5 Proven Strategies to Improve Patient Engagement and Revenue Cycle Efficiency

It is a strange paradox. As the healthcare industry transitions to integrated and profitable business models, the revenue cycle for medical practices has become more fragmented and costly.

Cuts in payer reimbursement, dramatic increases in consumer payments, and regulatory changes are challenging traditional, outdated approaches to revenue cycle management. According to a survey conducted by PwC, one in two Americans rates hospitals poorly for affordability of services and price transparency.

To survive in the New Health Economy, care providers must focus on patient care. But there are bills to pay to keep the lights on! Fortunately, a healthy revenue cycle and good patient care no longer have to be mutually exclusive terms. There are ways to build a strong and sustainable revenue cycle while still focusing on patient care. Here are five ways healthcare organizations can stay successful in the consumer-led healthcare environment.

5 Ways You Can Increase Patient Engagement & Revenue Cycle Efficiency In Your Medical Practice!

1. One in four claims are denied due to insurance eligibility errors and incomplete information.

• Discuss insurance details, coverage limitations, and treatment options with your patients prior to their appointment. Maintaining a friendly relationship with patients will allow you to gather accurate eligibility information.

St. Luke’s Hospital was able to increase charges by calling patients in advance of their visit and discussing price estimates. This system has helped the hospital educate patients about their financial responsibility and increased net collection.

2. Improve the patient billing experience. Straight out of a can, patient statements and sporadic follow-up calls won’t do. Financially engaging patients is vital in the post-reform climate. High-deductible health plans pose a major challenge for care providers. Explain the patient billing process and payment options. before the service begins and simplifies the transaction as much as possible.

• Create patient statements that are unified. Translate complex codes into simple language
• Add financial details outside of the episode of care, such as copays and deductibles
• Discuss patients’ financial responsibility for high-value, pre-scheduled procedures.
• Provide payment options according to the convenience of patients. Offer multiple payment options such as net banking, check, credit card, or internet banking.
• Offer different payment plans and educate patients on the same
• Create a financial assistance policy and collaborative process based on your patient’s needs

3. Tired of managing absences? According to MGMA, medical practices experience an annual no-show rate of 5-8%. With an average of $150 per appointment, the amount of dollars lost can add up to thousands each year.

• Shoot an email or talk to patients during their next appointment about how inconvenient absences are. Case in point.
• A group of doctors, based in Minnesota, was battling no-shows and inefficiencies in appointment scheduling. A personal email from the provider to the patients, who did not show up, worked. The physician group was able to decrease no-shows and significantly increase patient volume.
• Remaining mailing reduces no-show rates by up to 36%says a study in the Internet Journal of Healthcare.
• Some medical practices reward patients who show up on time and offer a small discount also. By making known small rewards to patientshealthcare organizations can not only reduce the number of no-shows, but also build a loyal patient base.

4. Did you know that the possibility of charging drops to 40% once the patient leaves your office? Medical offices collect only 60% of patient copays.

• Train patient access staff to collect more at the front desk. In today’s environment, medical practices cannot afford to be lax about patient finances.

A San Diego-based healthcare provider installed 27 kiosks in its 11 clinics. The kiosks were installed to increase patient participation. The surprise result of install the kiosks was that an increasing number of patients began to pay back bills. Following a similar strategy in your organization can not only boost patient engagement, but also ensure that you collect payments from patients without much effort.

5. Human resources represent 56% of the operating costs of a supplier organization.

• Reduce collection costs and improve net collections by empowering patients. Patient self-management may be the answer to some of the most perplexing questions facing care providers. Encourage patients to enter data into their own records, tell them about patient portals, and help them design a plan to manage their healthcare costs.

A 2012 survey indicates that 79% of respondents would like to see healthcare organizations conduct interactions with patients online or via mobile phones.

Small steps in the right direction can help medical practices develop an architecture that increases patient engagement and improves revenue cycle efficiencies.