Many patients experience discomfort and stress because of the chronic or acute problems they come to you for treatment. The last thing you’d want is to add to their stress levels or make them feel more out of sorts because of issues related to their bills. The better the financial experience for patients, the more likely they will remain loyal and satisfied.
This raises an important question that you should be asking yourself: What’s the patient financial experience at your practice like? Unfortunately, many patients report unpleasant experiences when it comes to receiving billing statements and making payments for healthcare services.
To maintain patient-perceived quality and improve the flow of revenue in your practice, you’ll want to pay closer attention to the financial experience of each individual who comes to your office for services.
So why is it crucial to optimize your patients’ financial experience? Satisfied patients are more likely to recommend you to their neighbors, friends, and relatives looking for a new doctor, which is essential for broadening your care reach.
Negative Impacts of a Patient Financial Experience
Bad billing experiences cause stress
Keep in mind that the majority of patients have had bad experiences with their medical billing at one point or another. As noted by the Journal of Patient Experience, the patient’s financial experience tends to be confusing and complicated.
This source reports that 87% of patients said they were surprised by a medical bill, per a 2021 study. For example, patients cannot easily tell if their insurance provider has paid any portion of the bill, and what amount remains for them to pay. Or, bills are confusing, lacking clear date ranges, or details for various services.
It’s not always obvious who the correct contact person is when a bill arrives, adding to patient frustration.
As a result, patients spend precious time communicating with their insurance providers or doctors to straighten out exactly what they owe.
The same goes for your staff, whose morale is affected by unhappy patients complaining about confusing bills. It’s possible to reduce employee churn when staff members feel they are working in a calmer environment.
Patient retention and health outcomes decline
Confusing or unexpected bills can cause more than just frustration, they can damage the patient-provider relationship. Patients who feel blindsided by charges or overwhelmed by financial confusion may choose to skip future appointments altogether, disrupting continuity of care.
This not only affects patient health outcomes but can also lead to higher patient attrition rates that make it harder to maintain a consistent patient base.
Reputation can suffer
Billing complaints are among the most commonly cited issues in online healthcare reviews. Patients who feel wronged financially often turn to online platforms to share their experience. This can damage your practice’s reputation and potentially discourage prospective patients from scheduling with you.
Revenue loss and collections trouble
Poor financial experiences don’t just affect perception, they can have a real impact on your revenue cycle. Practices that fail to provide clarity in their billing process may suffer from an unfavorable bad debt-to-collections ratio. The more patients delay or avoid paying their bills, the more resources you must dedicate to collections—and the less revenue you ultimately recover.
