Want to improve your annual collections by up to $2 million? It’s time your practice started using propensity to pay analytics.
Practices use propensity to pay metrics to improve collections efforts, reduce bad debt, and remove the need for endless follow-ups. But payer and patient data also help practices determine which patients may need health care loans.
If your practice is considering propensity to pay analytics, here are some tips for using it in tandem with a patient lending program.
Tips for Measuring Propensity to Pay
Propensity to pay data helps providers determine the likelihood of a patient bill turning into bad debt. Usually, this means the patient’s ability to pay is examined in addition to the payer’s reimbursement track record. Here are a few tips for using data to analyze patients and insurers.
For patients, make sure you use information from multiple sources. For instance, tax returns, pay stubs, bank statements, and credit scores are all useful for determining a patient’s ability to cover out-of-pocket costs.
To determine the likelihood of reimbursement from insurers, look to the payer’s past behavior with similar claims. For example, insurance policies often don’t cover more complex or costly medical conditions.
Using Propensity to Pay to Decide who Needs Health Care Loans
Software systems that utilize the power of Machine Learning can compile a wealth of data to analyze propensity to pay. This data is then used to rank patients in high, medium, and low propensity segments.
Patients within the high segment have the ability to pay and insurance policies that reliably reimburse you for your services. Medium segments include patients who may have a history of bad debt but are capable of paying with follow-up.
The low segment includes patients who almost never pay and almost always end up delinquent. Following up with low segment patients is generally useless since they don’t have the means to pay and are often uninsured.
Propensity to pay can help you determine which accounts will turn into bad debt. But this data can’t help you collect those debts. That’s where health care loans come in.
Epic River’s patient lending program was created to assist patients who need to pay their medical bills over time. All patients are approved regardless of credit and you’re reimbursed up front and in full for your hard work. Get in touch with us today to find out how to start collecting bad debt faster with patient loans.