According to a new survey, over 40% of health systems are reporting increases in bad debt, self-pay, and uncompensated care since the onset of COVID-19. In a recent podcast from Oregon HFMA, Scott Purcell, Professional Credit President and President of ACA International, outlined what he felt would help health systems overcome the revenue cycle challenges that have arisen as a side-effect of the COVID-economy. In this post, we are going to share his insights and some of the key strategies he says are a must for continuity in a tight financial environment.
#1 Accurate Data
Regardless of the economic climate, gathering accurate data is essential to recovery. Steps should be taken to ensure you capture as much patient information as possible from admission to better facilitate communications and engagement in the billing process. This includes obtaining consent for contact through any means, including digital channels, for themselves and any future third-party partners. Our internal research shows that each additional variable provided at the time the account is received, such as a correct phone number, phone number identified as a cell, physical address, email address and date of birth, or valid social security number increases collections incrementally. Accounts with complete, accurate data will have recovery rates many percentage points higher than those without it.
#2 Settlement Offers
Every tax season we find that many people take the opportunity to apply their returns to any outstanding debt. We witnessed similar behavior with the first round of stimulus checks. Tax season is rapidly approaching, and we will likely see another round of stimulus checks in the near future as well. Though medical debt isn’t typically a high priority for patients (due to the limits on credit reporting) an opportunity for savings can be a significant motivator. That’s why we suggest health systems consider settlement offers as a means to promote movement on stagnant accounts and relieve the strain they put on resources.
#3 Speech Analytics
The application of analysis on patient interactions can help to recover revenue in a number of ways. First, this practice bolsters compliance efforts (costly if ignored) and assists in creating a consistent patient experience, which we know results in improved revenue overtime. The technology also provides a number of insights that can be utilized for process improvement and effectiveness, saving precious resources by allowing you to hit your target on the first try— be it your first attempt at contact, or first call resolution for an overdue account.
#4 Time
Often, we see providers cancel or write off accounts too soon. This is in part due to the existing CMS guidelines for Medicare bad debt reimbursement, but recent proposed changes tell us that we may have more leeway soon. It’s easy to get focused on the bottom line and forget that patient accounts are not governed by numbers but rather people. It takes time to recover from a financial hardship like job loss, just like it takes time to recover from an illness. With this in mind, we recommend that instead of cycling through old accounts, providers simply wait. We saw a similar dip in collections during the great recession, a dip that quickly boomeranged alongside the economy. The COVID-crisis should not be any different. With tools like our robust monitoring system, patients’ financial situations can be monitored for positive change allowing contact to be established when it’s most likely going to result in positive traction— for account recovery and patient relations.
We understand the challenges that the healthcare industry is facing given the constraints on resources due to patient communities wrought with economic hardship. That’s why our strategy as a collection partner is to utilize all of the resources available, from cutting-edge technologies to industry experts like Scott, to deliver better service with a better value. We want to use our tools to ensure continuity for the clients like you who do so much for our broader communities.
Want to hear more? Listen to the full podcast here.