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Create a strategy for patient collections

Published: July 30, 2018 by Experian Health

Between 2015 and 2017, patients’ direct responsibility for their healthcare payments grew by 29.4 percent, according to a study by Black Book. On average, that left each patient with more than $6,200 in deductible and out-of-pocket expenses for the year.

But patients aren’t the only ones who have had to grapple with these changes; the shift has changed hospitals’ revenue models as well. In the same Black Book study, 92 percent of hospitals reported having trouble with collections using traditional solutions. The choice that many hospitals face is to either write off losses on late payments or pay exorbitant fees for collections agencies to pursue them all.

Neither option is ideal, and for some healthcare providers, neither one is possible. Fortunately, there’s a third option that doesn’t involve pursuing all delinquent accounts — just the ones that are worth the effort.

How Experian Health optimizes collections for you

Experian Health’s Collections Optimization Manager is designed to help your organization sort out which patients are able and willing to pay from the ones who can’t or won’t pay. That helps you streamline the collections process and stabilize your revenue cycle. Experian Health’s collections software does this in three important ways:

1. Segmenting patients by likelihood of recovery

The first step in streamlining your collections process is to identify which patients will actually pay their bills. Experian Health’s Collections Optimization Manager segments your patient population according to each patient’s ability to pay, taking into account his or her unique financial situation and health coverage information.

2. Directing patients to the appropriate personnel

Some accounts can be outsourced to a collections agency, while others should be directed to a financial assistance program. Using the Collections Optimization Manager to analyze your patient population helps reduce the cost of collections by showing you which type of personnel can best help each patient.

3. Keeping updated data on payment benchmarks

The Collections OptimizationManager isn’t a one-time solution; it’s a dynamic system that continuously monitors each patient’s successful or missed payments. This data is immediately aggregated in the collections manager and kept up-to-date, ensuring healthcare providers have a real-time picture of a patient’s financial situation.

Optimized collections in action

Healthcare’s patient-dependent revenue cycle is forcing hospitals and other healthcare providers to change their collections strategies. By using Experian Health’s collections software in tandem with our other revenue cycle management solutions, you can reinvent your entire billing and collections process. It not only boosts your revenue, but also helps you provide patients with more personalized, compassionate financial options.

For example, after Altru Health Systems, a healthcare provider in North Dakota, implemented Experian Health’s Collections Optimization Manager, it identified 4,000 accounts that were eligible for nearly $2.7 million in assistance. This helped customers in need and boosted Altru’s successful rate of collections by 114 percent by identifying accounts with a high propensity to pay.

“Partnering with Experian Health has allowed us to be an advocate for our patients while also protecting our bottom line,” says Stan Salwei, Altru’s patient financial services manager. “Within 10 months of implementing, we were able to completely revamp our internal collections strategy to more effectively provide financial solutions for our patients in an ethical and compassionate manner.”

Experian Health does more than just provide the tools; we’ll consult with you and your team personally to find the most effective ways to use them. If you have not yet implemented a streamlined collections strategy, contact us today.

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No matter how much the healthcare industry evolves — whether through new legislative priorities or advances in AI and automation — one thing remains constant: the patient experience matters. Patients expect quality care, quickly. For five years running, timely access has been a top priority for patients, according to Experian Health's State of Patient Access surveys. But efficiency is just the start. In an uncertain world, patients also need reassurance, reliability and compassion. For revenue cycle leaders, meeting these expectations isn't just about good service. It's a competitive advantage. A patient experience built on empathy, convenience and personalization fosters loyalty and trust, driving both satisfaction and financial performance. With the right digital tools, providers can take meaningful steps toward improving the patient experience. What is patient experience and why does it matter? The patient experience encompasses every step the patient takes while seeking and receiving medical care. It goes beyond the clinical aspects of care and includes all the systems and strategies that determine a patient's access to care. From the moment they book their appointment through their clinical care and final bill payments, each interaction is an opportunity to make or break a patient's satisfaction with their provider. The patient experience can be a major driver of health outcomes. Inefficient systems lead to missed appointments, while confusing billing practices cause patients to postpone care. Adherence to care plans is more likely when patients are engaged and informed. And when patients feel positive about their healthcare experience, there are trickle-down effects for staff, who have more time to focus on priority tasks. It's also vitally important for an organization's financial outcomes. A positive patient experience increases patient retention, reduces billing disputes and accelerates payments. Research shows this goes both ways: well-implemented revenue cycle management improves the patient experience, too. What does a quality patient experience look like? Alex Harwitz, VP of Product, Digital Front Door, at Experian Health, says that a high-quality patient experience should encompass three things: “Choice, flexibility and convenience are themes that have come through strongly in our patient surveys. Patients are more mobile and more digitally active, so they expect services to be available on demand. They have a diverse range of schedules, responsibilities and preferences, and providers need to accommodate these variations so accessing care feels easy and convenient. Providers that leverage digital technology to deliver a patient-centered experience will see higher levels of patient engagement, better health outcomes, and a healthier bottom line.” Key strategies for improving the patient experience For healthcare providers, there's always a new delivery challenge around the corner. But it's also getting easier to improve the patient experience, thanks to digital technology. Here are five practical ways to make an immediate difference: 1. Reduce wait times Long wait times frustrate patients and lead to last-minute cancellations, which hurt revenue. Online self-scheduling, pre-visit digital check-ins and automated appointment reminders help keep schedules on track and reduce no-shows. According to the State of Patient Access 2024, these tools are also a smart way to meet patient expectations: 89% of patients want the ability to schedule appointments anytime, via online or mobile tools. 2. 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