The healthcare industry is facing a critical challenge: the traditional billing experience is driving patients away. With healthcare costs on the rise and patient financial responsibility increasing, it’s more important than ever for healthcare providers to rethink their billing practices.
The Patient Billing Problem
A recent survey of over 1,000 U.S. consumers revealed a startling fact—nearly 40% of patients have switched providers due to negative billing experiences. This issue is compounded by declining patient collection rates, which have dropped from 55% in 2021 to just 48% in 2022 and 2023. Providers are struggling to collect payments, even as hospital margins grow slimmer.
But why is the billing experience so frustrating for patients? The problem lies in outdated metrics that focus on revenue cycle management rather than patient satisfaction. Providers have long relied on benchmarks tied to insurance collections, but as high-deductible health plans become more common, patients are shouldering more of the financial burden. Yet, the billing experience remains complex, confusing, and often unpleasant.
Cedar’s PFX Benchmarks: A New Standard for Patient Billing
Enter Cedar, a healthcare financial engagement company that’s leading the charge in transforming the patient billing experience. At the 2024 Healthcare Financial Management Association (HFMA) Annual Conference, Cedar introduced the PFX Benchmarks initiative—an innovative approach to redefining billing practices with patient-centric metrics.
Cedar’s PFX Benchmarks are designed to fill the gap in the current system by providing healthcare providers with new, actionable insights into their billing practices. These benchmarks focus on key areas such as:
No-Show Rate: Tracking and minimizing missed appointments to improve revenue and patient care.
Patient-Friendly Collection Rate: Measuring the success of collections on the first attempt, reducing the need for aggressive follow-ups.
Self-Service Efficiency: Evaluating how effectively patients can manage their billing interactions through digital tools.
Why These Benchmarks Matter
Healthcare providers have traditionally outsourced patient collections, relying on third-party agencies to manage the process. However, as hospital margins tighten, every dollar counts. Cedar’s PFX Benchmarks allow providers to measure and improve their billing practices in a way that aligns with patient expectations.
For example, the patient liability resolution efficiency benchmark assesses how many billing inquiries a provider receives compared to the number of statements sent out. This helps providers understand where the bottlenecks are in their billing process and make necessary adjustments.
A New Era in Healthcare Billing
The shift towards patient-friendly billing is not just about improving satisfaction; it’s about survival in an increasingly competitive healthcare market. Providers who fail to adapt may find themselves losing patients to competitors who offer a more seamless billing experience.
Cedar’s initiative is just the beginning. As more benchmarks are developed, healthcare providers will have the tools they need to move beyond viewing billing as a necessary evil. Instead, they can see it as an opportunity to enhance the patient experience, improve collection rates, and ultimately, boost their bottom line.
Conclusion: Embrace the Change
At ambnj.com, we believe that the future of healthcare lies in embracing change and adopting new standards that prioritize patient satisfaction. Cedar’s PFX Benchmarks are a crucial step in that direction. By adopting these benchmarks, healthcare providers can create a billing experience that is not only efficient but also patient-friendly.
Are you ready to transform your billing practices? Let’s work together to create a healthcare experience that benefits both providers and patients.
Contact us today to learn more about how we can help your organization implement these groundbreaking benchmarks.
