How Patient Payment Plans Can Improve Practice Cash Flow and Patient Satisfaction
As more Americans feel the tightening of their household budgets, paying for healthcare adds to their collective burden. According to the West Health-Gallup Healthcare Affordability Index, the percentage of the public who can afford and access prescription drugs and quality healthcare stands at a new low of only 55%.
And with the rise in patient health costs, payments are often delayed, disrupting the financial stability of medical practices. Offering flexible patient payment options is not just a courtesy; it’s quickly becoming essential to healthcare revenue cycle management (RCM).
This article reveals:
- How patient payment plans can improve the financial health of your organization
- How financial options empower patients to access the treatment they need
- Innovative payment solutions to create a win-win scenario for you and your patients
The Shift Toward Patient-Centric Payment Solutions
With the prevalence of high deductibles, patients are responsible for a greater portion of their healthcare costs. With this rise in financial responsibility comes sobering consequences. A recent KFF polling on the nation’s experiences with increasing healthcare costs reveals:
- One in four adults say they have skipped or postponed getting the care they needed because of the cost.
- About four in ten adults (41%) report having debt due to medical bills.
As patients face these financial impacts, more and more are demanding greater payment transparency, convenience, and flexibility from their providers. Failure to meet these expectations can lead to delayed payments or patients going elsewhere for care.
So, how can providers improve their organization’s revenue cycle and help patients get the treatment they need? It’s time to move towards patient-centric payment solutions. Next, we offer how using payment plans benefits both providers and their patients.
How Payment Plans Benefit Providers
When you offer a payment plan, it allows patients to divide the cost of their medical expenses into smaller payments instead of paying the entire amount in one shot.
This option not only benefits the patient but also increases your revenue stream. Here’s how:
Increases cash flow
With patient payment flexibility, medical practices can adopt a steady revenue stream. How? Rather than waiting for full payments that may never happen, offering plans ensures regular installments that help practice finances run smoothly.
Boosts loyalty
Offering patient-friendly billing solutions, such as installment plans or automated recurring payments, shows patients that their well-being is your top priority. This approach can significantly foster lasting relationships, keeping patients in network, which is financially lucrative for you and promotes value-based care models.
Attracts new patients
The availability of payment plans also encourages patients to recommend your practice, and it can also attract new patients who may be hesitant to seek care due to cost concerns. Patient payment plans also lower financial uncertainty and make billing more predictable. This builds patient trust.
Reduces debt
Flexible payment options help patients manage their care costs without taking away money they may need for other financial obligations. By reducing medical debt for patients, providers reinforce the idea that access to care should always be available.
Research shows that households that have their medical debt reduced or relieved see improvements in access to medical care.
Streamlines workflows
It’s time to say goodbye to manual and inefficient processes that are outdated and costly and embrace automated digital tools. Including automated payment solutions in your revenue cycle management process reduces delays and minimizes administrative headaches.
For example, automated systems and tools powered by artificial intelligence (AI) can send timely reminders via text, email, or phone calls to patients about upcoming payments, preventing them from forgetting due dates. This action improves payment collections and overall practice management.
How Financing Improves Patient Satisfaction
Nothing speaks to patients more than understanding their financial concerns. By offering payment plan options, providers demonstrate empathy while solving financial challenges for their patients. These choices result in positive outcomes including:
Reducing stress Fifty-eight percent of US adults said paying medical bills is stressful, while 55% said simply understanding what they owe is a source of stress, according to a Healthcare Financial Experience Study. By letting patients pay at a pace that works for them and their budget, payment plans reduce stress and create a more supportive financial experience.
Empowering patients and improving health outcomes By offering payment plans, patients are better prepared to manage their expenses and can make educated decisions about their healthcare options. When patients aren’t worried about the cost of treatment, they are more likely to concentrate on their care plan, improving health outcomes.
Creating affordability and reducing debt Spreading the cost over time allows patients to receive the care they need and budget appropriately. When this plan is implemented, patients tend to pay on time and in full, improving cash flow and reducing the risk of medical debt.
Today’s Top Payment Plan Solutions
Simplifying the patient finance journey is key. Here are five effective ways to make their medical payments easier, affordable, and faster.
1.Offer transparent pricing
Unexpected medical bills and complex payment options cause patient stress, highlighting the need for straightforward pre-service cost estimates. Payment transparency in healthcare eliminates this confusion, builds trust, and reduces billing disputes.
One study found that increased transparency could enable patients to plan and manage their healthcare bills more effectively. For example, payment estimates can help them prepare for upcoming statements and pay right away if they choose.
2.Propose choices
Every patient’s financial situation is different. Providing various options, like monthly installments or pay-as-you-go plans, can meet patients where they are.
For example, using a credit card or HSA balance may be suitable for lower balances. Customization enhances patient satisfaction and reduces missed payments.
3.Leverage integrated payment platforms
Integrated payment platforms streamline the process by consolidating multiple payment options into one interface. For example, the DrChrono EHR platform offers an integrated payment solution.
With this feature, providers can interact with patients by engaging them where they are—online and on their mobile devices. This solution benefits providers by:
- Simplifying and streamlining payment workflows. Providers can manage and create customized patient payment programs, allowing patients to set up their plans and automate payment processing with recurring payments.
- Helping providers get paid faster. Over 96% of patient claims are paid within 60 days.
4. Present financing options Interest-free financing has become popular for patients needing more time to pay their medical bills. By partnering with third-party financing companies, providers can offer interest-free payment plans that allow patients to spread their payments over time without accruing interest.
This embedded finance payment option helps patients afford the care they need when needed.
5.Go mobile
With the rise of mobile EHR apps, mobile payment solutions have become a key innovation in medical billing. These tools allow patients to pay their bills, set up payment plans, and manage their accounts from their smartphones or tablets.
This feature offers many benefits including:
- Convenience: Mobile payment solutions allow patients to manage their healthcare payments anytime and anywhere.
- Engagement: Mobile apps can send push notifications for payment reminders and confirmation, keeping patients engaged and informed.
- Easy payment: The solution reduces the time and effort required to pay bills and manage accounts.
Find a Flexible Payment Solution for Your Practice
Healthcare providers don’t just deliver care—they also play a major role in shaping patients’ overall experiences. Offering patient payment plans is a practical step toward enhancing patient satisfaction while staying ahead in revenue cycle management. It may be a small change, but it significantly impacts your practice’s success and patients’ peace of mind.
Ready to include flexible payment options for your patients? Contact us to learn more about DrChrono EHR integrated payment solutions today!