Outsourcing Payment Plans May Help Healthcare Providers with Cash Flow

About 56 percent of patients delay paying their medical bills because they can’t afford them. This is mostly in part due to the high deductible plans that most Americans now carry for their health insurance. With that and the fact 58 percent of Americans have less than $1,000 in savings, Healthcare Providers are seeing more scenarios daily of patients not being able to resolve balances in full.

With that in mind, it’s no surprise that Healthcare Providers often struggle with cash flow. If people can’t pay their bills, they aren’t going to pay on time. Meanwhile, the Providers must pay their bills, from supplies to salaries, to remain open.

Payment plans are a logical option, giving people a chance to pay their medical debt over time like they would for a car or many other large purchases. Payment plans are a better option for the consumer than credit cards, typically offering a lower interest rate.

While you can find language online to put into a payment plan contract, Healthcare Providers often find setting up payment plans troublesome. Plans are more work to put them into place than one might guess and requires substantial capital. Internal staff often struggle with:
Detecting missed payments
Duplicate billing
Payment processing issues

Even after setting up payment plans, providers still need a process in place to then turn over non-paying accounts to collections.

What to Expect When Outsourcing Payment Plans
Many health organizations find it financially smart to hire a third party to manage payment plans. Companies such as Capital Recovery that offer payment plan solutions have all the logistics in place to get started quickly and can easily transfer the account to collections if needed.

If you’re seeking an outsourced solution, here are some things to ask about or to look for in a financing partner:

What does their fee include for this service?
Do they have in-house payment processor?
Do they have an Extended Business Office solution that represents you, the client, in order to present a seamless extension of your medical practice?
What is the process for follow-up once payment plan is established?
Are letters, emails, phone calls made when payments are missed?
Can they administer finance fee for payment plan?
Do they offer collection services in the event payment plan goes into long term default?

If your administration is considering how to offer payment plans to patients, please contact us to learn more about how Capital Recovery would answer these questions and get you on the right track for a payment plan solution that serves as an extension of your medical practice and an even better impact to your bottom line!