Before the COVID-19 pandemic, patient collections were already crucial for the financial health of hospitals and health systems due to their proportion of total collections. But volume reduction from the public health crisis has only increased their importance in 2020.
During an Oct. 1 webinar hosted by Becker's Hospital Review and sponsored by iVita Financial, presenters discussed patient collection trends and shared strategies healthcare organizations are using to boost collections throughout the revenue cycle.
Presenters were:
- Trish Rivard, CEO and founder of Eliciting Insights
- Chris Cox, vice president of product and strategy at iVita Financial
- Greg Falconer, president and general manager of iVita Financial
Six takeaways:
1. Limitations on elective surgeries are the top negative effect to revenue in 2020 from the pandemic, according to an Eliciting Insights study of about 100 hospitals. The study found 83 percent of survey respondents said these limitations are the top negative effect to revenue this year. Additionally, 84 percent reported a reduction in patient cash collections during the pandemic. "While hospitals are seeing a reduction in revenue, at the same time they're struggling to collect from patients when now more than ever they need to collect from patients," noted Ms. Rivard.
2. Most hospitals changed patient collection strategies in the beginning of the pandemic, the Eliciting Insights survey found. Changes include allowing patients to take one or more months off from their payment plan, delaying bad debt placements and offering more financial assistance to patients.
3. Hospitals use various programs to collect from patients, such as payment plans, online patient portals, prompt pay discounts and propensity to pay scoring. Those responding to the Eliciting Insights survey chose payment plans as the top utilized program both preservice and post-service.
4. Hospitals have a wide array of initiatives planned to improve collections over the next 12 to 18 months. Many plan to implement pre- and day-of-service estimates given CMS' price transparency requirements that are slated to take effect in January, according to the Eliciting Insights survey. Other programs such as loans, propensity to pay, omni-channel communication and staff incentives are also on hospitals' radar.
5. Patient financing tools continue to change and include recourse lending and nonrecourse lending. While recourse lending gives the account balance back to the hospital if a patient defaults, nonrecourse lending, which is offered by iVita Financial, puts the responsibility on the lender, not the hospital, if the patient defaults, said Mr. Cox. Overall, he said, patients' willingness to pay for healthcare is powerful, and "the onus is on us [in healthcare] to provide patients with simple, easy-to-use tools to help manage their obligations."
6. Hospitals should use multiple programs for success in patient collections, according to Mr. Falconer. "There just doesn't appear to be any single prevailing program or approach that drives higher collection yields in itself," he said. "And the use of multiple programs working in conjunction with one another tends to yield the better overall performance."
Learn more about iVita Financial here. Listen to the webinar recording here.
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