Four Important Healthcare Payment Trends

To better collect payments, it’s important to understand your patients. These industry trends highlight the difficulty and cost of collecting patient responsibility payments and provides a view of what’s important to your patients

1) Collection Cost Decreases By 55% After 1 Year

Naturally, the longer receivables go uncollected, the more it will cost to collect. The chart below illustrates the problem of increasing collection costs over time. Source: 2008 McKinsey consumer healthcare payment survey

chart

2) Practices Will Collect 68% Of Collections Up Front By 2017

This trend shows up front collections growing by 17% up from just 51% in 2011.  Source: 2015 Availity Research Study.

3) Bad Debt Rates In Some Hospitals Increased To Over 30%

Bad debt rates are on the rise, and in some cases, they are reaching unsustainable levels. An ideal bad debt rate is closer to 2%, not 32%. Source: 2013 JP Morgan “Key Trends in Healthcare Patient Payments”

4) 75% Of Insured Customers Are Able & Willing To Pay Out-Of-Pocket Medical Expenses Up To $1,000

Additionally, that figure rose to 90% claiming they would pay for medical expenses up to $500. Respondents cited a lack of payment options as a key factor in when opting not to pay a medical bill. Source: 2010 McKinsey Quarterly “The Next Wave of Change for US Healthcare Payments”