Despite credit card use in daily life, credit card on file programs are not common practice among healthcare organizations. Only 20 percent of providers use a credit card on file for patient collections as of February 2017, according to a recent survey.
The problem is that healthcare debt is going up and hospital and practice billing operations need solutions to reduce the amount of payments owed by the patient. McKinsey & Company research uncovered that providers only expect to collect between 50 and 70 percent of a patient’s balance after a visit and another 70 percent of providers stated that it takes at least a month to receive payments from patients.
One approach to solve the problem is deploying “Card of file” to streamline collection efforts. While most providers do not have the program, about 20 percent agreed that a credit card on file program is the best method for decreasing patient days in accounts receivable. Another 29 percent viewed the patient collection strategy as an effective way to reduce bad debt and write-offs. A recent survey showed the most favored patient collection method for medical bills $200 or less was credit card-on-file, following by billing portal with 18 percent, provider website with 16 percent, and automated payment plans with 9 percent. Surveyed providers also agreed that the credit card-on-file method would benefit their healthcare revenue cycles.
Another survey revealed, implementing a credit card on file program boosted patient collections and reduced accounts receivable by 28 percent in six months at Orthopaedics & Rheumatology of the North Shore, a four-physician specialty practice in Illinois.
Moreover, with 74 percent of providers reporting an increase in patient financial responsibility in 2015, according to a June InstaMed survey, healthcare providers should consider implementing more patient-preferred collection methods such as credit card-on-file.
Our Patient Financial Management platform, HiLiteMD, is HIPAA compliant and secure, enables healthcare providers to use card of file logic and works with the healthcare provider on the policy to streamline collection efforts. It is patient-centered with highest standards to ensure transactions are processed securely and patient data is protected.
How it can benefit you?
Keeping card information on file can ensure that patients’ bills are always paid, and that these payments are credited to your account, giving you quick and reliable access to collect outstanding patient debt owed. It reduces the need to send multiple statements and wait for payment, which often comes late or fails to come at all. Emailed receipts and electronic forms make you more paperless – and more effective. And best of all, getting paid never has to become an issue between you and your patients again.
How COF works for you?
HiLiteMD combined with COF can maximize the success of your business by offering a streamlined way to pay, making things easier for you, your staff, and your patients.
- Increased Patient Payments
Making a payment will no longer require that patients go online, mail a check, or even produce an actual card. Rather, HiLiteMD provides the technology to safely store the card data the patient gives and charges the owed balance on the account each time you deliver the services indicated. It can also set up a variety of flexible payment programs that meet the financial needs of your patients while ensuring that you get paid more reliably. If you are providing an ongoing service to a patient at a regularly scheduled interval, for instance, your agreement might include a recurring payment plan, in which fixed amounts are charged automatically at given periods of time. You can even automate the installment payments for those who need more time to make payments.
Our survey showed Providers and patients disagree on how long it takes patients to pay. Over half of providers (51%) say it takes their average patient more than three months to pay their full balance. Only 18 percent of patients claim it took them longer than three months to pay their last balance. This can be attributed to the chasm between providers and potential patient confusion over medical billing. Most healthcare providers stated that patients may not understand which one of the multiple statements they receive after visit is the correct medical bill. To eliminate this confusion, providers can utilize COF to reduce confusion with statements and increase cash flow faster.
- Secure Payment Technology
Utilizing HiLiteMD ensures that you will not put your patient’s data at risk. Sensitive information is never kept on your premises or stored on your servers or computers. Instead, HiLiteMD stores all customer data in a secure, encrypted, electronic vault. This gives you the security of knowing that your transactions are PCI, DSS and HIPAA compliant, and your business is protected from the skyrocketing cost of fraud. Plus, cardholders can rest assured that their confidential information is protected by layers of industry-leading, fully-compliant, state-of-the-art technology.
- Improved Satisfaction
With proper training and standards in place, a card on file program can work for both your patients and your business, saving you time and money while also helping your patients stay on top of their payments. Our services help healthcare practices improve collection rates from patients, increase patient satisfaction and reduce the amount of staff hours spent dealing with inefficient systems. HiLiteMD Telehealth’s integrated system allows you to focus on what’s most important – your patients.
- Fraud Monitoring
With HiLiteMD, track payments with integrated financial dashboards and reports that allow real time tracking of payments as they are made. Our trained risk management experts consistently monitor transactions, so that the safety and security of every transaction is guaranteed.
For more information on our COF solution, book at demo and witness how you can transform your payment process. This is one of the many proprietary processing tools HiLiteMD offers to help you run your billing department more efficiently, save valuable time, and increase cash flow. Contact us at Info@HiLiteHealth.com or visit our website https://www.HiLiteMD.com for more information.
CEO | HiLite Health