Managing the cost of healthcare continues to be a top concern for consumers and healthcare providers alike. Here are three strategies providers should use to improve self-pay receivables and increase patient satisfaction

1. 3 Strategies For Healthcare Providers
HOW TO IMPROVE FINANCIAL PERFORMANCE
WHILE INCREASING PATIENT SATISFACTION

2. In a time of unprecedented change,
managing the cost of healthcare
continues to be a top concern for
consumers and providers alike.
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3. 3
Premiums and deductibles for both
employer-sponsored and ACA
health plans have continued to rise.
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4. Last year, the cost of healthcare for a typical
family of four, covered by an average employer-
sponsored health plan, was more than $25,000…
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5. …and deductibles for the most popular ACA plans
have soared
5Source: Health Pocket, HFMA “Leveraging Technology in the Patient Payment Experience”
Increase in Deductibles (Individual Coverage)
Bronze
Silver
Gold
$11,601
$6,480
$2,535
Average 2016 Deductibles (Family Coverage)

6. 6
55% of all Americans are worried they will be overwhelmed by medical debt
25% of people surveyed say they now owe more in medical debt than they
currently have saved in an emergency fund
Medical debt is the #1 cause of personal bankruptcy
Source: Bankrate.com, Harvard University
As a result, out-of-pocket costs for consumers have
sky rocketed, making medical debt a serious and
growing problem

7. 7
It’s no surprise that lowering out-of-pocket costs
is the top priority for a majority of Americans

8. 8
Net
Revenue
Bad
Debt
For healthcare providers, when patients can’t
pay or payment is delayed, financial health
suffers
Days in AR

9. 9
Self-pay receivables have taken on a
growing level of importance for providers…
Source: MGMA, instamed, HFMA

10. …because collecting payment from consumers
presents a different set of challenges, especially
when compared to traditional payers
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Source: McKinsey: Hospital Revenue Cycle Operations

11. The traditional patient billing process itself
drives patient satisfaction down even further
Source: McKinsey, 2015 Hospital Consumer
Awareness of Healthcare Providers and Systems
Survey (HCAHPS)
Patient satisfaction falls by more than 30%
between discharge and the final billing process
81% of patients say they are frustrated or angry
at least to some extent about their medical bill
11CONFIDENTIAL

12. 12
Although the challenges are
daunting, solutions exist.
12

13. Here are three strategies providers should use
to improve self-pay receivables and increase
patient satisfaction
13

14. 14
Strategy #1
Increase Point of Care Collections
Improving point of care collection starts with having a clear and open dialogue with
patients about their payment responsibility, as early as possible in the relationship.
To do this, provider personnel must understand what to say and when to say it, whether
that is prior to, during or after service.
You can start by documenting a point of care collection policy and communicating it not
only to staff but also to patients. This helps set expectations and reduce surprise situations
that can create patient dis-satisfaction.
Next, create standardized “talk tracks” or scripts designed to help your team more
comfortably and professionally ask for payment up front.
Once these things are in place, consistent delivery is the key. Make sure that ongoing
training for staff members is a priority.
The Healthcare Financial Management Association (HFMA) recommends setting a goal of
1-3% of net patient revenue to be captured at the point of care.

15. 15
Strategy #2
Offer Patient Financing Options
Alternative financing options, like an interest-free payment plan, can help improve a providers
financial health and increase patient satisfaction.
Partnering with a specialty finance company who offers a full-service payment plan solution
can be very beneficial.
First, a payment plan provider will manage the entire process on your behalf including patient
enrollment, arranging financing and managing all ongoing customer service. This can
significantly reduce your administrative costs.
Also, the payment plan provider will typically settle the patients outstanding balance with the
provider upfront then collect the amount due directly from the patient over time.
For providers, this can significantly reduce days in AR, improve cash flow and ultimately
reduce bad debt.
For patients, the financial burden of an outstanding balance is eased, creating peace of mind
and a higher level of overall satisfaction.

16. Transform Your Billing Process into a
Patient Engagement Opportunity
Strategy #3
Patients often have more contact with a provider regarding billing and payment than they do
regarding their care. For this reason, leading providers have transformed the traditional
billing process into a patient engagement opportunity.
To do this, providers need to move beyond just mailing a monthly statement and providing a
customer service number to call for assistance. Instead, introduce multiple options for how a
patient can engage during the billing process and let them choose the methods that work best
for them.
This might include offering paperless billing, account notifications and ongoing
communications via email or SMS/text messaging, automated payment by phone options and
of course, online patient account access and management.
When patients are presented with options and given a choice, it creates a more personalized
experience. This can help increase satisfaction and actually improve the overall rate of self-
pay collection.
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17. The healthcare industry has a long way to go to reduce
cost and improve patient satisfaction, but providers can
make big strides in the right direction by using these
three strategies.
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18. Contact us to learn more about Budco
Financial and our payment plan solutions
Jeff Sierra – President, Healthcare Solutions
jsierra@budcofinancial.com
313-209-3326 (O)
Dan Rowell – Vice President, Healthcare Solutions
drowell@budcofinancial.com
313-209-6227 (O)
Budco Financial
333 West Fort
Suite 1750
Detroit, MI 48226
www.budcofinancial.com
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Budco Financial is recognized as one of the industry’s leading
providers of end-to-end payment plan solutions.
Our Medical Payment Plan allows healthcare providers such as
hospitals, clinics and healthcare systems to offer their patients an
affordable option to pay out-of-pocket medical expenses.
Our approach helps providers improve financial performance and
increase patient satisfaction.