MD Clarity’s Post

View organization page for MD Clarity, graphic

3,198 followers

A 2024 study finds that 48% of healthcare leaders report that their biggest challenge for this year will be – not denials — but collecting from patients. 😧 They should be concerned. Given the increase in high-deductible health plans and the number of self-pay patients, 30% of provider revenue now comes from patients. Before the Affordable Care Act when just 10% of revenues were patients' responsibility, providers could be more lax about pursuing delinquent accounts. Now, getting that money is critical to practice and group viability. In 2021, consulting and technology firm Crowe LLP raised the alarm when it surveyed daily transactions from more 100,000+ physicians nationally and found: ⬆️ patients who owe more than $7,500 more than tripled from 5.2 percent of all accounts in 2018 to 17.7 percent from 2018 to 2021. ⬆️ patient balances higher than $14,000 almost quadrupled from 4.4 percent of all accounts in 2018 to 16.8 percent in 2021 The trend persists today. A 2024 Kodiak Benchmark analysis of 250,000 physicians, showed a dramatic decline in patient collection rate – 54.8% in 2021 to just 47.8% in 2022 and 2023. Surprisingly, 53% of provider bad debt write-offs come from patients with some form of health insurance. The total dollar value of provider bad debt write-off in 2023 hit $17.4 billion. What can a healthcare organization do? Collect more upfront. 💰 Use automated eligibility verifications and estimate generation to get your revenue in on the front-end, so it doesn’t become bad debt. MD Clarity’s Clarity Flow automatically builds and sends your estimates, providing the healthcare pricing transparency patients today demand. These estimates include convenient links and a range of payment options so patients can easily send in a deposit or prepay the entire estimated bill from home. Nearly all service businesses collect something upfront. The time is now for providers to do the same. #revenuecyclemanagement #upfrontcollections #rcm [Sources: Salucro Healthcare Provider Fintech Insights Report, HFMA The Patient as the New Payer, Kodiak KPI Benchmarking Reports, Crowe LLP Hospital Collection Rates for Self-Pay Patient Accounts]

  • No alternative text description for this image
Alan E Edwards, MD

Chief Medical Officer @ Bucktail Medical Center | MD

3mo

So true but getting the hospital staff buy in is difficult because they believe it’s hurting the patients Lots of education needed AEE

To view or add a comment, sign in

Explore topics