2. by CSI Financial Services
Tackling the Growing Self-Pay Problem
For most hospitals, their mission is clear: to provide superior
healthcare services to the communities they serve.
However, in recent years, a perfect storm has gathered
strength and threatens the nation’s healthcare industry.
Consider the following statistics:
72% of hospitals report reduced operating margins;
50% of hospitals report reduced nonoperating income;
and 44% of hospitals report reduced access to capital
—American Hospital Association
64% of hospitals experience an increase in self-pay
balances AFTER insurance of at least 10%—HFMA
Financial Pulse Project
87% of hospitals reported an increase in bad
debt or charity care as a percent of total gross
revenue—American Hospital Association
75% of healthcare facilities report greater
increases to bad debt now than from the 2001
recession—TransUnion Survey
According to the McKinsey Research Group, the national
average for uncollected self-pay each year is 49.3%. Moreover,
patient self-pay receivables have more than tripled since 2001
and are now between 10% and 20% of expected hospital cash
flow streams.
Industry research also indicates that even the best paying
patients require an average of 3.3 statements before they pay
their bill, stretching a hospital’s time to collect to over 100
days. HFMA estimates that the average cost to send a single
statement is $10.
Looking for Answers to the Self-Pay Challenge
Healthcare finance executives are employing a number of new revenue cycle
strategies, including the implementation of patient-friendly loan programs to
extract value from a significantly undervalued asset: self-pay balances.
Introducing the ClearBalance Solution.
3. ClearBalance: A Track Record of Delivering Value
ClearBalance, by CSI Financial Services, is led by a team
of senior executives who have more than 75 years
of experience working in the healthcare and finance
industries. The ClearBalance team understands the
challenges facing its clients—particularly the ongoing
struggle of managing the day-to-day business
operations of a healthcare institution.
ClearBalance is the healthcare industry leader in providing
zero- and low-interest bank loans to patients with
Here’s what our program participants extremely affordable monthly payments. In fact, since 1992
are saying about ClearBalance: ClearBalance has provided bank loans to more than 500,000
patients nationwide with a 99% patient satisfaction rate!
“I wish to thank you for your assistance. If Featuring easy qualification criteria and no written
the need arises again, would it be possible application requirement, the ClearBalance program
to request your staff to handle (hospital assures that patients will quickly and easily qualify for the
issues) on my behalf?” bank loan program. In addition, there are no prepayment
—Roger from Indianapolis, Indiana penalties, origination fees or annual fees—further
ensuring patient satisfaction.
“I get such wonderful service every time I ClearBalance offers healthcare providers tangible,
call. I love to call in just to get help!” measurable benefits:
—Nancy from Arlington, Texas
Accelerating cash from self-pay receivables
“Thank you sooo much! The cancer really Reducing A/R days
scared me, but I thought the bills would
Preventing patients from going to collections
kill me. You’re a lifesaver!”
—Terri from Marion, Indiana Reducing bad debt by 20% or more
Eliminating the administrative headache of trying
to collect self-pay balances
Improving patient relations and satisfaction
With ClearBalance, healthcare providers can choose the loan
program that best fits their mission, financial objectives and
the needs of their patients. Loans
may be offered at any point or
at multiple points in the revenue
cycle—admissions, patient financial
services or in an automated fashion at
a specific time in the revenue cycle.
ClearBalance: delivering peace of mind to patients
and healthcare providers.
4. ClearBalance: The Financial Cure
for Healthcare Providers and Patients
As healthcare providers look for solutions to self-pay issues,
consumers are also struggling to balance healthcare costs
and out-of-pocket expenses including high deductibles and
copayments. ClearBalance has funded more than half a
billion dollars in patient loans, enabling hundreds of
thousands of patients to easily and affordably repay their
healthcare obligations.
Healthcare costs for a typical family of four
increased 7.2% from 2009 to an all-time high of
$18,074—Milliman Medical Index (MMI)
Employees contribute, on average, $5,300 a year for
family insurance coverage and $1,350 for individual
coverage—United Benefit Advisors
Financial experts believe that the recently enacted
CARD Act of 2009 will make it more difficult and costly
for consumers to gain access to credit that might have
been used to pay their healthcare obligations
The ClearBalance mission is to provide patient-friendly bank
loans that enable consumers to easily manage their out-of-
pocket medical expenses, while providing healthcare
providers a solution to help balance their revenue cycle.
ClearBalance’s customer service center, located
in its San Diego–based corporate headquarters,
provides its clients and their patients with best-
in-class servicing . . . all designed to help patients
meet their self-pay obligation and avoid going
through the collections process.
5. ClearBalance: Programs to
Benefit Healthcare Providers and Patients
ZERO-INTEREST FLEX Program EZ-FLEX Program
Patients pay no interest over an extended period Complement current revenue cycle
of time, dependent on the patient’s financial needs processes by offering an attractive
and account balance. The healthcare provider alternative to patients who cannot pay
has the flexibility to offer each patient a monthly their balance in one lump sum. Patients
payment he or she can afford. This is a critical receive a revolving line of credit with a low
part of reducing default, keeping patients out of interest rate and affordable monthly payments
collections and improving patient satisfaction. The as low as $20 per month (depending on balance
healthcare provider is funded upfront for patient size). The healthcare provider is funded upfront
account balances, and ClearBalance manages ALL for patient account balances, and ClearBalance
aspects of customer servicing. manages ALL aspects of customer servicing.
Patient Benefits: Patient Benefits:
Patient pays no interest or late fees Affordable monthly payments
Affordable monthly payments No prepayment penalties or punitive
interest rates
Consolidated statements for all amounts
due to the healthcare provider with the Resolve balance over time without
ability to add on obligations incurred at being sent to collections
the healthcare facility
Combine multiple accounts into one bill
Resolve balance over time without
being sent to collections Provider Benefits:
Provider Benefits: Healthcare provider determines
program’s interest rate
Allows flexibility to match monthly payment
to amount patient is willing and able to pay Increase cash collections
Reduce A/R days and bad debt Reduce A/R days and bad debt
Increase cash flow Expand payment options for patients
Statements are sent to patients in the bank’s Statements sent to patients in bank’s
name to further reduce default name reduces default
Improve patient relations
6. For Financial Peace of Mind,
Turn to ClearBalance by CSI Financial Services
ClearBalance provides valuable financial resources to healthcare providers
by offering bank loans to help patients repay their self-pay balances and then
services its customers with respect and dignity.
For additional information, contact us:
ClearBalance by CSI Financial Services
3636 Nobel Drive, Suite 250
San Diego, CA 92122
P: 858.200.9208
F: 858.200.9210
www.clearbalance.org