Collections Strategies for Medical Practices to Better Manage Cash Flow
July 06, 2014
In the Medical Economics article published 6/24/2014, Lisa Zamosky summarizes how many factors, primarily the economic downturn and higher deductibles, have made patients more aware of medical costs. In addition to the growth of high-deductible plans, there are millions of new insureds entering the insurance market via the Affordable Care Act (ACA), thus patient out-of-pocket costs are very high compared to past health plans. Thus, medical practices are having a harder time collecting payments. And as proof of medical practices’ cash flow difficulties, anMGMA survey even found that bad debts increased by 14% between 2008 and 2012.
What are the next steps for medical practices? Below are collections strategies detailed in the article to improve collections processes and provide financial tools to patients.
- Establish transparent financial policies by requiring the following before each appointment:
- Confirm insurance eligibility
- Bring form of payment to appointment
- Communicate financial policies (including additional costs) clearly to patients
- Educate your Patients
- Help patients better understand their insurance policies
- Offer Easy Payment Options
- Provide as many payment options as possible
- Take advantage of Technology
- Offer “specials” to incentivize patients to pay
- Refuse Patients that do not pay, but use caution
- Terminate or refer patient to other providers, but clearly define policy and make sure all employees understand all scenarios
- Reduce Outstanding Balances
- Pursue payment quicker
- Review all options to help patients pay
View the entire article at Medical Economics:
http://medicaleconomics.modernmedicine.com/medical-economics/news/5-tips-improve-your-practices-financial-management