The following information has been adapted from Apex’s new white paper, titled “Reduce Patient Balances Sent to Collection Agencies: Approaching New Problems with New Approaches.” Follow this link to read the full report.
New approaches to statement presentment vary the content of each statement based on patient information and when in the billing cycle the particular statement occurs.
For example, it’s possible to apply “flexible logic” in the production of statements, so that patient-relevant messages about payment plans, other payment options, and online payment portals are most likely to have an impact. In addition to taking into account the age of the patient’s balance, the healthcare provider can optimize statements based on the patient’s payment history and demographics.
How much can varying statement presentation by cycle and patient data improve billing results?
Recently Apex conducted an internal study of a healthcare provider’s actual experience when first implementing cycle and segment-based changes in statement design and presentation:
- Over the course of six months, the provider’s collection yield increased 10 percent. Just over two-thirds (68 percent) was attributable to increased statement performance. The other 32 percent of improvement was due to an increasing number of patients choosing to pay online.
- Additionally, statement costs decreased by 10 percent. Taking improvements in yield and costs together, the provider’s annualized incremental benefit was $1.3 million.