’s at least a few patients in every population who like, use and understand consumer health technologies, as well as having at least a sense of why providers are adopting back-end technology like EMRs. And we know how to get Great-Aunt Mildred to consider wearing a FitBit or entering data into a portal.

So why not make us your health IT champions? After all, if you asked me to, say, hold a patient workshop explaining how I use these tools in my life, and why they matter, I’d jump at the chance. E-patients like myself are by our nature evangelists, and we’re happy to share our excitement if you give us a chance. Maybe you’d need to offer some HIT power users a stipend or a gift card, but I doubt it would take much to get one of us to share our interests.

It’s worth the effort

Of course, most people who read this will probably flinch a bit, as taking this on might seem like a big hassle. But consider the following:

  • Finding such people shouldn’t be too tough. For example, I talk about wearables, mobile health options and connected health often with my PCP, and my enthusiasm for them is a little hard to miss. I doubt I’m alone in this respect.
  • All it would take to get started is to get a few of us on board. Yes, providers may have to market such events to patients, offer them coffee and snacks when they attend, and perhaps spend time evaluating the results on the back end. But we’re not talking major investments here.
  • You can’t afford to have patients fear or reject IT categorically. As value-based care becomes the standard, you’ll need their cooperation to meet your goals, and that will almost certainly include access to patient-generated data from mobile apps and wearables. People like me can address their fears and demonstrate the benefits of these technologies without making them defensive.

I hope hospitals and medical practices take advantage of people like me soon. We’re waiting in the wings, and we truly want to see the public support health IT. Let’s work together!