In-house, Banks, and Traditional Outsouce Billing

  Historically, medical providers have faced many challenges in providing self-pay payment options:

• In-house payment arrangements can be time-consuming to manage, and require additional resources from the provider to maintain.
• In-house lending may create financial management problems and potentially damage patient relations.
• Outsourced lending through banks and similar institutions could require a great deal of paperwork and reduce patient satisfaction if faced with the need for understanding and flexibility in payment arrangements.
• Outsourced account management through traditional billing institutions often involves merely a series of generic letters with no follow-up, no customer service and no problem resolution.

Rising Costs and Insurance Trends

• Technology: Technological improvements, such as MRI's, provide advanced detection and treatment capabilities but cost more to provide than traditional procedures, such as X-rays.
• Increased Demand: An aging population and advanced treatments has increased consumer demand and driven up prices.
• Prescription Drugs: The rise in the cost of both traditional and breakthrough medications adds to the overall cost of treatment.
• Cost Shifting: The number of uninsured seeking emergency healthcare forces uncovered costs to be shifted to the facility and other patients.

Trends affecting Out-Of-Pocket costs:

• Percentage Coverage: With higher overall costs, the same percentage of insurance coverage will leave a larger self-pay balance.
• Insurance Deductibles: Patients seeking more affordable insurance may opt for plans with larger deductibles.
• Non-covered Procedures: Patients may choose to undergo more advanced, alternative or cosmetic procedures that are not covered by their insurance plan.