the changing face of self payment in hospitals slide deck
DESCRIPTION
Zafar Hasan is posting the attached slide deck on self-payment in hospitals. Its a great deck.TRANSCRIPT
November 2009
The Changing Face of Self-Payment in Hospitals
HFMA’s Healthcare Financial Pulse
HFMA’s Healthcare Financial Pulse is sponsored by:
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Impact on Self-Pay Receivables
• Part I. What hospitals are experiencing• Part II. What hospitals are doing• Part III. Keys to success• Appendix A. Additional resources• Appendix B. Survey methodology
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Part I. What Hospitals Are Experiencing
Overview of Findings
• 97% of hospitals surveyed have experienced an increase in self-pay accounts receivable compared with prior fiscal year
• Small hospitals were most likely to experience a self-pay increase of greater than 10%
• Receivables are growing faster than patient revenue at almost one-third of respondent hospitals
• Emergency departments and unscheduled outpatient services are experiencing the most self-pay growth
• Difficulty estimating the cost of charges is a significant barrier to point-of-service collection
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Self-Pay Trends: Accounts Receivable
97% of respondents experienced an increase in self-pay accounts receivable compared with the prior fiscal year. Of these hospitals:
• More than one-third have experienced an overall increase of 10% or greater
• 39% have experienced a growth in self-pay balance after insurance of 10% or greater
• One in five have had a 10% or greater increase in bad debt write-offs
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Self-Pay Trends: Hospital SizeSmall hospitals (1-100 beds) were most likely to experience a self-pay increase of greater than 10%. Of these small hospitals:
• 45% experienced a greater than 10% self-pay increase, compared with 36% overall.
• 64% saw self-pay balance after insurance rise by more than 10%, compared with 39% overall.
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Self-Pay Trends: Receivables Growth as Compared with Patient RevenueReceivables are growing faster than patient revenue at almost one-third of hospitals. Only 10% indicate that patient revenue is outpacing receivables.
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Self-Pay Trends: Service Area
Emergency departments and unscheduled outpatient services are experiencing the most self-pay growth.
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Part II. What Hospitals Are Doing
• 72% of respondents report that they are devoting moderate or substantial efforts toward point-of-service collections in their facilities– Only 50% of hospitals that are shifting resources toward
point-of-service collections are seeing decreases in their cost-to-collect performance indicator
• Respondents are indicating that difficulty in estimating the cost of services to be received remains the most significant barrier to more extensive point-of-service collections
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More than half of respondents say difficulty estimating cost of charges is a significant barrier to collecting at time of service.
Self-Pay Trends: Barriers to Point-of-Service Collection
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Revenue Cycle Response to Market Trends
Respondents have increased accessibility of financial counselors and have increased collection activity
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Part III. Keys to Success
• People– High standards for hires– Compensation structures aligned to business goals and
employee satisfaction– Devote resources to education
• Process– Use formal structures to obtain stakeholder input– Target improvement around areas most affecting customer
experience
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Part III. Keys to Success
• Technology– Selectively use technology for high volume transactions– Maximize value of technology investments by improving
processes before automation– Consider dedicating IT staff to revenue cycles systems and
support
• Metrics– Seek the customers’ perspectives through surveys and
customer advisory panels – Develop and regularly report measures that span the entire
revenue cycles operation– Consider non-traditional metrics such as customer
satisfaction and employee turnover
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Part III. Keys to Success
• Communication– Support a positive scheduling/registration experience
– Provide estimates of financial obligations early in the patient interaction
– Publicize financial assistance
– Provide clear and simple billing and collections materials
• Culture– Organizational leadership support for the revenue cycle at the
highest level
– Demand high performance from staff across the revenue cycle
– Make innovation a priority
– Celebrate success
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• Research, how-to guidelines, industry analysis, and case examples
• New resources added regularly
Appendix A. Additional Resources
HFMA’s Healthcare Financial Pulse
Visit www.hfma.org/pulse
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A sample of the resources availableLeadership and planning• Key Legal Issues … as a Result of the Financial Meltdown (how-to guidelines)
• The Next Wave of Mergers and Acquisitions: What’s Your Organization’s Position? (how-to guidelines)
Cost and quality• Benchmarking Tools for Reducing Cost of Care (how-to guidelines)
• Case Study: Seamless Service Line Management (case study)
Preserving cash • Leveraging Business Intelligence for Revenue Improvement (case studies)
Capital• Financing … A Guide for Small Hospitals (how-to guidelines)
• Navigating Today’s Opportunities for Capital (how-to guidelines)
Visit www.hfma.org/pulse
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• E-mail survey sent October 2009 to revenue cycle leaders and executives in hospitals and health systems
• 92 responses received. Summary of hospital respondents:
Appendix B. Survey Methodology
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McKesson Corporation is the world’s leading provider of healthcare supply, information, automation, connectivity and care management solutions designed to reduce costs and improve care quality. McKesson solutions empower healthcare professionals with the tools they need to improve patient safety, reduce variability, and better manage their revenue stream and resources.
RelayHealth connects providers, payers, pharmacies, financial institutions, and patients to support quality care improvements and reduce administrative costs. RelayHealth’s proven financial clearance and settlement services enable you to effectively manage your payer reimbursement and self-pay patients from inception through resolution. RelayHealth securely processes over 12 billion financial and clinical transactions each year.
HFMA is the nation’s leading membership organization for more than 35,000 healthcare financial management professionals employed by hospitals, integrated delivery systems, and other organizations. HFMA’s purpose is to define, realize, and advance the financial management of health care by helping members and others improve the business performance of organizations operating in or serving the healthcare field. For more information about HFMA’s Healthcare Financial Pulse, visit www.hfma.org/pulse.
HFMA’s Healthcare Financial Pulse project is sponsored by: