Written by Andrew Neal on Oct 10, 2023

Six Common Patient Financial Challenges and How to Solve Them

New survey data coming in our 2023 Patient Payment Technology Report later this month shows which negative financial experiences are keeping patients from returning to their healthcare providers. Among these common challenges, incorrect or confusing charges and a difficult billing and payment process top the list. Here are six common patient financial challenges and 18 simple solutions to address them.

Providing Limited Self-Service Capabilities to Patients Can Harm Provider Loyalty

The percentage of patients who say that they have needed to call customer service instead of confirming their payments online or via text message has been steadily increasing over time, from 24% in 2019 to 36% in 2023.

This suggests that patients are facing increasing frustration with the limited self-service capabilities of their medical providers. When patients are forced to call customer service while trying to make payments online or via text, that conversation between the patient and provider starts on a disheartened note.

There are a few possible reasons for this, including that patients may not be familiar with how to use self-service payment options. In addition, patients may have issues setting up self-service capabilities through their provider and need assistance in creating an account. A few solutions to help patients get over these hurdles include:

Embrace communication and education, making it easier for patients to find and use self-service payment options from their first visit.
Provide ongoing training, coaching, and scripting to staff on how to use self-service payment options and educate patients on how they can access these tools.
Make self-service payment options more visible and accessible. When a patient is ready to pay, the process should be as simple as logging in or verifying their billing statement, adding a payment method, and receiving a payment confirmation. If the self-service payment options for your online patient portal are more complex than this, it may be time to evaluate a new patient payments and billing partner.

Incorrect or Confusing Charges Continue to Increase Net Days in Accounts Receivable

The most common negative financial experience that would keep patients from returning to their healthcare provider, according to patient survey data, is being charged incorrectly or not knowing what they were charged for. This has been the most common complaint across all four years that individuals have been surveyed about their healthcare provider billing practices. In 2019, 42% of patients said that this would keep them from returning, and this number has only increased over time, reaching 63% in 2023.

This suggests that patients are increasingly concerned about being overcharged or billed for services that they did not receive, and can be a major source of frustration and anxiety for patients.

The healthcare system has become increasingly complex, and it can be difficult for patients to understand their bills. Medical coding information, rising costs, regulations, and insurance requirements can make the process complicated and confusing.

Healthcare providers can address this issue by simplifying the billing and payment process, and by making it easier for patients to understand and pay their bills through a few simple targeted actions:

Provide clear and concise billing statements, regardless of whether they are delivered digitally or through a traditional print and mail vendor, along with a detailed and easy-to-understand Explanation of Benefits and how to pay.
Make it easy for patients to pay their bills wherever their preference may be; whether online, over the phone with billing or revenue cycle workforce members, or at the point of service.
Offer patients multiple payment options, beyond the standard credit cards, debit cards, and checks. If it’s easier for a patient to pay via PayPal, Venmo, or other methods, the process should be as simple as peer-to-peer or retail payments, and as secure as any other healthcare payment.

Difficult and Unorganized Billing and Payment Processes Can Muddy the Waters

The second most common negative financial experience that traditionally keeps patients from returning to their medical provider is that the billing and payment process is difficult and unorganized. This has been a consistent complaint over the four years of this survey, and is getting worse, with 34% of patients saying that this would keep them from returning in 2019 and 45% saying the same in 2023.

Patients are finding the billing and payment process to be confusing and time-consuming. If they are trying to pay their bills quickly, or if they are not comfortable with technology, these obstacles can have a significant impact on their overall perception of their provider. Here’s how you can help patients navigate the confusing waters of healthcare payments, and decrease your overall cost-to-collect:

Provide patients with a financial path that best suits their needs, capabilities, and comfort.
Gather patient preference data on communication channels and payment methods early in the patient intake process to better understand how to interact with them throughout the billing process.
Educate patients and staff on all available resources to better understand the billing and payment process, and how to answer questions they may have throughout the patient financial journey.

Payment Plans At Times Are Not Flexible Enough to Meet Patient Needs

The percentage of patients who said they needed a longer payment plan or financing term has been increasing over time, from 25% in 2019 to 29% in 2023.

This suggests that patients are increasingly struggling to pay rising costs associated with their healthcare services. Providers can help serve a wider array of patients by offering flexible and adaptive payment plans or financing options that are more likely to meet patient needs. This can make it easier for patients to pay their bills and avoid financial hardship, while also working to drive patient loyalty. Some considerations to ensure that your payment plan options for patients are accessible include:

Offer payment flexibility, including payment plans and access to third-party financing options based on what best suits your health system’s needs. This can allow patients to pay their bills over time with lower interest rates, and at times can help drive an increase in cash collection as a percentage of net patient service revenue.
Work with third-party financing partners who offer increased flexibility with their payment plans, sometimes even including promotional interest rates that can provide a benefit to patients. This can help those who are struggling to pay their bills on time, and decrease the burden of bad debt providers often carry.
Work with patients early and often to help develop a payment plan that works best for them. This can help patients avoid financial hardship and keep them coming back for care.

When a Patients’ Primary Form of Payment Isn’t Accepted, You Can Expect an Increased Cost and Time to Collect Payment

Another common negative financial experience that patients have said would keep them from returning to their medical provider is that their primary form of payment was not accepted. Although this point is improving, down from 28% in 2019 to 21% in 2023, providers should continue to explore all emerging payment options that deliver convenience to patients while maintaining security standards.

It can be assumed that most healthcare providers already accept several common forms of payment such as credit card, debit card, and check. But many patients are moving beyond the most common payment methods and prefer using methods like PayPal and Apple Pay, or more financially feasible options like third-party payment plans.

Accept a variety of payment options, including credit card, debit card, check, and emerging digital payment options.
Simplify the billing and payment process overall, making it as easy for patients to pay their healthcare bills as it is for them to reload a Starbucks card.
Be clear about which payment methods are accepted even before care has been received. This information should be prominently displayed on the healthcare provider’s website and in their office at the point-of-service.

Avoiding Significant Delays in Delivering Bills and Statements

The percentage of patients who experienced a significant delay in receiving a bill has increased slightly over time, from 22% in 2019 to 25% in 2023. This can be due to a number of factors, including the complexity of the billing system, the lack of transparency in pricing, and the difficulty of interfacing with healthcare billing departments. To avoid adding to an already complex process, consider the following:

Determine the average time between service and delivery of a patient’s healthcare bill to establish a benchmark and identify room for improvement.
Make it easier for patients to track their bills by implementing a communication strategy that notifies patients when they have a new billing statement, and consider adopting a digital-first approach to dramatically decrease the time and cost-to-collect.
Be responsive to patient inquiries about bills and educate staff on how best to help patients stay up to date on their billing status.

Overcoming Negative Financial Challenges

Salucro helps healthcare organizations overcome these challenges by offering a suite of patient financial engagement solutions designed to help improve the patient financial journey throughout the revenue cycle. These solutions include self-service capabilities, clear and concise statements, and an intuitive patient portal that accepts a variety of payment options, including third-party financing.

For more insights and data, you can pre-save our 2023 Patient Payment Technology Report today and be amongst the first to receive a copy when it’s released later this month.