The Road to Recovery: Strategies for Safely Restarting Elective Procedures

© 2021 Phreesia™ 

WHITE PAPER
Patient Payments

Best Practices for a Changing Landscape  

Introduction

There has never been a more important time to prioritize patient payments. An estimated 5.5 million Americans have lost their employer-sponsored health insurance during the COVID-19 pandemic, and nearly 30% of adults say they’re still struggling to cover their usual expenses. Coupled with the steady rise of high-deductible health plans (HDHPs) and an increasingly challenging reimbursement environment, patients’ out-of-pocket financial responsibility is determining a larger percentage of provider revenue than ever before.

According to a recent survey, more than 30% of U.S. workers with employer-sponsored health coverage are currently enrolled in HDHPs with a savings option that have deductibles of at least $1,400 for an individual and $2,800 for a family. That’s up from just 4% in 2006. During that same period, the average deductible for covered workers increased by 182%.

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These plans often present a sobering reality for patients whose high out-of-pocket costs could mean serious financial hardship—or even delaying care. The most recent KFF Health Tracking Poll discovered that 32% of adults have delayed or forgone medical care in the past year due to cost concerns, and 65% of adults report being worried about their ability to afford surprise medical bills.

For healthcare organizations, patients’ growing financial responsibility has meant shifting away from traditional collection practices—relying on insurers for the majority of their reimbursement and sending multiple paper statements to collect patient balances—to considering new strategies to maximize profitability. 

That shift has become even more urgent during the pandemic. As low patient volumes hampered fee-for-service reimbursement in 2020, medical practice revenues fell 32% on average, according to an American Medical Association survey. And continued staffing shortages have left most healthcare organizations with less capacity for manual billing tasks—even as patient demand returns.

But despite growing awareness of value-based care and alternate payment models, traditional reimbursement practices still dominate the healthcare landscape. A recent survey found that more than three-quarters of healthcare organizations’ revenue came from fee-for-service contracts in 2021, whereas just 24% came from alternative payment models.

Here’s the good news: In the face of these challenges, there are proven, effective ways to improve payment processes, help patients manage their financial responsibility and put your healthcare organization on more solid footing.

About This White Paper

This white paper provides healthcare organizations with the best practices to improve their payment processes and give patients the flexible, consumer-friendly financial experience they want. We’ll explain:

Although every organization’s situation is different, the steps outlined in this paper are widely applicable and will go a long way toward maximizing profitability in an increasingly challenging landscape.

WHITE PAPER
Patient Payments

Best Practices for a Changing Landscape 

About This 
White Paper

This white paper provides healthcare organizations with the best practices to improve their payment processes and give patients the flexible, consumer-friendly financial experience they want. We’ll explain: