Payment Plans at Your Medical Practice: What Works
Payment Plans at Your Medical Practice: What Works
It’s no surprise more patients are on payment plans these days, not just with hospitals but medical practices.
Whether it’s because their insurance covers less than it used to or they can’t afford insurance in the first place, many patients at some point in time can’t pay a medical bill in one lump sum.
Still, some payment plans are better than others.
I say this from experience, having been enrolled in multiple payment plans. One local hospital’s plan is great — a certain amount is deducted from my bank account every month, and I have the option of lowering or raising that amount at any time. But other practices I’m working with aren’t so efficient: For one, I had to verbally negotiate them down from what they originally wanted me to pay, sign a payment form and mail it back, and then remember to write and send a check every month.
This raises a question for medical practices: What makes a good payment plan?
Bill Marvin, president and CEO, InstaMed, said a good payment plan allows the physician to collect and securely store the patient’s payment information, and then automate scheduled payments according to the patient’s budget and the physician’s parameters.
“E-mail notifications should also be automated to remind patients of each upcoming payment,” Marvin told Physicians Practice.
However, a lot of physicians still support payment plans by managing a calendar of when each payment is owed and calling patients to collect each payment manually every month.
“This method makes payment less of a burden on patients, but it adds to the physician’s administrative work,” said Marvin. “Plus, it still does not ensure payment for the physician. Whether physicians set up the payment plan while the patient is in the office or after sending the statement, physicians need to securely collect payment information to automatically collect payments when they are due.”
Brian Clubb, senior director of product management at Emdeon, said the ability to secure a payment at the point of service or within the first 30 days of the billing cycle is crucial, and automatic payment plan tools are a great option. Another trend he is seeing is offering a “prompt pay discount” for patients who secure payments in full.
“Prompt pay discounts can accelerate cash flow and reduce downstream cost of collections even more so than a payment plan,” said Clubb.
That said, “one of the key items I would look to in a payment plan is to ‘automate’ it,” said Clubb, noting that there is technology available that removes the need to write card and banking account information on paper and save in a file for future use.
This article was very helpful thank you.
Catherine, do you send past dues to collections? I write on statement1: you left and didnt stop by front desk, this bill is your responsibility, you can call wth your credit card or mail a check today. Statement 2: this is your second bill-this is your responsibility (if deductible/copay/coinsurance we say which) please remit now as after 3 months of non payment accounts go to collections. Statement 3: we have billed you since x (date) and we havent received payment as requested or a call from you. Pay by x (date) or this will be sent to collections on that date. And we do send. And they usually call irate aboit being threatened with collections but I explain we sent bills which since we did not hear from them we felt we were being ignored we had no recourse but to send to collections and they pay. Of course they say they never received other bills but its interesting how they got the last threatening bill. We are an office of 4 including the doc and we don't have time to chase after people who feel its not worth their time to pay the doc.
Also it was great when you could get a patients credit card to bill monthly an agreed amount.
Our patients will say they don't have the copay on them and ask to be billed.In some cases we end up billing abd calling for months until we get payment and there are others who ignore bills totally and never return. This also happens with deductibles. We are a small 1 doc office and I do it all from training staff to coverage to a/r and a/p to purchasing, and all billing. I do not have enough time to chase down people who when I do get them on the phone, are nasty and abusive and refuse to pay for some excuse or another. They don't want to hear its their obligation. A lot of people tell me they thought insurance covers everything and even though they got bills and calls, they thought it would be paid. I cant write them off-they go to collections.
Do you collect their copay or any amount owed before or after they see you? We collect before they are roomed in. If someone claims they forgot their wallet they are given the option to go home to get it and reschedule the appointment for a later time. When they make their apppointments they should be informed how much they owe for visit and other amounts. That way they come prepared and avoids "misunderstandings".
The pronlem is theres a noncovered test we do at times and its the decision of the dr when to do it. I cant take that payment before the visit and to bill twice a visit will ipset this customer base. Another issue is patients who leave after seening the dr without seeing the front desk staff although the dr leaves them at the desk, when the staff is on the phone or has stepped away for seconds to put a file away or get a chart for the dr.
I have done "payment plans" through my office. But, unfortunately, there are some patients that feel a "payment plan" means "optional". Signed contracts don't mean anything. Then the patient is upset when you call for a missed payment, or 2, or 3. I have recently switched over to a medical only "credit card" option that allow 18 months interest free (to the patient; I pay 10%). Even this is unacceptable to some patients. I realize times are tight, but when I look at a potential reimbursement that will take 120 months, I cannot afford to hold this in my office account.