Patients are becoming responsible for more of their healthcare costs. And that’s driving hospitals and health systems to put more emphasis on the financial experience.
As a result, the concept of patients as consumers has made its way into business and finance strategies.
When adjusting its pricing structure, Illinois-based Carle Health is mindful of how it will impact their patient population financially.
“I think price transparency is an obligation of the health system,” Aron Klein, vice president finance operations and supply chain, said. “Quite honestly, I think it’s a benefit to our patients to make sure they’re fully informed in advance of services.”
Patients are already under financial strain. This puts hospitals and health systems in a precarious position where they must mitigate costs to patients, while also maintaining competitive pricing.
Ensuring value to patients across all services is one of the system’s goals, Klein added.
The reimbursement process between providers and payers can be difficult for patients to understand as well. It’s up to providers to make sure patients are fully informed and can understand their out-of-pocket expense, Klein said, whether it’s before care is provided or after the service.
To assist with this goal, staff are educated on the patient financial experience so they’re better equipped to assist patients in their understanding of copays, coinsurance, deductibles, and out-of-pocket expenses.
“We do have an obligation to try to educate them to the best of our ability because it does come back to patient relationships and ensuring that they continue to have access to care over the long term,” Klein said.
Jasmyne Ray is the revenue cycle editor at HealthLeaders.
KEY TAKEAWAYS
Hospital and health system leaders must bring the concept of patients as consumers into business and finance strategies.
Providers should take the initiative to educate patients on the reimbursement process and their financial responsibility.