1. A NEW SOLUTION TO STOP THE STRUGGLE
WITH HEALTHCARE’S GROWING PROBLEM
© 2011 REVPAY ADVISOR, LLC
Jeffrey Lea, CEO, RevPay, LLC

2. Most healthcare businesses and providers struggle
with management of insurance-adjudicated and
patient-pay receivables because they lack both the
financial and human resources to pursue the high
volume of small-balance accounts on their ledgers.
In turn, the patients who owe these balances are
often frustrated in their efforts to understand the
complexities of the payer system and what they
themselves actually owe for the care they’ve
received. As a result, these accounts often push
out 120 days or greater, and providers end up
paying fees ranging from 25 – 35 percent of past-
due receivables’ value to collection agencies as a
solution of last resort for account reconciliation.
Optimizing your accounts receivable management
and patient communications systems can
dramatically improve the efficiency of your
operations, improve patient satisfaction with the
services your organization provides, and
significantly impact your bottom line by reducing
both bad debt and time to collect on patient- pay
and patient insured accounts.
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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION
© 2011 REVPAY ADVISOR, LLC

3. Health Care Finance News summarized the
report’s findings with the following statement:
Traditional healthcare billing models are designed
with economies of scale in mind to collect from
historically “best” payers- insurance companies and
government programs - and to prioritize efforts and
resources to collect larger patient-pay balances.
The constraints of such systems have a dual effect
of shifting focus of after-care support services from
the patient to the payer groups, and of sub-
optimizing collection efforts on larger volumes of
small-balance accounts.
As a result of both changes in the regulatory
environment and skyrocketing unemployment, the
population of patient-insured patients is trending
higher at an unparalleled rate.
In 2007, an estimated 25 million people between
ages 19 and 64 lacked adequate insurance - a
60 percent increase since 2003.1
Consequently, effective management patient-pay
account receivables is becoming tantamount to
survival in today’s hyper-competitive U.S.
healthcare market.
In a June 2008 report published by Health Care
Finance News, 94 percent of the U.S. healthcare
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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION
financial and operations officers surveyed
identified improving patient-pay collections as a
top priority, and 43 percent said patient-pay
accounts receivable were growing faster than
their organization’s billing function could handle.2
A Growing Problem
for the Healthcare Industry
of CFOs and COOs identify
improving patient-pay
collections
as a top priority
say patient-pay accounts
receivable were growing
faster than their
organization could handle
© 2011 REVPAY ADVISOR, LLC

4. An ultimate goal of all healthcare provider groups,
of course, should be to operate effective, efficient
billing systems that enable timely and clear
communications with patients.
Provider organizations that successfully effect
such change today are realizing powerful benefits
that deliver significant competitive advantage in
the market, including:
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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION
• 15 – 30 percent increase in
collection of patient-pay accounts
aged less than 90 days
• Up to 50 percent reduction of
bad debt on patient-pay balances
less than $500
• Dramatically improved data,
reporting, and tools to manage
patient-pay collections
• Increased patient satisfaction
with services
• Increased productivity of billing
department staff and job satisfaction
So why have most healthcare
organizations failed to achieve
this goal and realize such gains?
The answer is self-evident and clear: these
organizations lack time, money, or expertise to
do so.
Optimizing your billing function to deliver in
today’s and tomorrow’s - more patient-centric
environment requires more than just increased
focus on an under served segment of the payer
population.
It requires a solution that augments the capabilities
of existing billing staff, makes it easier for patients
to settle patient-pay balances sooner, and does so
in a way that delivers significant return on your
investment in driving this change.
Successful transformations will take into account
the unique needs of patient-pay and patient-
insured payers; the cost of new technologies;
training and education needs of staff; and the
cost and burden of ensuring systems compliance
with a dynamic regulatory environment.
Increasingly, provider groups are turning outside
their own internal billing and IT organizations for
help addressing this challenge- often with
dramatically successful result that goes straight
to the bottom line.
© 2011 REVPAY ADVISOR, LLC

5. To answer the Healthcare industry’s call for a
solution to the growing patient-pay collections
problem, RevPay Advisor has created a unique
set of web-based outbound patient communi-
cation and process automation technologies to
accelerate collection and resolution of patient-
pay accounts.
By automating much of the notification and
collections process for providers, RevPay
Advisor can reduce collections costs by 50
percent or more compared to live-call and
direct-mailing collections models.
Consider the chart to the right. As it illustrates,
the typical medical billing office collects only 25
percent of patient-pay accounts valued $500 or
less in the first 90 days A/R. This number jumps
roughly another 35 percent in the next 90 days,
after which time the remainder of these
receivables are sent to collection agencies for
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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION
• Automate and manage patient messaging
campaigns via plug-and-play web interface
• Proactively engage patient-pay account
guarantors using a variety and mix of media,
including voice, text, and email messaging
• Efficiently pursue collections across the full
spectrum of large to small balance A/R
resolution. In the end, almost a third of all smaller-
balance patient-pay receivables are written off as
“not worth” the effort or cost to pursue, and both this
revenue and sometimes even the patients
themselves are lost to the practice consequent to
the unpaid bill for care.
Optimizing your collections model with RevPay
Advisor by enabling providers to contact more
patients earlier in the collections cycle, and by
making it both easy and convenient for these
patients to pay via automated system or transfer to
a live agent, RevPay Advisor can double 90-day
patient-pay collections rates, and cut patient-pay
bad debt in half.
Resolution of Patient-Pay A/R (Balances <$500) 5
Typical Model
*5% Agency Fee in Typical Model. Only 2% with
RevPay Advisor, if accounts are sent to collections
© 2011 REVPAY ADVISOR, LLC
Features of RevPay Advisor:

6. References
1. “Strategies for Reducing Bad Debt,” Healthcare Financial Management, January 2009.
2. “Collectability of Self-Pay Accounts has Health Care Execs Worried,” Insight on Accounts Receivables
Management, June 16, 2008.
3. “Collectability of Self-Pay Accounts has Health Care Execs Worried,” Insight on Accounts Receivables
Management, June 16, 2008.
4. “The Impact of an Outbound Call System on Agent Productivity,” First Research, May 2009.
5. “Practice Perspectives on Patient Payments (Appendix A1),” MGMA Connection, April 2010.
On average, a mailed reminder letter costs a
provider between $0.40 and $3.00 depending on
the volume of letters it produces. Attempting to
reach patients live by phone is even more
expensive: across the U.S., placing a single live
call to a patient costs providers more than $5.80.
Now, for less than the cost of a single letter and
phone call to patients, providers can enjoy the
full compliment of RevPay Advisor’s suite of
services and solutions, with much greater result.
Optimizing your billing department’s patient-
pay accounts receivable collection model with
RevPay Advisor is easier than it may seem.
Start by contacting RevPay Advisor
at 1-(888) RevPay 1 or by visiting us online at
www.revpayadvisor.com to learn more.
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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION
For more than 35 years, the leadership
team at RevPay Advisor LLC has
delivered business process solutions for
hospitals and physician group practices
across the country.
RevPay Advisor, LLC
22942 Cleveland Drive, Ste 100
Parker, CO 80138
© 2011 REVPAY ADVISOR, LLC