4 ways to measure the patient financial experience …...4 ways to measure the patient financial...

4 Ways to Measure the

Patient Financial Experience

& How to Improve It

Embrace consumer trends to grow patient payments

Patientco

In Brief

Intelligently applying

Technology to improve

patient responsibility

for Health Systems

and Patients

Founded in Atlanta, 2009

+2,000 Active Healthcare Locations

+14MM Unique Patients

+$4B Billed Patient Balances

Backed by ATL Award 2018

copyright 2019 Proprietary and Confidential 1

MISSION | Patients and health systems deserve

better than the status quo. We build easy-to-use

technology that ensures health systems maximize

patient payments.

2copyright 2019 Proprietary and Confidential

The Patientco

Perspective

Health Systems have the opportunity

to transform the patient financial

experience into an economic growth

engine

Patientco is reimagining the patient

financial experience by bringing

health-specific payment infrastructure

together with consumer focused tools

informed by analytics to create a

superior payment experience which

predictably yields more dollars

More Payments

Today

Loyal Patients

Tomorrow

Economic Growth Engine


“The future is already here – it's just not evenly distributed”

- William Gibson


Agenda

Liquid Expectations

Spotlight on Healthcare

Measuring to Improve

Describing “Good”


SHOP EXPLORE ENTERTAIN LEARN HEAL

Copyright © 2016 Accenture. All rights reserved.

Consumer expectations continue to

rise, gain competitive advantage by

delighting your patients


Direct Competitors Experiential Competitors Transformational CompetitorsProducts or services that directly compete with yours

Experiences that set expectations across industries

Companies that change customer expectations

LIQUID EXPECTATIONS


Source: Fiercemarkets Temkin Experience Ratings

Low

est

Hig

he

st

Health ISPs Banks Retail Supermarket

Co

nsu

me

r Sa

tisf

ac

tio

n S

ca

le Closing the Satisfaction Gap:

• Price transparency, cost estimator

tools, and affordable payment

options

• Tailor service delivery based upon

specific consumer preferences

• Build trust, connecting to reliable

clinical information sources

• Offer similar degree of digital

integration provided in retail and

banking

Benchmarking the Healthcare

Consumer Experience

Consumer satisfaction in healthcare

lags other industries, indicates

upside opportunity


Translating a

Consumer Experience

Scheduling On-Demand Simplified PaymentReviews

Consumer

Focused

Healthcare

9

Consumer focused offerings

increasingly have healthcare

analogs

copyright 2019 Proprietary and Confidential

Today’s Health

Consumer

Patients have digital tools and

increasingly behave more like

retail shoppers

DIGITAL

Over 50% of health

consumers expect more online interactions with healthcare

providers

1. Pew Research, Consumer 2016 Survey

FICKLE

14% of healthcare consumers

switched providers in the last 12 months; higher than the switching rate for hotel chains

FINANCIALLY ACCOUNTABLE

81% increase in the average employee contribution to

health insurance premiums for family coverage in the last 10 years

SOCIAL

Consumers are over 3x more likely to

say that reviews from other patients are a key factor in their decision-making

versus quality ratings

SMART PHONE ENABLED

+77% of Americans now own a

smartphone with lower income and +50 years and older exhibiting a sharp ownership uptick

LIVING ONLINE

Nearly 9 in 10 of Americans are online

today with easy, convenient access to the internet


• Smartphones are nearly ubiquitous

among young adults, with 92% of

18- to 29-year-olds

• Nearly three-quarters (74%) of

Americans ages 50-64 are now

smartphone owners (a 16 point

increase compared to 2015)

• 42% of those 65 and older (up 12

points from 2015) own smartphones

• 64% of lower-income Americans,

those earning less than $30,000

annually, now own a smartphone


% of US Adults Who…

Approaching

Digital Ubiquity

Source: Pew Research, Evolution of Technology 2017

Consumers increasingly adopt digital

tools while smartphone ownership

grows rapidly across segments

PatientWallet

Users by Age

12

Digital payment tools are used and

preferred by many regardless of age

0 2

19

21

23

25

27

29

31

33

35

37

39

41

43

45

47

49

51

53

55

57

59

61

63

65

67

69

71

73

75

77

79

81

83

85

87

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91

93

95

97

99


Spotlight on Healthcare.


A Patient Balance

Explosion

Healthcare costs are increasingly

borne by consumers, testing the

limits of affordability for most

• Average deductible tops $2,0001,

a 12% increase in a single year

1. KFF 2016 annual workplace study

2. Affordability studies from Fed Reserve, IPSOS, RWJF, and CFPB

An Affordability CrisisShifting Costs to Consumers

• 55% of Americans have received an

unaffordable healthcare bill2

• 44% do not have $400 for an unplanned

emergency or bill

• Healthcare, #1 source of

collection calls in the US

13%CAGR

High Deductible Plan Share

20%

29%

2014 2017


US Consumer

Payment Sentiment

Hospitals Pharmacies Insurers

Convenient

Transparent

Affordable

Reliable

Seamless

Consumer views are decidedly

mixed when it comes to healthcare

payments and billing

21 – 30%<10% 11 – 20%Dissatisfied Consumers1 >31%

1. 2015 US Consumer Health Research Institute, PwC15copyright 2019 Proprietary and Confidential

Current billing practices only add

to consumer anxiety and inaction

😕Which one do I pay?

😳 Then what is it?

😧 How much do I really owe?

😤Why is this so confusing?

😡Who do they think I am?

A Frustrating

Patient Experience

One encounter: Many bills

“This is NOT a bill”

Changing balances

Clinical language

Few payment options


Nonsensical

Statements

A US News online article explored

how to READ a healthcare bill…


Patient Expectations To what extent do current

practices meet, or exceed, these

expectations?

53% of US AdultsWant payment options

prior to care

40% of Millennials

Would switch for more

options

77% of US AdultsImportant to know costs

before treatment1

1. Survey of 1,011 US adults conducted by ORC Intl 18copyright 2019 Proprietary and Confidential

Convey Cost, Payment Options at Pre-Service

99% of patients want better pre-service communication about their costs and payment options.

Providers that offer this can differentiate themselves from the competition.

Address affordability concerns and

establish commitment to pay earlier


Collection Agencies

and Healthcare

Healthcare is the most prominent

user of debt collection services

59% of ConsumersContacted by a debt collector

reported it was for healthcare

40 to 100 point FICO dropImpact from one medical

collection trade line

#1 Source of callsMedical debt drives most

collection agency calls1

1. NPR and RWJF reported figures, 2015 and 2017, CFPB Carroll presentation

+2X FrequencyNegative lines vs. second

leading (Telco)


A Positive Experience Builds Loyalty

Patients choose providers based on the billing experience


Measuring to Improve.


Quantify the Patient

Financial Experience

Evaluate 4 Metrics

1. Patient Engagement

2. Patient Participation

3. Self-service Payments

4. Call Volume & Complaints

23

Measure and optimize patient engagement

by examining email open rates


Patients Prefer to Engage Digitally

Nearly 80% of healthcare emails

are never opened. Investing in

technology that tracks open rates

could enable Health Systems to

improve email engagement.1

1https://mailchimp.com/resources/email-marketing-benchmarks/

Patients want emailed communication, not more paper mail


Communication

Matters

27

To improve payment rates,

health leaders must first maximize

deliverability and conversion

• Standard email open rates in

Healthcare are less than 20%

• When optimized for subject line and

send time, open rates jump to +50%

• Ensure that you maximize eBills and

digital communication effectiveness

through multi-variate testing

• Start with send day and time

Email Open Rates by Day and Time




Evaluate 4 Metrics





28

Measure and increase how many patients

make a payment to maximize revenue


Solve for all Patient

Payments

Balance Tailored Payment Solution What Good Looks LikePatient

Distribution

Up to $400 Self-service paymentsEasy self-service payment tools drive high

pay-in-full rate

~80%

$400 - $1000 Self-service payment plans

Installment payments with dynamic

business rules to adjust duration, typically

<12 months accelerates cash

$1,000 - $10,000 Smart Financing Products

Integrated offers across statement, eBill,

and email drives adoption and accelerates

cash~15%

+$10,000All of the above to secure

greater % of billed balance

Availability of options gives flexibility to

resolve high balances~5%

Tailoring solutions by bill balance

segment maximizes patient

payment participation


Payment In Full vs.

Partial Payments1

As balances grow beyond ~$500,

partial payment count exceeds

payment in full rates

1. Payment in full requires bill balance to be reduced to zero, partial payment includes any payment applied to an existing Patientco balance where first bill occurred in CY 2017

Pay in Full % Partial Pay %

0 - 350 350 - 1,000 1,000 - 2,000 2,000 - 10,000 10,000 - 25,000 25,000 - 50,000 >50,000

Patient Bill Balance, $’s

Percent of Patients Pay in Full vs. Partial Pay1

Pe

rce

nt

of

Pa

tie

nts

Pa

yin

g




Evaluate 4 Metrics





31

Analyze self-service rates to

discover ways to drive adoption


Patients Want Self-Service Payment Tools

If not at POS, patients prefer to pay online and via mobile


Address Affordability, Patients’ Top Concern

Flexible payment options available, but patients want digital enrollment




Evaluate 4 Metrics





34

Identify trends and monitor factors that

influence the patient financial experience


Reduce Confusion for Fewer Patient Calls

Reduce call volumes with clear statements that use patient-friendly billing language.

Most patient calls stem from confusing or incorrect bills


Describing “Good”.


What Does “Good”

Actually Look Like?

Connected and in sync across the IDN

Uses stated, and implied, consumer preferences

Designed for flexibility – no patient or IDN is the same

Communication creates engagement

For Staff, easy to manage and use


It’s A Balance

Problem…

44% of

AmericansDo not have $400 for an emergency1

26% of

AmericansBill caused a severe financial impact3

1. Fed Reserve Board, % requiring access to credit, family, or sale of personal goods in an emergency

2. Ipsos Public Affairs, healthcare bill reported as unaffordable

3. RWJF, healthcare bills have caused ”severe” impact to family financials

55% of

AmericansReceived an unaffordable bill2


Increased Enrollment

and Adoption

Integrate payment plan offers into

the payment experience

Today’s enrolment relies on brochures,

cold calls, and patients proactively

calling to register with a vendor they

are not familiar with.

or


Making it Easy Use technology to simplify payment

plan offers for both patients and

Hospital staff

Human intensive enrollment Supported by Patient Self-Service

~10 Field Payment Plan Application 3 Field Application

Apply for payment plan eligibility“Pre-Approved” screening and

communication

New vendor with IT integrationNo new integration, like flipping a

switch

Paper and people intensive

communicationComplimented by Email, Text, e-Bill

TODAY (COMPLICATED) TOMORROW (BETTER!)


Putting it all together.


A Modern

Connected

Payment

Experience

A modern Payment

Experience should be

connected across an IDN

deliver value for three

key stakeholders:

PatientsDesigned to meet

consumer expectations

while making healthcare

more affordable

StaffEasy-to-use technology

increases POS collections

and improves staff

satisfaction

Health SystemEvery payment

touchpoint, across all locations, seamlessly

connected


The Patientco

Perspective

Health Systems have the opportunity

to transform the patient financial

experience into an economic growth

engine

Patientco is reimagining the patient

financial experience by bringing

health-specific payment infrastructure

together with consumer focused tools

informed by analytics to create a

superior payment experience which

predictably yields more dollars

More Payments

Today

Loyal Patients

Tomorrow

Economic Growth Engine

Many see15-25% payment lift


45

Interested in

learning more?

Check out our free

resource library at

Patientco.com/resources


Thank You!

Cindy Smith

[email protected]

480.395.9836

46

mailto:[email protected]

4 ways to measure the patient financial experience …...4 ways to measure the patient financial...

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