Becker's ASC Review

36 Coding & Billing L arge deductibles and out-of-pocket costs may cause patients to delay or decline rec- ommended orthopedic treatment. What can you do to ease patient cost concerns and help them move forward with the care they need? Rob Morris, Vice President of marketing for CareCredit, explains how adding a patient financing program to your financial policy can benefit both your patients and your orthopedic practice. Question: Why should an orthopedic practice consider adding a patient financ- ing program? Rob Morris: Most orthopedic practices have a fi- nancial policy in place that requires payment by cash, check or major credit card for out-of-pocket costs. However, in today's economic environ- ment, patients appreciate and have even come to expect additional options from healthcare providers when it comes to managing the cost of care. Adding a patient financing program to your financial policy allows you to make a financial solution available to patients without taking on responsibility for in-house billing. Q: Why do you feel adding a patient fi- nancing program through a third-party is a better option than billing patients in- house? RM: When orthopedic practices take on the re- sponsibility of billing patients in-house, they incur the cost and risk associated with it as well — including late payments and uncollected ac- counts. And while nearly every healthcare pro- vider has some degree of accounts receivable, in- house billing can have a significant impact on a practice's bottom line. In fact, when you consider the investment of time and resources to process payments, track down late payments and make collection calls — the cost can be considerable. In addition, when attempts to receive payment are unsuc- cessful, the resulting uncollected accounts can become a bad debt write-off that can further impact the practice financially. Extending credit to patients in-house can also be expensive to your practice in terms of reduced cash flow and money sitting on the books. Some level of accounts receivable may be seen as a nec- essary part of doing business, but while fees wait to be collected, overhead costs such as payroll, rent, supplies and equipment, continue to add up. Within just a few short months, a practice could find itself in a cash flow strain, with more money tied up in accounts receivable than coming in. When financing is available through a third-party financing program, it enables the practice to focus less on accounts receivables and related adminis- trative activity and more on helping patients get the treatment they need, and everybody main- tains their financial health. Q: How does third-party financing work? RM: Using a third-party financing program is easy. The practice enrolls. Patients apply for credit directly with the financing company and, after the patient is approved, the provider is charged a processing fee for the transaction as with any credit card. (The fee may vary based on the type of financing used or the company the practice works with.) In most cases, the practice receives payment in full directly from the third-party financing company. Because it's easier to fit the cost of care into a month- ly budget, many patients prefer this option in order to move forward with recommended treatment. Q: Is third-party financing widely used? RM: Absolutely. For example, the CareCredit healthcare credit card is currently accepted at more than 180,000 healthcare providers nation- wide. It's one of the leading third-party financing options and has been used for years by health- care providers in many different fields, including ASCs, dentistry, ophthalmology, optometry, cos- metic surgery, audiology and veterinary care. Q: What should a practice look for when choosing a company to work with? RM: Because financial needs differ from patient to patient, you want to select a patient financing company that provides a variety of options and meets the needs of today's patient. Companies that provide options such as special financing for six or 12 months* on qualifying purchases of $200 or more are popular with patients. Companies that offer a simple and quick application process, fast credit decisions and multiple processing op- tions for your office make integrating third-party financing into your daily routine even easier. Q: How and when does the practice get paid? RM: One of the key benefits of making financ- ing available through a third-party is that you are paid for your services upfront, eliminating the need to bill the patient. However, not all com- panies are the same, so be aware that some may pay the practice within two days, while others can take much longer. That's why it is important to understand the policy of the financing company you choose and how the payment will be deliv- ered. For example, direct deposit to an authorized account may be the most efficient method. Q: Getting team buy-in is important when introducing any new program or proce- dure. How should a practice introduce patient financing to the team? RM: You're absolutely right. Once you have added a patient financing program, it's critical that your team is trained and that everyone understands the terms, options and processes. It's also helpful if team members practice with scripts and conduct role-playing, so that they are comfortable pre- senting and explaining financing in a consistent manner to all patients. Your team can be a major resource to help edu- cate patients about payment options available in your practice and should be comfortable inform- ing or reminding patients that financing is avail- able. Look for a program that provides enrolled practices with free patient brochures, counter signs and other display material, as well as sup- port for your internet and online marketing ini- tiatives to inform patients about your practice's available payment options. Q: How should an orthopedic practice in- troduce financing to patients? RM: A practice can educate patients about their financial options throughout their visit, starting with the time the appointment is set and when the patient is researching your practice online. In-office education includes displays, signage and brochures in the waiting room. During the con- sultation, the team can proactively present financ- ing to patients to address cost concerns they may have and help them to move forward with recom- mended treatment. Be sure to discuss the benefits to patients, includ- ing the ability to make monthly payments (sub- ject to credit approval) and any specific program benefits such as no upfront costs or annual fees. Here's an example of how a practice can intro- duce financing options to patients during the consultation: "Mr. Jones, the cost for the procedure we've dis- cussed is going to be $3,900. We anticipate your insurance benefits will cover $3,100, leaving you with an out-of-pocket expense of $800. We have several convenient payment options to help you get the care you need. Let me go over them with you. Of course we accept cash and checks. We also accept Visa, MasterCard and American Express. If you are approved, special financing options are also available, and you can make monthly payments. Many of our patients really appreciate this alternative. We can take a look and see what your monthly payments might be. Would you like more information about this?" Q: Are there other advantages to making patient financing available? RM: One advantage that is often overlooked is the fact that it can also be used as a marketing tool for the practice. Most patient financing companies pro- vide free promotional materials, including patient A Payment Solution That Benefits Your Patients and Orthopedic Practice

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