Approximately 70 percent of hospitals and health systems collect less than 30 percent of their payments at the point of service, according to a TransUnion Healthcare survey.
The survey polled more than 300 attendees of the Healthcare Financial Management Association's Annual National Institute Conference. Respondents said the two biggest challenges for collecting payments at the point of service are determining what is owed and training staff to ask for the payments.
Other highlights of the survey include the following:
In your opinion, what is the biggest challenge for patients when it comes to paying at the point of service?
• Patients are unprepared to make the payment: 36.79 percent
• Patients are uneducated on the option to pay at time of service: 25.47 percent
• Patient can't afford to pay at the time of service: 21.38 percent
• Patients are unwilling to make the payment: 16.35 percent
Of payments that go into back-end collections, what is the approximate recover rate at your hospital?
• Between 15 and 30 percent: 29.17 percent
• Between 0 and 15 percent: 22.76 percent
• Between 30 and 45 percent: 17.31 percent
• Not sure: 11.22 percent
• Between 45 and 60 percent: 9.29 percent
• Between 60 and 75 percent: 7.05 percent
• Between 75 and 90 percent: 2.24 percent
• More than 90 percent: 0.96 percent
In your opinion, how much of your net revenue in 2010 was lost to bad debt?
• Between 3 and 5 percent: 30.19 percent
• Between 1 and 3 percent: 26.73 percent
• Between 5 and 7 percent: 16.67 percent
• More than 7 percent: 16.35 percent
• Not sure: 6.6 percent
• Less than 1 percent: 3.46 percent
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The survey polled more than 300 attendees of the Healthcare Financial Management Association's Annual National Institute Conference. Respondents said the two biggest challenges for collecting payments at the point of service are determining what is owed and training staff to ask for the payments.
Other highlights of the survey include the following:
In your opinion, what is the biggest challenge for patients when it comes to paying at the point of service?
• Patients are unprepared to make the payment: 36.79 percent
• Patients are uneducated on the option to pay at time of service: 25.47 percent
• Patient can't afford to pay at the time of service: 21.38 percent
• Patients are unwilling to make the payment: 16.35 percent
Of payments that go into back-end collections, what is the approximate recover rate at your hospital?
• Between 15 and 30 percent: 29.17 percent
• Between 0 and 15 percent: 22.76 percent
• Between 30 and 45 percent: 17.31 percent
• Not sure: 11.22 percent
• Between 45 and 60 percent: 9.29 percent
• Between 60 and 75 percent: 7.05 percent
• Between 75 and 90 percent: 2.24 percent
• More than 90 percent: 0.96 percent
In your opinion, how much of your net revenue in 2010 was lost to bad debt?
• Between 3 and 5 percent: 30.19 percent
• Between 1 and 3 percent: 26.73 percent
• Between 5 and 7 percent: 16.67 percent
• More than 7 percent: 16.35 percent
• Not sure: 6.6 percent
• Less than 1 percent: 3.46 percent
Related Articles on Hospital Collections:
5 Top Ways Hospitals Lose Accounts Receivable5 Ways to Improve Patient Collections in Hospitals
Five Tips on Point-of-Service Collections