Solving for X: Transparency’s role in the patient satisfaction equation

Running Your Medial Practice as a Functioning, Profitable Business

As healthcare transitions towards a more consumer-friendly, retail-oriented model, recent studies show it’s not patient care and clinical outcomes that are the top concerns of physicians and hospital executives. Rather, it’s the daunting reality of running a business in this fast-changing landscape.

In fact, the American College of Healthcare Executives released a survey in 2017 indicating that — for the third year in a row — increased competition among providers for patients and other “financial challenges” topped the list of its members’ most pressing concerns, alongside tectonic industry-wide shifts like the transition from fee-for-service to value-based care.[1]

When it comes to getting ahead in crowded provider markets, transparency is proving to be the missing variable to successfully solving the patient satisfaction equation. The reason is simple: Today, nearly all patients are paying much more for healthcare than they were even just a few years ago, and they want to know as early as possible in the revenue cycle process exactly how much they’ll owe and when it’s due.

According to the U.S. Bureau of Labor Statistics, the average out-of-pocket healthcare costs for a U.S. household increased by 61 percent between 2005-14, from $2,664 to $4,290.[2] Even more, some Healthcare.gov policyholders are now responsible for up to 40 percent of their healthcare costs out-of-pocket. And employer-based policyholders aren’t faring much better: A 2016 study by The Henry J. Kaiser Family Foundation shows that 51 percent of individuals covered by employer-based insurance in 2016 had a deductible of $1,000 or more, up from only 10 percent in 2006.

To adjust, providers are overhauling their revenue cycle operations, implementing new point-of-service protocols, and enhancing payment and financing options. They’re also prioritizing patient satisfaction, because happy patients are good for business. According to a 2014 Connance Consumer Impact Study, 95 percent of patients who had a positive billing experience “would return to the same hospital for a future elective service.”[3]

A satisfied healthcare customer also is more likely to pay their bill. In the Connance study, 74 percent of patients who had a positive billing experience paid their balances, while just one-third of non-paying patients failed to pay. In our experience, communicating clear, accurate and timely information to patients about where they stand in the lifecycle of their insurance goes a long way in keeping them happy.

Alveo provides clients with tailored business solutions that enhance transparency and improve patient satisfaction. Our services include patient eligibility verification, claims processing, remittance advice, patient statements, patient payment portal, customized reporting and analytics, and a unique electronic prior authorization solution set. For more information, please visit Alveohealth.com.