With the recent announcement from the USPS about raising postage prices and slowing down delivery, it’s time for healthcare to rethink its traditional paper-focused patient billing strategies. In this article, we will see why electronic patient payment solutions are the way forward and how they can address the challenges faced by the industry.
Growing Patient Financial Responsibilities
With the rise of High Deductible Healthcare Plans (HDHPs) and an overall increase in the population, more patients now owe more money than ever before. This has resulted in a surge in patient statements sent out by healthcare entities and their supporting Revenue Cycle Management (RCM) and billing organizations.
Sending out patient statements comes with a cost, and with postage prices on the rise, the industry is facing the highest patient billing costs in recent times. The increased expenses in sending out these statements, combined with the growing patient responsibilities, call for a reevaluation of the traditional paper-based approach to billing.
Changing Patient Behaviors
In recent years, patient behaviors and preferences have shifted significantly. Millennials have surpassed baby boomers as the largest population segment, numbering over 75 million. Unsurprisingly, over 70% of American consumers now prefer electronic statements over paper.
Considering this shift, healthcare organizations must adapt to the changing landscape and embrace electronic billing solutions to meet patient preferences. Although paper statements might still play a role in the patient billing process, data indicates that a significant portion of patient payments, about 71%, occurs before a paper statement is even produced. This highlights the importance of adopting a digital-first strategy to capture payments efficiently.
Speed Matters in Patient Billing
A critical aspect of patient billing is how the bill reaches the patient after their provider visit. Data strongly suggests that the quicker a bill is delivered, the more likely the patient will make a payment promptly.
Electronic billing solutions excel in this aspect, enabling healthcare organizations to deliver bills instantly through secure online portals or email. On the other hand, traditional paper-based billing can be slow, involving several steps, including queuing up the statement in a billing system, printing, mailing, and delivery to the patient.
When a paper statement reaches the patient, the chances of converting the balance to payment significantly decrease. On the contrary, over 12% of payments happen on the first day a patient receives a bill electronically. A digital-first strategy can improve revenue collection within the first 30 days.
Overcoming Challenges in Electronic Billing Adoption
While electronic billing presents numerous advantages, adopting this approach has needed to be faster due to challenges in the healthcare industry. Stricter regulations and outdated systems have made it difficult for providers and RCM organizations to transition fully to electronic patient billing technologies.
However, the increasing financial burden on healthcare providers and the importance of patient satisfaction underscore the need to overcome these challenges. Investing in modern and user-friendly electronic billing systems can improve patient and healthcare organizations’ outcomes.
Conclusion:
The USPS’s recent announcement of postage price hikes and slower delivery standards has spotlighted the flaws of traditional paper-focused patient billing. Electronic patient billing solutions have never been more critical considering the changing patient preferences, growing financial responsibilities, and the importance of prompt payments.
Healthcare organizations must recognize the significance of adopting a digital-first strategy and transitioning from paper-focused billing to electronic solutions. By doing so, they can significantly reduce patient billing costs, improve payment efficiency, and enhance overall patient satisfaction. The time for the healthcare industry to embrace the benefits of electronic patient billing is now.
