Upfront pay: Small amounts that add up
Upfront pay: Small amounts that add up
Keep patients informed about what they owe
Money is one of the last things most physicians want to talk about with patients — especially when it comes to so-called "small change " items like deductibles and co-pays. Yet, this small change can quickly turn into big bucks that have gone missing from the practice’s bank account if not properly managed.
Patient-paid out-of-pocket medical expenses amounted to some $187 billion in 1997 — or 17% of all health care spending — according to federal government figures. And this figure is just going to keep growing if employers and insurers shift more of the cost of care onto consumers.
Since individual co-pays and deductibles usually just amount to a few dollars, the tendency is to simply waive or write them off if they are not immediately paid.
Here’s some advice on collecting co-pay and deducts from Elizabeth Woodcock, MBA, a practice management consultant with the Medical Group Management Association in Englewood, CO:
• Tell patients what they owe while still at the office. "The most important step that physicians and their office staff can take to get their patients to pay their share of medical bills promptly is to talk to patients openly about their responsibility to pay what they owe," she says.
Another advantage of the candid approach is you reduce the possibility of "sticker shock" when the patient finally gets his or her bill, which can lead to more confusion and hassle over who owes what part of the bill.
"A lot of patients are sure what their deductibles and co-payments are," notes Woodcock. "Things like routine checkups or immunizations, for instance, might not be covered under their health plan.
This is why she says it is everyone’s best interest to have a staff member specializing in billing issues talk with patients about what their co-payments and deductibles are and their responsibility to pay them, says Woodcock
"It’s important to educate the patient on what the cost is, what won’t be covered, etc. That way, the patient can make an informed choice."
An example of a direct approach is the Front Range Center for Brain and Spine Surgery, a three-physician practice in Fort Collins, CO. The practice takes an aggressive approach in talking with patients about paying for their portion of their medical bills.
The medical group, which performs mostly elective procedures, receives payment on an unusually high 95% of its patient bills, says Linda Cheatham, who handles patient collections for the practice.
The center credits this high collection rate to the fact it immediately verifies each patient’s insurance benefits, then informs them what their health plan will cover and what they themselves are responsible for paying.
The office staff then gives patients an estimate of their share of the cost, asking that they pay by credit card at the pre-operative visit.
• Installment method. In Texas, the Austin Regional Clinic has been able to increase collection rates by letting some patients who simply can’t afford to pay their bill at once pay in monthly installments.
Tip: If you go the installment route, make sure the cost of billing the patient each month isn’t more than you plan to collect. Collecting a $5 monthly payment, for instance, doesn’t even cover the cost of making up and mailing the bill, notes Woodcock.
• Alternative services. Another way to reduce the risk of unpaid patient bills is to direct patients in a helpful, friendly way to less expensive places for items their insurance doesn’t cover. For example, if a patient needs immunizations, but her policy doesn’t cover it, she can be directed to a county health department, where immunizations are offered free or for a small fee.
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.