FiscusCare Provides Solutions for Escalating Out-of-Pocket Payments
In the healthcare industry, there is a shift occurring in how medical providers are being paid for their services. Patient payments and deductibles are accounting for more and more of a practice's revenue, resulting in higher accounts receivable, longer collection periods and increased losses due to patient bad debts. Hospital admissions for elective procedures are declining and bottom line revenues are being affected. All categories of providers are struggling to collect the increased patient share of the cost.
Five years ago, insurers paid about 90% of hospital claims, leaving patients responsible for about 10% of the cost. Today, the mix is 70% by insurers and 30% patient out-of-pocket. Many patients opt for high deductible plans and are directly responsible for almost 40% of the costs. Hospital and vendor executives say the strains from high-deductible plans are ballooning. Patients are being asked to produce upfront cash payments, utilize high interest loans, or negotiate payment plans with health facilities. The national average collection rate on provider-administered plans is only about 20% forcing reluctant practitioners to turn hundreds of millions of dollars, and their valued patients, over to collection agencies. Pursuing collection from people who can't pay causes them unnecessary angst and hurts the hospital's public perception and patient-satisfaction scores.
For decades, medical finance companies have serviced the dental and cosmetic surgery segments of the healthcare industry. In 2015 the dental financing market single-handedly amounted to almost $8.5 billion of unsecured sub-prime loans saddling many patients with appallingly high interest rates. Banks that participate in this market have structured their plans utilizing medical “credit cards” that offer a promotional 1-year 0% interest rate. Unfortunate borrowers are frequently burdened with late fees, interest rate hikes exceeding 29.99 %, back charges, poor offshore customer service departments, and the compounding and revolving interest scheme. Many patients lack the resources to pay off even $2000 within the first year promotional period. Out of pocket costs of $7,500 and up to $25,000 are common. Borrowers are being set up to fail, with very good reasons.
Traditionally, hospitals, surgery centers, and most physicians have avoided using consumer finance companies. Today, the infamous sub-prime lenders have begun to appear in medical facilities as a direct result of growing patient out of pocket expenses. However, the reality is that less than a third of patients who apply will actually qualify for medical credit cards leaving many patients in an untenable financial position. The growing popularity of uninsured elective therapies like stem cells, regenerative medicine, dental implants, fertility treatments, substance abuse, vision correction, and many others have also added to the demand for creative financing solutions. Though hesitant to offer sub-prime borrowing options to their patients, providers are exploring consumer lending as patient debt climbs to record levels.
Fiscus Healthcare Financing provides a new way forward. Our patient finance programs strike a balance between maximizing provider revenue while giving cash strapped patients affordable plans to pay their medical bills over time. FiscusCare programs fund over 95% of applicants, offer true 0% interest options with no hidden fees, penalties, or interest rate hikes. We do it without affecting a patients FICO score or the threat of bankruptcy. Our customers obtain the piece of mind that their patients are not being driven off a financial cliff simply to afford their care and services. Providers can collect 100% of the payments owed to them by the insurance company, continue to practice medicine the way that they see fit, all while helping their patient physically and financially.
Every day our FiscusCare sales partners are transforming their positions as trusted clinical and surgical sales representatives into that of overall business advisors. By presenting our patient finance programs to their customers and leveraging their relationships, they create a long-term passive revenue stream as well as a more diversified income. Our team provides your customers with sales presentations; customer enrollment and training; as well as ongoing support for success.
Join the FiscusCare team today and give your customers tangible solutions to one of the leading challenges in healthcare today.
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