An emerging best practice in healthcare billing is varying bill presentment and payment options based on two types of variables: (1) patient information, and (2) timing during the billing cycle. The purpose of these variations is improving self-pay performance.
How much can this variation improve billing results and affect a healthcare provider’s bottom line? Apex recently conducted an internal study of one provider’s actual experience when first applying variations based on billing cycle and patient details:
- Over the course of six months, the provider’s collection yield increased 10 percent. Of that improvement in yield, 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 make online payments.
- Additionally, statement costs decreased by 10 percent. Taking improvements in yield and costs together, the provider’s annualized incremental benefit was $1.3 million, or $105,000 per month.
In conclusion, strategic changes to statement presentation can help providers increase the return on each batch of statements presented to patients. Overall billing results improve as providers maximize patient payments early in a billing cycle, reduce statement-related costs, and minimize balances eventually forwarded to third-party collection agencies.