As prices continue to skyrocket around the world, many people are feeling the pinch of inflation. These economic issues should be of special concern to private practices as many Americans opt for high-deductible healthcare plans in order to ease their financial burdens. According to a recent study by Benefitfocus, 34% of Americans chose high-deductible plans from their employers. This means that patients are responsible for paying more of their medical bills out-of-pocket than ever before at a time when more and more people are feeling strapped for cash.
Underinsured patients can eventually lead to high amounts of debt and limited cash flow for private practices that are struggling to collect unpaid bills. This could wreak havoc on the day-to-day operations of your practice and can lead to staffing and customer service issues. While the situation is certainly cause for concern, there are a few things that private practices can do to increase the amount of money that they collect.
One of the best things that private practices can do is find ways to make it easier for patients to pay. This could mean providing transparent pricing for patients to eliminate unpleasant surprises, setting up low or no-interest loan options or payment plans using automated software, educating patients on how to pay, and adopting a financial clearance policy. This financial clearance policy is used to ensure that patients are able to pay either through insurance or by cash payments before they arrive for an exam or outpatient procedure. If a patient does not have access to the appropriate funds, alternative resources such as community or charity sponsorships, payment plans, and loan options.
Collecting as much of the balance as possible at the time of service can also greatly increase the amount of money that you are able to collect and can reduce operational costs associated with medical debt. Collecting money upfront helps you cover the normal cost of running your practice and it also reduces the staffing needed to follow up on future payments. Make sure that your staff double-checks all insurance details at the time of service and that they have access to information regarding deductibles, co-payments, and past-due amounts before a patient arrives for their appointment.
Another very important thing that private practices should do is focus on the efficiency of their existing revenue cycle management. Revenue cycle management refers to the entire lifecycle of a patient account from intake to their final payment. Reducing the amount of time that it takes to bill a patient and receive payment for your services is crucial when it comes to managing your cash flow. This means using certified coders and billing professionals who can ensure that everything is processed properly which reduces the risk of claims being denied by insurance companies.
How can Orchard Medical Management help?
Companies like Orchard Medical Management can help you manage your administrative, revenue management, and HR tasks to allow you to dedicate your time to providing excellent service for your patients. Give us a call today to find out how we can help you optimize your revenue management cycle and reduce the burden of unpaid medical bills.