The Impact of Patient Financial Literacy on Revenue Cycle Management Success
June 03, 2023
The success of an efficient Revenue Cycle Management (RCM) system for any healthcare provider is dependent on a host of factors, not the least of which is patient financial literacy.
Patient financial literacy is a term used to describe the level of knowledge that a patient has regarding the financial aspects of their healthcare. This includes:
- The ability to understand and navigate their financial responsibilities
- The costs of their healthcare services
- The different payment arrangements available to them
- Their understanding of their insurance
- Their rights as a patient
- Their ability to negotiate the best possible payment terms
RCM systems that are tailored to patient financial literacy help providers to better understand their patients' financial situations and to incorporate more patient-friendly payment options into their RCM strategies. This is especially important when it comes to high-deductible plans, which can often be difficult for patients to understand and adhere to. By educating patients about their financial responsibility and providing options that meet their needs, providers can increase their collections, reduce the amount of bad debt, and improve their overall RCM success.
In addition, providers can use patient financial literacy to better understand the needs of their population and to tailor their services to meet those needs. For example, if a provider knows that many of their patients have limited financial resources, they can provide more flexible payment options, such as giving patients the opportunity to pay in installments. This can help to reduce the number of defaulted payments and improve the provider's overall RCM success.
Patient financial literacy is an important factor in the success of any RCM system. By providing patients with the financial education they need and offering more patient-friendly payment options, providers can increase their RCM success and improve their bottom line.