Changing consumer expectations, coupled with rising out-of-pocket costs, are making affordable payment options a more crucial issue than ever.
About 114 million Americans gave poor (30%) or failing (14%) grades to the U.S. healthcare system, according to the 2022 Healthcare in America report from Gallup and West Health. Affordability is a major factor in the low scores, earning a grade of ‘D’ or ‘F’ among three-fourths of respondents.
The industry's low collection rate on patient balances is, at the root, an ability-to-pay problem. When more affordable payment options are given to patients, revenue capture - and patient satisfaction - increases substantially.
CVSHealth’s Health Care Insights Study 2022 offers insight on how affordability impacts more vulnerable patient populations:
Half of respondents had “high to moderate concern” about the cost of their care. That concern was greater among Black and Hispanic patients.
9 out of 10 providers who responded said the cost of care is a top concern for patients aged 65 and older.
Higher out-of-pocket costs for patients hit hospitals hard as well, in the form of lower collection rates and higher bad debt.
In fact, a 2022 report from Crowe Research shows that bad debt from self-pay after insurance has increased five-fold in just three years.
It’s clear that patient affordability is the core issue providers must address. In doing so, we can view the financial experience of patients and providers as two sides of the same coin. That’s because there’s a direct link between helping patients pay for care and improving collections.
Now, let’s assess financing options that promise to solve this dual issue. 👉
