A Comprehensive Guide to Medical Bill Payment Plans
According to a new KFF analysis, one in ten adults owe medical debt, with millions owing more than $10,000. Another statistic paints a grim reality for patients and healthcare providers, attributing a staggering 66.5% of bankruptcies to medical debt.
Healthcare costs have become a pressing concern for millions of Americans. Many individuals find themselves burdened by the weight of medical bills. But what if there is a way to reduce this financial strain while boosting revenue for your healthcare providers? Medical payment plan—a game-changing option reshaping the healthcare industry.
Offering quality healthcare is crucial, but ensuring a steady stream of revenue is equally imperative for sustainable business growth. To tackle this challenge, many practices have started offering healthcare payment plans to their patients, helping them pay for treatments and procedures.
Why make your patients wait to get the care they deserve when you offer easy payment plans to them instantly?
In this blog, explore what payment plans are, how they work, and their impact on your practice's revenue and customer experience.
WHAT IS A MEDICAL PAYMENT PLAN?
It is any repayment option that offers patients a chance to pay bills in installments rather than facing the burden of paying out-of-pocket costs in one go. Payment plans provide accessibility and flexibility, making healthcare affordable for patients.
HOW DO THESE PLANS WORK?
Implementing healthcare payment plans involves various crucial steps that, as a care provider, you must consider:
1. Initial Assessment
To determine the patient’s eligibility for a payment plan, you must first evaluate their financial situation. During this assessment, factors to consider include income verification, credit score, and current payment obligations.
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2. Customize Payment Terms
After the assessment, you can collaborate with patients to create a payment plan that meets their needs and budget. This may include the duration, type, and any applicable interest rates.
3. Payment Collection
Various payment collection methods are available, such as online payment portals, automatic deductions, manual invoicing, etc. You may choose to manage the collection process internally or use payment collection software.
4. Monitoring and Support
Throughout the duration of the payment plan, you need to track payment progress and provide support as needed. It may include addressing questions, helping with any payment challenges, and ensuring transparency in the payment process.
By integrating Credee, a reliable payment plan software, you can offer your patients the opportunity to pay for medical services in affordable monthly installments. Allow patients access to necessary treatments without being burdened by upfront costs and improve overall patient satisfaction and retention.
HOW CAN OFFERING PAYMENT PLANS INCREASE REVENUE?
They have proven to increase revenue, as providing consumers with choices influences their service selection and overall satisfaction. Patient-friendly, interest-free payment plans enable more patients to effectively manage their healthcare bills and contribute to the financial success of your organization.
Revenue cycle leaders recognize that offering an interest-free medical payment plan is not only beneficial for patients but also supports the providers’ bottom line. By addressing the increasing out-of-pocket costs patients face, payment plans demonstrate a patient-focused approach while simultaneously improving your organization’s financial health.
Another study has shown that implementing cost-effective care, flexible appointment options, telehealth services, and prioritizing patient engagement and loyalty significantly improve access to necessary healthcare.
The demand for payment plans among patients is evident. A survey conducted in 2017 revealed that 90% of healthcare consumers were more likely to return to a provider offering medical bill payment plans.
By actively addressing the challenge of payment collection and offering solutions that patients appreciate, you can ensure your financial viability and effectively manage your revenue cycles. Furthermore, automated billing systems, combined with health payment systems, offer a promising solution to enhance patient satisfaction and retention.
WHAT ARE THE BEST PRACTICES FOR IMPLEMENTING HEALTHCARE PAYMENT PLANS?
Healthcare providers should follow these techniques that prioritize transparency and convenience for both patients and them:
(A) Transparency is Key
By prioritizing transparency in your payment plans, you can foster trust, empower patients, and create a positive financial experience. Clear communication regarding payment frequency, the total amount due, and any associated interest rates ensure that patients are fully aware of their financial responsibilities. Ultimately, transparent payment plans lead to stronger patient-provider relationships and a more seamless financial journey for all parties involved.
(B) Provide Personalized Payment Solutions
Understand that each patient’s financial capability is unique, and a one-size-fits-all approach might not work for everyone. Incorporate customized solutions, allowing you to accept payments through different methods, such as online payments, credit/debit cards, etc. This flexibility will make your payment plans more appealing and accessible to a broad range of patients.
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(C) Automated Payments
Streamline the payment process with Credee, an automated payment plan software. By integrating it into your existing system, you can create payment plans and automate collection from patients. It minimizes the administrative burden of manual payment collection, ensuring timely but also reducing late payments.
(D) Flexibility and Adjustments
Life circumstances can change, impacting a patient's ability to make payments. Credee's platform allows flexibility in adjusting payment plans when necessary. By accommodating changes, such as modifying payment amounts or adjusting timelines, healthcare providers can support patients during challenging times and maintain a positive patient-provider relationship.
Understanding and implementing a medical payment plan can have a significant impact on your organization. By offering protected and flexible payment options, you can alleviate the financial burden of patients while ensuring a steady revenue stream.
The key to successful implementation lies in transparency, personalized solutions, automated processes, and regular communication.
With medical payment plan software like Credee, you can improve revenue, increase patient satisfaction, and foster stronger patient-provider relationships. Prioritize the financial well-being of patients and see them prioritizing your brand over others.