With the changing landscape of the healthcare system, patient payment responsibility has been steadily on the rise. Deductibles are increasing at a rapid rate, leaving hospitals and private practices to reassess the way their revenue cycle works.
With a much larger portion of the yearly revenue collected directly from patients, it's imperative that the practice billing cycle prioritizes the patients' financial situation to best work within their means for prompt payment at or near the time of service.
It's time for a revenue cycle makeover.
Old Versus New
The old model that patients and practices grew accustomed to over many years no longer serves either party adequately. In most practices, the patient provided their insurance information and any co-pay at the time of service and claims were billed to the insurance carrier initially. The patient often received statements until the claim was finalized with insurance, but did not make payments on the remainder of the bill until after the insurance process was over.
When the highest percentage of claims were paid by insurance carriers, this method worked out well because the patient's responsibility for payment was often smaller and more manageable.
Today, many deductibles are far greater and the patient may not always be aware of the full extent of their coverage or what they will be responsible for paying for service. For practices to successfully adjust to the future mode of payment, it's essential that patients are educated on the cost of their care as soon as possible and that payment arrangements are made early in treatment or prior to appointments.
RCM Technology is the Foundation
Technology has advanced in such a way that practices now have access to the information that will allow them to estimate patient responsibility ahead of time. Many practices are finding it extremely helpful to counsel patients in advance and work with them on their financial obligations - creating a payment schedule, helping them understand their eligibility for financial services, etc.
At Its' Core? Card On File RCM Technology
Practices that use card on file software are able to take the patient's credit card information in advance to keep on file with their records. The card can be used in a number of ways:
- pay co-payments
- make scheduled payments
- pay for medications and medical equipment
- balance remaining after insurance claims have been finalized
For practices to be successful at collecting patient payments for the future, a revenue cycle makeover is essential. At the core of that makeover is an RCM technology solution like card on file. It's simple for patients and practice staff to use and will create sustainable, predictable payments. Invest in an RCM makeover for your practice today.
Learn more about card on file in our eBook below.