For most ASCs around the country, 50% of all patient financial responsibility goes uncollected following a procedure1. While several factors contribute to unpaid patient bills, there are simple steps that surgery centers can take to increase payment rates while also improving patient experience. It all starts with procedure price transparency.
FINANCIAL BENEFITS OF PRICE TRANSPARENCY
Unlike nearly every other industry, most healthcare providers do not make a regular practice of communicating estimated costs prior to providing service. This phenomenon isn’t just an inconvenience to patients, it also has a direct impact on ASC revenue:
- 92% of patients want to know their payment responsibility prior to a visit2
- 65% of patients say they would make a partial payment at the time of care if they had a price estimate beforehand3
- 30% of delayed medical payments are due to patient uncertainty surrounding insurance coverage vs. their responsibility4
By making a small adjustment in communicating patient responsibility, surgery centers can drastically improve payment rates, and better maintain their revenue cycle. This shift can also help reduce the time and resources that staff spend following up on unpaid balances from patients.
IMPACTS ON PATIENT EXPERIENCE
Procedure price transparency can also improve the patient experience, which itself can impact your center’s revenue cycle in several ways:
- Patients who have a better experience are more likely to return to your center or refer a loved one for future procedures
- Higher patient satisfaction can enhance claims reimbursements in many cases
- 65% of patients would consider switching providers for a better payment experience5
While caring for patients is a top priority for all surgery centers, considering how payments impact that mission is often overlooked. Solving this problem reduces the stress and anxiety that patients can feel going into a procedure without knowing how much it will cost them, and can set your ASC apart from competitors as a better choice for patients.
It’s important to note that being transparent about costs alone won’t solve for the increasing cost of care to patients. That’s why a policy like this should be paired with a patient financing solution to empower patients to pursue the care that they need, and help you maintain your revenue cycle. To learn more about the benefits of patient financing, click here.
“The Patient is the New Payer” by Jonathan Wiik1. InstaMed Trends in Healthcare Payments Report2. TransUnion Healthcare Survey3. CollectRX whitepaper “Developing a Payor Collections Strategy”4, 5.