subject: Understanding and Managing Patient Financial Responsibility [print this page] Consumer-directed healthcare (CDH) products like high deductible plans, healthcare savings accounts and flexible spending accounts have become more popular by insurers and employers as a way to control costs and increase access to health insurance. This has resulted in an increase in patients' out-of-pocket expenses. In turn, physician practices now face the new challenge of balancing quality care delivery with managing accounts receivable and collecting revenue from patients.
NaviNet has just published a white paper on patient financial responsibility titled Collecting from patients at time of care: Understanding the challenges and solutions.
Here are some key statistics on patient financial responsibility from the white paper:
* According to the McKinsey & Co. report, "Overhauling the US health care payment system," the probability of providers collecting patient payment declines dramatically once the patient walks out the office door. The report states that while a provider generally collects 95 percent of patient payment when it is received prior to treatment, that percentage falls to 18 percent of the full payment if collected just one month post visit.
* McKinsey & Co. suggests that by the end of 2010, about 35 percent of a provider's total revenue will come from patients.
* A recent NaviNet survey of provider offices indicated that many offices are not prepared for the changes in patient financial responsibility due to an increase in CDH. Of the NaviNet offices surveyed, over 25 percent did not have a process in place to collect payment, other than copayment, at the time of service.
* 64 percent of respondents indicated they are experiencing a rise in patient-based bad debt.
* The majority surveyed indicated more than a 10 percent increase in patient-based bad debt from previous years.
* According to the Centers for Medicare and Medicaid Services, between the years 2000 through 2007, patient out-of-pocket expenses increased by 95 percent.
What can healthcare providers do to successfully manage patient financial responsibility? Click on over to Physicians Practice and read the white paper to find out.
Sincerely,
Peggy Denness
Director of Provider Advocacy
Understanding and Managing Patient Financial Responsibility
By: NaviNet Inc
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