Reduction of Bad Debt

Reasons why bad debt occurs with patients

There are many reasons why bad debt occurs with patients, most of which, patients don’t understand how to manage their insurance or navigate through their care. Reasons that impact bad debt are issues and processes from the provider and the patient.

Examples of what leads to bad debt include:

• Coordination of benefits
• Out-of-network facilities and doctors
• Lack of properly completed paperwork
• Costs associated with unreturned calls or letters
• Unidentified payer options on the front-end
• Inconsistent follow-up
• Incorrect demographic information valued at $20B per year in write-offs
• Patients don’t understand medical billing in general
• Non-compliant with discharge instructions

Patients must be engaged early and often, supported by processes that minimize the risk for potential problems that could lead to bad-debt. Our tools and processes help by encouraging early patient involvement and removing obstacles that prevent positive resolution.

Benefits of early patient involvement include:

• Provider is in first payment position.
• Mutual third party presenting options based on facts to resolve outstanding balances.
• Move non-compliant patients to compliant.
• Reduce costs of bad debt.
• Identify and manage avenues of payment.
• Access to external technology tools that include letter campaigns and auto dialers.
• Community goodwill.
• Patients will talk to a Patient Advocate more readily than a collector.