One of the most challenging issues for health systems is ensuring prompt payment of patient bills while maximizing revenue. It’s no secret that the rise in healthcare costs have largely outpaced average wages. Over the past year, premiums for family coverage rose 5% whereas workers’ wages only increased by 3.4%, according to Kaiser Family Foundation’s 2019 Employer Health Benefits Survey. As a result, millions of Americans struggle to pay their out-of-pocket medical expenses. For health systems, moving these lost payments to bad debt can create serious financial issues.
However, what options can health systems take when patients are unable to pay? When patients are unable to pay and then sent to collection agencies, providers are thrust into a vicious cycle that is both costly and likely harmful to the overall patient experience.
Patient Financing as a Solution
Fortunately, there is a viable alternative to the collections route that more hospitals like The University of Mississippi Medical Center are adopting in their communities: third-party patient financing.
Patient financing allows for healthcare providers to receive prompt payment while patients can arrange their payment plan directly with a third-party. Because patient financing companies are focused on enhancing the patient financial experience, they are able to supply flexible terms in repayment, including zero-interest plans and a range of lower monthly payment plans with low interest. Additionally, these companies can provide patients with longer repayment terms than traditional credit programs.
This can be especially helpful for patients who do not receive payment plan options from their healthcare providers. In a recent survey by AccessOne, less than 14% of U.S. adults were receiving a low-interest or zero-interest payment plan through their healthcare provider. Bringing in a third-party patient financing solution helps bridge the payment divide between patients and providers. By receiving the benefit of flexible and affordable payment terms, patients are more likely to pay in full.
Partnering with a patient financing company helps healthcare providers maximize their revenue, reduce costs of collections, and allows employee resources to focus on higher priority initiatives. Health systems can maintain financial health, keep their focus on clinical care, while increasing patient satisfaction and loyalty.
Bringing Patients and Providers Together
At AccessOne, each of our payment plans are tailored to the financial goals of both patients and providers. Founded by providers, AccessOne focuses on providing a patient-focused experience which allows millions of consumers to afford out-of-pocket medical expenses across the country. All patients qualify for AccessOne’s programs with no credit reporting or negative outcomes. Navigating the modern healthcare landscape will require patience, flexibility and creativity. Using a third-party patient financing company, like AccessOne, will help providers and patients realize their shared goals of accessible and affordable patient care.