The importance of 1/3 when it comes to collections
When we studied fractions in elementary school, 1/3 was one of the first we learned. It was important back then, and it can be now, too:
- If you get the standard two weeks of vacation time, 1/3 of it could get you several nice long days on a warm, sandy beach and some much needed R&R.
- If you’re diamond shopping, 1/3 of a carat is a nice size; it’s moderate, but still big enough to show some flash.
And if you’re a healthcare leader, 1/3 is an important fraction because it’s the approximate amount of revenue that comes from patients.*
- Back in 2010, patient payment revenue was 25 percent according to MGMA research but the percentage keeps climbing.
- In a survey of ambulatory surgery centers (ASCs) conducted by Becker’s ASC Review and Navicure, 72 percent of respondents indicated patient revenue was between 21 and 40 percent, which is pretty similar to physician practices. Consequently, all healthcare organizations can benefit from implementing new strategies to improve the patient payment process.
The ASCs represented in the Becker’s ASC Review-Navicure survey have another important 1/3 related to patient payments: more than 1/3 still rely on manual patient billing processes. Automation can be the key to increasing patient payment revenue without adding staff or other resources. In fact, it can also lower costs such as paper statements and third-party collections.
Learn how you can improve two critical parts of the patient payments process, (1) estimation and (2) collections, by reading Collecting More From Your Top Payer (and I guarantee you’ll read the entire thing—not just 1/3 of it!).
*Deborah Walker Keegan, PhD, “Keep Your Revenue Cycle from Flat Lining” (webinar, Medical Practice Dimensions Inc., 2014).