Propensity to Pay may not be the first thing to roll off your lips when you think about creating healthcare patient payment plans. But it should be.
Propensity to pay—or ability to pay—is the use of behavioral analytics, combined with your medical group’s internal payment rules, to create smart payment plans that patients are more likely to comply with.
Some keys to consider when implementing Ability to Pay solutions:
Don’t wait for the clinical encounter to score a patient’s account. By knowing the account score prior to their visit, you can collect an appropriate amount at the time of service.
Have a plan for how to handle Ability to Pay tiers.
One you have identified account score tiers—decide how you want to handle those with clear rules. This will allow you to align staffing resources and procedures to each level—with the proper workflows to support each.
Access historical payment data.
Ensure your Ability to Pay solution can access historical claims data. This will improve the quality of the score dramatically.
Know your baseline metrics.
In order to determine the effectiveness of your Ability to Pay solution, make sure you know your baseline self-pay KPIs. Everything from DSO (or average days to collect), write-offs for bad debt and charity, current POS collections, etc.
Implementing a Propensity to Pay/Ability to Pay solution can be an effective method of improving your patient collections when done thoughtfully, and as part of a larger patient-friendly payment program. To learn more about Propensity to Pay, check out PatientPay's RCM solutions.