Becker's Hospital Review

13 Executive Briefing Rising deductibles create financial risk for hospitals and health systems, as many patients are unable to afford the high out- of-pocket costs associated with these plans. However, there are many steps provider organizations can take to prevent increasing patient financial responsibility from causing bad debt to rise. Elevate the patient financial experience Because relying heavily on payments from patients is a whole new ball game for healthcare organizations, hospitals — even hospitals that offer exceptional clinical care — struggle with the shift to patient-as-payer. Provider organizations could ignore subpar patient collection rates in the past, as they were traditionally supported by reimbursement from government and commercial insurers, but that is no longer the case. Patient collection rates now have a significant effect on medical providers' financial positions, making it critical for hospitals and health systems to adopt a modern approach to billing and broaden their understanding of their patients, according to Mr. Law. He said one of Zotec Partners' fundamental jobs in the past was to collect money for healthcare providers, much of which came from commercial insurers. However, the company's role has evolved along with the rise in patient payment responsibility. "We're getting involved in the patient flow," Mr. Law said. "We're in the patients' lives like we have never been before." From pre-registration through post-discharge, it is crucial for hospitals to engage patients in financial conversations. Having these discussions at every point of contact prevents patients from being surprised by an unexpected medical bill after services are rendered. Zotec Partners offers technology solutions hospitals and health systems can use to determine whether a patient has met his or her annual health insurance deductible and to calculate out-of-pocket costs. Once these costs are established, hospital and health system revenue cycle staff can help the patient understand how he or she can meet those financial obligations. By educating patients on the front end, hospitals and health systems not only improve the patient experience but also increase the likelihood of getting paid. "[It] benefits the hospitals and benefits the patients," Mr. Law said. Engaging patients early on and keeping them informed throughout the process are two key ways hospitals can increase patient collections without damaging the patient relationship. Creating a positive financial experience for patients also involves giving them a variety of payment options and keeping them engaged in the billing process, according to Mr. Law. Zotec Partners uses technology to make billing and payment more convenient for patients. Zotec Partners uses text messages to keep patients informed of balances owed. The technology also allows patients to submit payments via text message, online or through an interactive voice response system. For less tech- savvy patients, or patients with billing questions, Zotec Partners has customer service representatives available to assist over the phone. Giving patients the ability to make payments through multiple channels simplifies the process and can translate to a higher propensity for patients to pay. However, patients may still fail to satisfy their full financial obligation. The percentage of patients who fail to pay their hospital bills in full has steadily risen in recent years. Nearly 70 percent of patients with hospital bills of $500 or less did not pay off the full balance in 2016, up from 53 percent in 2015 and 49 percent in 2014, according to a report released last year. One reason patients are not paying is that they are unsure of how much they owe. After receiving numerous bills and benefits statements after hospital visits, patients become frustrated when they are unable to determine how much they owe, and some ultimately choose not to pay the bills. To avoid this, some hospitals and health systems are moving to simple, consolidated billing statements. Mr. Law said one of the reasons hospitals ask Zotec Partners to take over their self-pay receivables is to ensure patients receive easy-to-read statements that clearly show the amount owed and when payment is due. Make patient billing and payment a strategic imperative The healthcare industry has undergone many changes over the past two decades, and one of the most consequential trends for providers has been the rise in high-deductible health plans and the corresponding increase in patient financial responsibility. As patients shoulder more of the costs of their medical care, the financial fate of hospitals and health systems depends on the ability to deliver high-quality clinical care and a positive financial experience to patients. Hospitals and health systems are implementing more effective and consumer-friendly payment and billing processes to remain financially viable. Many are partnering with experts, like those from Zotec Partners, who can help these organizations navigate modern revenue cycle challenges. n Zotec Partners is an industry leader in revenue cycle and practice management services for physicians and health systems, managing in excess of 80 million medical encounters annually. The company is committed to the continual pursuit of excellence, delivering effective solutions through its proprietary technology, personalized service and measurable client results. Current- ly, Zotec Partners serves more than 9,000 physicians in all 50 states.

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