Becker's Hospital Review

12 Executive Briefing "Healthcare organizations are throwing bodies at revenue cycle problems — they are building out the billing department, they are throwing headcount everywhere to maximize the likelihood of getting paid," Mr. McHugh says. "Yet the technology exists today that can minimize the risk of not getting paid and maximize reimbursement for services rendered — and with far less overhead." 3 digital solutions driving patient financial experience and providers' bottom lines Digitizing patient collection strategies using automated tools is crucial to facilitate faster payments and a higher collection rate. Here are three ways technology can overcome self-pay challenges. 1. Price estimation. "If you can reduce friction before the patient walks through your door, then you're one step ahead of the game," Mr. McHugh says. "The way to do that from a financial perspective is to emotionally prepare [patients] for what they're going to owe before they arrive." Helping patients understand what they owe, and why, is key to developing an action plan for patient collections. In fact, a 2016 survey by HealthEdge linked increased price transparency to both improved patient satisfaction and patient payment rates. Giving patients accurate price estimates on the front-end — rather than expecting them to use online estimators at home — ensures patients understand their responsibility and gives them time to prepare, thereby improving providers' likelihood of receiving payment. 2. Assessing propensity to pay. What a patient owes and what he or she can afford may differ. Tools that forecast patients' ability to pay can be just as valuable as price estimators for providers in developing more effective collection strategies. These tools help organizations fine-tune the financial counseling aspect of making payments by determining a patient's likelihood of paying out-of-pocket expenses based on credit history and past payment behaviors, among other factors. This knowledge enables patient services employees to connect patients with appropriate payment options or financial assistance in advance of services. Some organizations have used propensity to pay to drive cash flow between 10 and 30 percent. Mr. McHugh sees significant opportunity for growth in this area. Only 14 percent of providers use advanced modeling tools for predicting patients' propensity to pay in 2017, according to a survey of 125 CFOs and revenue cycle executives. 3. Flexible communication infrastructure. Patient financial engagement means understanding your patient population's diverse needs and what your organization is doing to meet each patient where they are, Mr. McHugh says. For instance, baby boomers may want a printed statement with the option to speak to someone on the phone about their bill before writing a check. Millennials, accustomed to ordering services through digital devices, may be more comfortable interacting with the revenue cycle using a mobile app rather than speaking to a patient services representative. Using patient demographics, providers can enhance patient financial engagement by investing in flexible communication strategies that put patients in control of their financial interactions. "[Zotec patients] basically control the mode of their financial point of contact," Mr. McHugh says. "If we text a patient a link to set up their own payment plan and we don't get a reaction, then we will go to other modes of communication, be it verbal or via mail." By providing patients with a range of communication channels and opportunities, patients are more likely to engage with the channel that works best for them, thereby improving patient engagement and providers' chances of recouping payment. Picking the right financial partner Taking the time to make provider-patient financial communication more efficient and cost-effective can yield tangible benefits for healthcare organizations, including improved patient collections at the point of service. Choosing the right financial solutions partner is key to satisfying parties on both sides of the table. "[Zotec] differentiates itself as a revenue cycle management partner that focuses on the patient first," Mr. McHugh says. Zotec's solutions help providers support their patients with improved financial experiences, which gives patients peace of mind while strengthening providers' bottom lines. "Financial relationship management tools ensure the sanctity between provider and patient remains intact," he adds. "The patient has their health, and their doctor gets paid. In the end, the results positively impact the relationship and keep it moving forward." 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. Currently, Zotec Partners serves more than 9,000 phy- sicians in all 50 states.

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