August 30, 2012 •Brian Watson
Let’s face it: patients don’t always have the most positive impression of the billing process. And that’s probably a charitable way of putting it.
Keeping track of what they paid at treatment, what funds their insurance contributed, and what they owe directly (and why) can be a tricky proposition for patients. Add in multiple bills – often from more than one doctor or care provider – and it’s easy to see why some patients need a spreadsheet to stay on top of everything.
And it only makes things even more difficult when the process hinges on patient statements that are confusing or frustrating (if not darn near indecipherable).
The Costs of Subpar Patient Billing
Unfortunately, the data only backs up patients’ lukewarm history with healthcare billing. According to the 2011 Connance Consumer Impact Study, only a dismal 21% of patients were fully satisfied with their patient billing experience. And that rate drops by 10% between treatment and post-revenue cycle activities (i.e. when patient statements are printed and mailed and payments made).
That cold, hard truth can have a very real effect on everything from patient satisfaction to organizational profitability. Like a great joke ruined by a badly bungled punch line, subpar billing ops can harm the hard-earned goodwill you accumulated during the treatment process.
In order to ensure that doesn’t happen to your organization, you need to know that your patient billing practices are above reproach. Or at least the very definition of solid.
When it comes to patient statements, there are a few common design and messaging issues that tend to get under the skin of patients a bit. (Again, I’m being charitable here.) To help you deliver financial correspondence that simplifies and accelerates the payment process, we’ve complied 6 of the worst patient statement offenders as a kind of guide as to what not to do. If you want to be anywhere near patient friendly, ensure that your statements steer clear of the following snags.
1). It’s Messy. The more information crowded into a document, the harder it is for the viewer to quickly identify important information and act on your instructions. People don’t want to work or think more than absolutely they have to.
But that can be a problem for patient statements. From the payment stub, to transaction data, to customer service contact details, there’s no shortage of important on-statement information to go around.
So organize information into small, thin-slice chunks through the use of white space, color, and call-out boxes and graphics. Then provide a little bit of info and let patients tell you if they want more (i.e. providing a summary transaction detail and the ability to request an itemized statement). And finally, eliminate all statement copy that isn’t absolutely essential. People prefer small blocks of text that are easy to scan. Use short line lengths, short blocks of text, and liberal use of headers and sub-headers.
2). Payment Information Isn’t Clear. The objective of a patient statement is to encourage balance payment. So it’s particularly difficult to understand why that information would be buried within a transaction detail or lightly emphasized on the payment stub. Payment information (what’s owed and by when), should be up-front and easy to find.
Use your patients’ visual senses to grab hold of their attention. Bright colors and large font are a great start. Red is a particularly attention-grabbing color, but if used in excess can actually detract from tasks and increase anxiety. So reserve it for critical information like balance due and due date.
3). The Account Summary Is Lacking. Don’t assume that your patients are in-the-know on what they’ve paid, what their insurance has covered, and what they still owe you. Human memory is complicated, not to mention unreliable. It fades quickly (usually in several seconds to a minute, without additional rehearsal), has a limited capacity (on the order of 4-5 items), and is prone to errors and exaggeration on recall.
Answer any questions about the status of patients’ transaction before they become a service-call-worthy issue by clearly addressing key account details in their billing summary. At minimum, this section of your statement should include the previous account balance; any new charges pending; insurance payments, adjustments, and pending payments; what the patient has already paid on the balance; and his or her current account balance due.
And don’t forget: this is important information. Really important. So give it the proper emphasis by using attention-grabbing elements, like a call-out account summary box or separation from the rest of the statement through white space and color.
4). The Stub Is Clunky. People make mental models based upon past experience to simplify certain common tasks. And bill payment is a really common task. Don’t load down your pay stub with excessive details that might get in the way of quick payment or, worse yet, lead to patient errors.
Keep it simple: provide only the information the patient will need to submit a payment and that you’ll need to process it. And always, always provide a well-defined perforation. Trust me: being forced to track down scissors to send in a payment? Not patient friendly. Having to perform an impromptu tape job to attach an accidentally torn chunk of the statement stub? Nope, definitely not patient friendly either.
5). It Uses Overly-Technical, Jargon-Heavy Copy. A certification in patient finance shouldn’t be a requirement for understanding a statement. Drop the industry-speak in favor of plain, common-use language that patients with a sixth-grade reading level can easily understand.
6). Contact Information Is Hidden. Patients will inevitably have billing questions. That alone can be frustrating enough. What’s so much more frustrating? When a patient has difficulty finding your contact information on the statement to get that question answered.
Ensure that your contact information has a prominent placement and easily stands-out. Then repeat it often - both more than once on the first statement page and on each page thereafter. And include all the service channels you offer: an address for in-person visits, toll-free, local, and Spanish-language phone options, and any online customer service options you offer. In other words: make it easy to patients to contact you on their own terms.
By now, you should have a good understanding of the patient statement elements to avoid like the plague. But what actually makes a statement patient friendly? Learn more about the clear, clear, concise statement design traits that help you enhance and accelerate revenue collection in our free whitepaper, Building a Better Bill: Why Good Statement Design Matters (And How You Can Get It).
What other statement traits do your patients absolutely loathe?