How Card on File Payments and Payment Plans Increase Revenues
The current medical revenue management cycle is plagued by overdue accounts receivables and an existing system that is not sustain-able. The increase in High Deductible Health Plans (HDHPs) has prompted a shift to greater patient fiscal responsibility. The deviation from government and commercial collections has left the revenue cycle unsettled and difficult to manage in its current state.
Patient accounts receivables and patient bad debt write-offs are at astronomical levels, with a cost of patient collections that is almost unaffordable. Research shows that over 25 percent of hospital leaders and over 10 percent of practice respondents indicate the average patient takes longer than six months to pay their balance in full.
The major hike in patient payment obligations has left the healthcare industry scrambling to find a more patient-centric approach to collecting patient payments.