Many Americans struggle to pay their medical bills, or choose to forgo needed health care from fear of the expense or lack of access to government benefits. Self-pay customers are especially vulnerable to not being able to pay large bills in bulk, leaving hospitals with strings of unpaid bills. In 2020, up to 79 million Americans have medical debt that they are struggling to pay off, and hospitals consequently suffer when they are not able to collect payments to cover their overhead. Just this year, hospitals have faced additional financial pressure from the strain of COVID-19, with estimates of up to $202.6 billion of revenue loss in only four months 1.
Now imagine a tool that increases hospitals’ reimbursement rates and advocates for patients’ best interests, helping them to get the care they need while assisting your facility to recoup due payments. A third-party revenue cycle management company can do just that. The Midland Group offers hospitals a wide range of revenue cycle services, including our proven patient-focused payment plans and bill tracking that works (and our partners love!) While hospitals can certainly attempt to manage their own in-house payment plans, there are several benefits to outsourcing payment plans to an experienced third-party vendor.
Tailored Payment Plans Offer Hospitals a Competitive Edge
Looking at how payment plans are the most attractive and affordable way to pay off large purchases in every other industry, it makes sense that having a solid payment plan system gives hospitals a strong competitive edge in the healthcare industry as well. When purchasing a car, a home, or even a television, consumers seek out a payment plan that works for their income and budget. A hospital having the same flexibility with medical bills is more likely to have patients more satisfied with and loyal to their healthcare provider, especially if the hospital is able to provide personalized payment plans to their patients. Unfortunately, many hospitals offer a few general payment plan options without the personalization necessary. This can be due to several reasons, including lack of expertise to design the individual plans or lack of personnel to identify and follow up with each patient’s needs. When hospitals outsource payment plans to a trusted third-party RCM vendor, however, they are tapping into specialized resources that can assist them with the implementation and management of patient-tailored payment plans. As such, having such a personalized payment plan system in place often inspires strong patient loyalty and thus more effectively increases collected revenue.
Outsourcing Payment Plans Free Up Resources
When a hospital outsources their billing to a third-party vendor, they free up valuable resources within their billing department. While seemingly simple, payment plans can be a huge time-consumer for many hospitals due to the complexity and tediousness of designing the most effective payment plan for each patient and tirelessly following up with them through endless calls, emails, and regular mail. Many hospitals choose to outsource payment plans to a specialized third-party billing company because they find it to be more efficient and beneficial for their billing department. What they find is that a specialized team of RCM experts can manage the thousands of payment plans in a fraction of the time it takes your billing staff to do the same, and often with greater effectiveness. As such, outsourcing hospital payment plans means that you won’t need to hire as many billing staff, and the team you do have can focus on servicing patients’ immediate needs and thus do it with utmost excellence, significantly improving efficiency and decreasing overhead costs.
Personalized Billing Solutions = A Win for Everyone!
When individuals and families have adequate payment options, they are far less likely to be burdened by medical bill debt. As such, a deep understanding of patients’ financial options is key to effective bill collections. Outsourcing to an RCM vendor with experience and expertise in all aspects of RCM is especially useful in cases where patients need more assistance than regular payment plans. For example, 41% of adults under 65 struggle to pay off medical debt, while only an estimated 19% of adults over 65 struggle, because they are covered by Medicare. 2 The Midland Group specialize in all forms of patient advocacy, including payment plans, charity assistance, public benefits, and so much more. By connecting patients to all available resources, hospitals can help patients figure out the right solutions to help them pay off their medical bills in ways that work best for them. Outsourcing your facility’s payment plans allow you to set up hundred and thousands of payment plans effectively and efficiently, which builds a strong pipeline of consistent revenue for your facility.
About the Midland Group
The Midland Group’s team of RCM experts are dedicated to providing our clients with first-class patient advocacy and maximized reimbursements. We work directly with patients in our partnering facilities to help them understand their coverage options and design a plan that works for them. In a time when hospitals are needed more than ever, third-party billing can assist hospitals in making sure that both their and the patients’ financial needs are met. As a result, our partnering hospitals see increased revenue, increased patient satisfaction, and simplified, streamlined billing processes, which means fewer headaches for your staff and more health care coverage for those who need it. Book your free assessment today to see how you can maximize all potential revenue surrounding all types of liability claims.
1. https://www.aha.org/guidesreports/2020-05-05-hospitals-and-health-systems-face-unprecedente d-financial-pressures-due
2. https://www.commonwealthfund.org/publications/newsletter-article/survey-79-million-america ns-have-problems-medical-bills-or-debt#:~:text=A%20recent%20survey%20from%20The,from %2034%20percent%20in%202005.