Self-Pay Patients are Effecting Your Bottom Line and Decreasing Your Revenue

There has been much debate and scrutiny over Obamacare, leaving many Americans with unanswered questions pertaining to their insurance coverage and their options. But what about the providers? Historically healthcare providers and provider organizations are use to grappling with Medicare, Medicaid and insurance companies for claim reimbursement, but now there is another wrench in the works with the dramatic increase in self-pays. Many providers are struggling to keep up with the new unique financial challenges that self-pay claims create and identifying these patients prior to rendering service and accurately collecting their payments before exiting the office after the encounter. Studies prove that once a patient exits the office without paying their balance that the money owed has a very high likelihood of becoming bad debt. Between 2008 and 2012, multispecialty practices saw their bad debt go up 14 percent, according to a survey by the Medical Group Management Association (MGMA), a trade organization for doctor practices. That’s money that practices were owed but couldn’t collect. Some of them have begun to change their billing strategies to combat those debts, says Ken Hertz, a principal consultant with the MGMA Health Care Consulting Group.

There are solutions, by either outsourcing to a early-out billing company, using price transparency software or by implementing new practices and standards in your office, EHR & Practice Management Consultants, Inc. (www.ehrpmc.com) can assess your practice to better understand which of these options is the best solution for your Practice. We can offer creative solutions to help patients meet their financial obligations and thereby increasing your cash flow and revenue stream. Let us help you by contacting us at 1-800-376-0212 or contact@ehrpmc.com

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