Becker's Hospital Review

14 Sign up for the COMPLIMENTARY Becker's Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 think the plans are the sole cause of patients failing to fulfill their cost-sharing obligations. educating the patient population, something hospitals are already doing. "I think it's also true that we have more and more people who are either unemployed or in jobs that pay less," she says. "We've had a big drop-off in household income since the recession. I think part of what they're seeing is the impact of that." "They're trying to work with the patients up front so they'll understand what their financial obligations will be and developing strategies to help their patients pay their bills over time," she says. With more provisions of the healthcare reform law kicking in and rising healthcare costs still presenting a pressing economic conundrum, it seems likely that hospitals will continue to grapple with bad debt, and high-deductible health plan enrollment will keep rising. "Healthcare costs are going to continue to escalate, and reform will continue to drive the penetration of high-deductible health plans," Mr. Froude says. "Hospitals need to have proactive strategies in place to protect their financial health and help their patients."  How hospitals and employers can fight bad debt With a growing number of patients heading to the hospital with high-deductible coverage, what can healthcare providers — and employers — do to prevent a corresponding flood of unpaid bills? Ms. Steinberg of the AHA recommends Employers can ease the burden on healthcare providers by making sure their workers understand their benefits before they even show up at the hospital, she says. "The education should be occurring when the person signs up for the plan, not when they show up for services," she says. Hospitals, too, can play a vital role in ensuring patients understand their financial obligations. "Our hospital clients are increasingly spending time educating their patients about their financial liabilities even prior to admittance and providing ways for them to cover their costs so they can get the care they need," Mr. Froude says. Mr. Fioretti of HNI agrees employers have to educate their employees in order for the highdeductible plans to have an optimal effect. "You can't just slap on a high-deductible plan," he says. "You have to surround it with a strong enough support system to teach people how they can be good consumers and provide other incentives for them to maintain their health." Ms. Darling suggests that hospitals and other care providers work hard to stop providing services that don't have clinical value through efforts such as the "Choosing Wisely" campaign, an initiative launched by the American Board of Internal Medicine Foundation, to encourage conversations between physicians and patients about necessary and appropriate care. One other option is setting up payment programs to let patients pay their bills over an extended period of time, a strategy Mr. Hogan of DeSoto Memorial Hospital opted for by using CarePayment. "That helps us to get a little more smoothing of the cash flow curve," he says. Conclusion In the end, it appears that high-deductible health plan enrollment will keep growing along with the need to contain healthcare costs, adding to the assortment of challenges hospitals will continue to face in an industry in the midst of significant reform and upheaval. "There's a lot going on right now," Mr. Hogan says. "I've been in healthcare for over 40 years, and it's probably the most changes in a small amount of time and the most pressures in a small amount of time I've ever seen in my career. Every day is a challenge." n HFAP 1039_Layout 1 10/4/11 4:05 PM Page 1 True Partnerships. " Our switch to HFAP was seamless. We began with a collegial and thorough survey process focused on quality and patient safety. Our relationship continues to be a cost-effective and educational partnership. " John M. Kosanovich, MD, MBA VPMA / Network Development Covenant HealthCare Saginaw, Michigan www.hfap.org info@hfap.org PUBLICATION: Becker's Hospital Review SIZE: Half Page 4/color APPEARANCE: 2011 Norcom Inc. 847-948-7762 theteam@norcomdesign.com

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