Collecting Healthcare Debt in an Unstable Economy

        With the current state of affairs in the financial world - stock market, interest rates and
          lending issues, many healthcare providers can't help but wonder how their bottom line
          will be affected. Out-of-pocket healthcare costs continue to rise and patients will have
          increasing difficulty paying their debt.

          In the recent past consumers were able to pay out-of-pocket healthcare costs in a
          number of ways. Many tapped into the newly-found home equity during the housing
          bubble by refinancing their homes. Now that the housing market is in the middle of a
          significant crisis this resource is on longer viable.

          Working to compete with the home mortgage market, standards for unsecured debt
          (credit cards) was loosened which allowed many to use credit cards to pay their
          healthcare debts. However, as we see the lending market tighten, many credit card
          issuers are also cutting back on offers to less creditworthy customers and many are
          lowering credit limits.

          There is less discretionary income to spend and payment priority goes to mortgage,
          credit card and auto, leaving doctor and hospital bills at the bottom of the list.

          Here are some ideas that may help you with your collection efforts:

          1. Automate processes and improve customer service.
             It's no secret that patient financial services is usually understaffed and overworked.
          Provide the best technology to increase productivity and assist in meeting patient
          needs. Put programs in place to assist those patients needing financial assistance -
          be flexible with payment options. This is one area where you will be able to
          reassign staff to more productive projects.

          2. Offer a variety of patient financing options.
            With consumer credit tightening, patients will need to be more aware of the
          financing options you offer. Competitive loan solutions and credit programs will all be
          important pieces of the puzzle. Some patients may not qualify for bank loans so
          remain flexible. Patient-focused counseling and collection practices will benefit
          not only your staff but the patient as well.

          3. Develop charity guidelines and make sure all staff are trained.
          By identifying and qualifying patients for charity care you will improve your overall
          collections. Charity care requires time and effort. Using credit scoring or similar
          programs will quickly identify these patients.

          4. Develop your internal collection policy and make sure all staff are trained.
            All hospitals have collection guidelines but from time to time many will make
          exceptions to policy. Remember you are not in the business of lending money -
          you are in the business of healing people. Work within your established policy.

            5.  Outsource.
          Take advantage of the technology and services that come from a third-party source.
          No hospital department can or should carry the burden of monthly collection
          activity. By working with a partner organization you will have access to a variety of
          options that will impact your financial bottom line.

          6.  Partner with those who have experience in patient finance.
            To ensure the best outcomes for you and your patients you should partner with
          organizations that have direct experience in healthcare patient finance. A lack of
          industry knowledge and experience in the delicate nature of healthcare can not
          only create an unfavorable result for you but for the patient as well.

          Putting these ideas to work will help you meet the hospital's mission and secure
          positive outcomes for your patients during these unstable economic times.