This week Eric Anderson, Clearwave COO, reviews some dramatic trends in patient payments.
Today I would like to talk to you about the problem of patient collections. Becker’s did a study and they found that 10 years ago, the average percentage of revenue that hospitals and clinics collected directly from the patient was above 5-10%. Today, the percentage of revenue that comes directly from patients is 30-35%.
Exacerbating that, is the fact that patients are less likely to pay. RevCycle Intelligence found that patients are 15% less likely to pay today than they were just last year. In fact, if a patient owes you less than $500, only 68% pay that bill in full. And if they owe you more than $500, 86% never pay the bill in full.
This is a tremendous issue for hospitals and clinics. If you struggle to collect 5-10% of your revenue, that is a problem. But if you struggle to collect 30-35% of your revenue, that’s a catastrophe. The good news is, we at Clearwave have a number of solutions that streamline payment and greatly increase collections from patients. And the next time we chat, I’m gonna be talking about my personal favorite, card on file. I look forward to speaking with you soon.