The financial stability of America’s healthcare system is under strain due to rising levels of uncompensated care, including patient debt. Each year, US hospitals face billions in costs from this burden.
The Price of Wellness
Medical bills have taken a toll on Americans’ finances. A recent study by the Kaiser Family Foundation reveals that 57% of US adults have experienced healthcare debt, and 40% are still dealing with these financial challenges. Yet, with new approaches and solutions, bad debt can be reduced by as much as 20% or more—providing significant relief to patients and professionals alike.
Patients with significant financial obligations often avoid preventive care, cancel necessary treatments, and fail to complete specialist referrals; Nearly 70% of professionals say patients will postpone care appointments because they don’t understand their costs or cannot afford them while 15% say these cancellations happen frequently, ultimately leading to poorer health outcomes.
Solutions for Addressing the Financial Burden
Here are several key approaches that can help healthcare organizations reduce bad debt while improving patient care:
1. Implement Patient Financial Assistance Programs Patients must be able to access financial support, such as flexible payment plans, financial counseling, and charity care options.
2. Optimize Revenue Cycle Management Innovative technology and data analytics are crucial in helping health systems reduce bad debt. By correctly identifying insurance coverage before service, the correct workflow is initiated. With newly fortified workflows in place, professionals can reduce administrative errors and improve cash flow using technological capabilities previously unavailable to them.
3. Strengthen Patient Engagement Patients are more likely to take responsibility for their medical expenses when they feel informed and supported by their healthcare professional.
4. Collaborate With Payers & Professionals By working closely with payers and other professionals, health systems can develop innovative solutions to reduce costs, improve care coordination, and enhance patient outcomes.
How Physicians Can Get Involved
By adopting a patient-centered approach, care teams can identify and implement innovative solutions that reduce financial burdens, improve patient outcomes, and ensure the sustainability of healthcare organizations. Physicians should encourage financial conversations and connect them to available resources.
