You may never have used, or even heard of, a patient A / R clearinghouse. However, this service is every bit as important to your financial health as is your insurance claim clearinghouse and once you understand why, you will not even think of doing business without one.
A Patient A / R Clearinghouse provides a way to electronically aggregate Patient A / R and transmit patient statements via mail, secure email and / or text, protecting the patient's health information (PHI). Prior to statement transmission, the bills are scrubbed for accuracy of content and demographic information and using a vast database history, cash-flow receipt and timing are accurately predicted for the entire batch of patient bills.
Through the platform, the health organization can effectively manage, forecast, and optimize payment of their patient A / R as each receivable is broken out by different types of statuses / issues, resolutions, and payments, at an individual patient level, and as more billings are sent through the clearinghouse, the patient A / R recovery percentage (a key to calculating the Implicit Price Concession) for each new submission is more accurately determined.
Imagine having the insight of not only "how much" will pay from each batch of patient bills, but "when" the revenue will come in. That is the clarity this service provides.
Additionally, patient revenue is optimized as efficient and effective ways to answer patient questions are part of the service, thus removing the barrier to payment. A recent article in Modern Healthcare explains that patients that do not understand "why" they have a balance, will not pay. This puts the onerous on you, the healthcare organization, to (1) make sure the patient bill is correct, (2) make sure it is informative and understandable, (3) make sure you have an effective way to answer questions, and ( 4) to procure payment from the patients.
Since you currently have hundreds if not thousands of patients, each on different healthcare plans, with different deductibles, with differences regarding pre-paid deposits, with different levels of medical understanding and sophistication, with different communication styles, and with different schedules; all trying to understand "why" they have a balance due when they pay such high premiums for their health insurance, this is a daunting task to say the least.
The clearinghouse solution solves this problem by providing patients with a custom on-line resource center that unlocks the answers to their questions through frequently asked questions / answers, on-line chat, real-time email communication, and an 800 # to a live patient billing team – all tools patients use to receive answers needed to clear up questions and extremely pay the balance due. The on-line patient resource center also enables patients to manage their bills and pay via different electronic methods (online, email, text, IVR), thus speeding up revenue to your healthcare organization.
In summary, utilizing a Patient A / R Clearinghouse increases the financial well-being of your Healthcare Organization by:
Decreasing the Number of Patients Sent to Collections
Increasing Overall Patient Satisfaction