Now more than ever, patients need flexibility in managing medical bills. Most people really do want to pay their bills, but they need help. Many times these costs are unexpected and they’re growing. While payment plans have been an option for a long time, they’re now critical and should be the central focus of a patient financial engagement strategy
Here are two major ways creating payment plans pays off.
1. The Patient Experience
Medical debts are often associated with some form of trauma. This means patients are already in a delicate state prior to the financial implications that follow their medical need. With higher premiums, higher deductibles, and less coverage, it’s not surprising that many people find their accounts in collections. In a recent survey, Kaiser Family Foundation found that healthcare coverage costs for employee-sponsored plans, continue to rise in what is a seven year trend; an upward movement that is rapidly outpacing wage growth and inflation. This puts additional burden on low-income patients. The entire experience can be quite overwhelming causing the patient additional stress often resulting in complete inaction on their account. In another survey, more than half of the respondents stated they worry about paying medical bills under $1000. Working with patients to develop a manageable payment plan can be a light in the dark. Sometimes simply taking the time to address the balance in respect to their personal situation is enough to relieve these feelings of stress. The act of working with the patient to address the problem together can give them the support they need and assist in faster resolution of financial obligations. It’s not only relationship building- it’s a winning experience for both the patient and their provider.
2. Increased Resolution Rates
Our trend data shows that patients who do not have the money to pay their balance in full at the time of service move toward resolution faster with an established payment plan. Borrowing knowledge from basic psychology, the act of creating a payment plan works in two ways; 1) it reaffirms the patient’s sense of financial responsibility, 2) it breaks the obligation up into what is perceived as manageable parts. Without the exercise of adapting the new bill into their personal budget, it can be perceived as too big to handle and result in procrastination or inaction. When there is structure around the management of a debt, people feel committed and motivated to adhere to the monthly agreement. Once you understand the motivation behind payment decisions, it’s easy to see why data on resolution rates supports the practice of offering payment plans.
In the ten year period between 2006 and 2016 out-of-pocket spending increased 54%. Patients are going to need help. Professional Credit’s approach is designed to consider the needs of each patient and offer them flexible alternatives. From payment plans tailored to their unique circumstances to a variety of digital tools for payment and account management, we take care to make the experience for patients as painless as possible.
To learn more about how Professional Credit makes it easier for patients. Read about our “New Deal” approach.