More and more these days I’m fascinated by the practical innovations that can impact healthcare much more than the moonshot ideas which are great ideas but never actually impact healthcare. I’ve quickly come to believe that the way to transform healthcare his through hundreds of little innovations that will allow us to reach a transformative future.
I saw an example of this when I talked with PatientMatters. They work in a section of healthcare that many don’t consider sexy: revenue cycle management. However, I often say, the financial side of healthcare isn’t sexy, unless you care about money. Given how healthcare is getting pressed from every angle, every hospital I know is interested in the financial side of the equation.
PatientMatters is doing a number of things that are interesting when it comes to a patient’s financial experience in a hospital. They offer a great mix of tools, training, process design, automation and coaching to reframe a patient’s financial experience. This is a trend I’m seeing in more and more healthcare IT companies. It takes much more than technology to really change the experience.
That said, I was most intrigued by how PatientMatters offers unique payment plans to patients based on a wide variety of factors including current credit information, payment history for current financial obligations, and their residual income. From this information PatientMatters does an assessment of a patient’s ability to pay based on these five categories:
- Guarantors that generate this designation are the most likely to pay their full obligation. This population predictably pays their full balance more than 94% of the time. Recognizing these guarantors provides key savings to the hospital:
- Because these guarantors are most likely to meet their obligation, conversations with the registration staff regarding payment are brief and concise.
- Recognizing the high likelihood of guarantor payment performance, many hospitals elect to keep these accounts in-house and not refer to their early out vendors. This generates vendor savings for the hospital.
- These guarantors also have a high collections success rate, but they may need more time and slightly reduced payment plans to meet their obligation. Using data analytics to understand the guarantor allows the hospital to structure a custom payment plan with a high likelihood of performance.
- Guarantors in this category require a higher degree of attention from the registration team. This group struggles to meet their financial responsibilities. A hospital that spends the extra time working with the guarantor on a highly structured payment plan will see collection improvements with this population.
- These guarantors fall into two categories; a) a low likelihood of meeting their financial commitment or b) guarantor may meet hospital charity program, based on their FPL status. Scripting will help the registration assess the guarantor and identify the best solution.
- These guarantors will likely be unable to meet their hospital obligation. Many times these individuals will qualify for the hospital charity, Medicaid, County Indigent or other assistance programs.
It’s not hard to see how this more personalized approach to a patient’s financial experience makes a big difference when it comes to collections, patient satisfaction, etc. However, what I loved most about this approach was how simple it was to understand and process. It’s worth remembering that a hospital’s registration staff are generally one of the lowest paid, highest turnover positions in any hospital. So, simplicity is key.
I love seeing practical, innovative solutions like the one PatientMatters offers hospitals. They make a big difference on a hospital’s bottom line. However, they also create a much better experience for the patients who mostly want to get through the billing process and on to their care. How are you customizing the financial experience for your patients?