What is the biggest driver for the rise of unpaid medical bills?
It should come as no surprise that the trend over the past decade to high-deductible plans means that the consumer is forced to pay more out of pocket expenses for his or her medical care.
For example, consider that uncompensated care (which comprises a combination of bad debt and charity care) increased to $38.4 billion in 2017 from $36.1 billion in 2015, according to the American Hospital Association. That amount constitutes a 6.37% increase.
So what’s a potential solution?
Some providers are changing the way medical bills are sent to consumers.
For example, executives from Ooda and Dignity say they’re creating an experience similar to a credit-card statement, where every provider encounter is listed on a single bill. Consolidating medical expenses on one bill, along with providing patients with payment plan options, could ease the rise of uncompensated care.
The bottom line is that health care providers are seeing a steady increase in the amount of uncompensated care, which causes them to shoulder a heavy bad debt load. For example, Moody’s Investors Service stated that bad debt for not-for-profit hospitals’ is projected to increase at least 8% this year as the high-deductible health plan trend continues.
One trend is requiring upfront payment (in full or part) at some medical practices. And so far some hospitals have started to roll out similar policies in an effort to stem their growing bad debt.
Find a medical collection agency today
Save time and money by hiring an professional agency who can help your office or medical practice collect some (or all?) of your outstanding revenue.
Click the link and find a medical collection agency today.
After all, when you get down to it you really have two choices:
- keep doing what you’re doing (and hope for a different result),
- get a free quote (by clicking the link above), or
- review our list of medical collection agencies and contact them directly yourself.
Either way it’s your money… you decide.