Today's patients are looking for consumer-centric ways to pay for healthcare, including flexible financing options.
In this environment, providers are encouraged to offer multiple payment options, provide greater transparency and integrate financial conversations with patients into workflows.
In a CareCredit-sponsored virtual session at Becker's 6th Annual Health IT + Revenue Cyle, Shannon Burke, Senior Vice President and General Manager of Health Systems at Synchrony Financial’s Health and Wellness Platform, and Jan Oldenburg, Principal at Participatory Health, discussed improving the patient payment experience.
Four key takeaways:
1.) The pandemic has highlighted patient expectations for greater flexibility in receiving and paying for care. The pandemic was a game-changer, enabling patients to connect with providers in new technology-driven ways, like telemedicine and online. Patients like this flexibility and expect providers to continue it.
The pandemic also led to greater flexibility regarding payment. Sixty percent of providers relaxed collection efforts, and many providers are offering electronic payment (83 percent), payment plans (68 percent), patient financial solutions (68 percent) and payment flexibility (71 percent).1
"These represent significant changes in the way healthcare providers are dealing with issues around payment forced on them by the pandemic," Ms. Oldenburg said.
2.) Patients want more payment options. Only 33 percent2 of younger patients are happy with the current payment options, which explains why patients are embracing digital payment options. Almost half of patients have used a digital or person-to-person app to pay for healthcare. In response, more providers are offering options such as digital payment, person-to-person payment, health savings accounts, dedicated healthcare credit cards — like CareCredit, which has almost 12 million cardholders — and flexible financing options.
Patients are also embracing payment plans, as more than 50 percent3 ages 18-54 have used payment plans to pay for healthcare. Ms. Oldenburg said consumers' attitudes toward payment are "fueled by the rise in the patient share of cost we've been seeing over the past 10 years; people need more options to pay." Managing in -house payment plans may not be best option with recent staffing shortages. Many hospitals are looking at using flexible financing programs in place of in house financing since it’s administered by a 3rd party.
3.) Financing options improve the experience for both patients and providers. For patients, financing options allow receiving care without delay and making payments over time, which improve patients' experience. "Offering financing absolutely makes a difference in satisfaction and the patient experience," Ms. Burke observed. "Patients think of their billing experience as part of their overall healthcare experience."
For providers, financing can increase cash flow, reduce time spent on collections and improve patient and staff satisfaction and retention. Common types of financing are in-house, third-party recourse and third-party non-recourse.
4.) Financial conversations are vital to helping patients feel informed and reducing unexpected bills. When providers engage in effective financial conversations with patients, it increases transparency and engenders trust. Currently, most financial conversations are held before treatment, with fewer conversations at the point of care or after treatment. While most staff members are comfortable discussing credit card payment with patients, fewer than 40 percent of staff are comfortable talking about financing or digital payments4. The good news is that conversations about payment are happening, yet challenges persist.
Providers can improve financial conversations by making these conversations an integrated part of the organization's clinical workflow, increasing transparency, and training staff on pricing, billing, financing options and conversational techniques that put patients at ease. Better financial conversations will help patients feel more informed and reduce unexpected medical bills.
To learn more about the event, click here.
Souces:
1HFMA, “Consumerism amidst COVID-19,” October 2020 *Based on self-reported statements, among surveyed U.S. healthcare executives
2 CWH Advisors PatientPay, January 2021 *Based on self-reported statements, among surveyed U.S. adults
3CWH Advisors PatientPay, January 2021*Based on self-reported statements, among surveyed U.S. adults
4Becker’s, “Financial Conversations at the Point of Care,” Dec. 2020 *Based on self-reported statements, among surveyed healthcare executives