[Case Study] Munson Healthcare

How Munson Healthcare transformed their patient engagement

Munson Healthcare operates nine hospitals across northern Michigan, including the nationally recognized Munson Medical Center in Traverse City.

Munson was facing nagging challenges from the sharp rise in patient pay due to the growth in high deductible health plans. Credit card payments were at an all-time high, risking breach and fueling high PCI compliance costs. The resources available for pursuing outstanding payments charged the hospital high fees, drained staff time, and risked alienating patients.

Munson moved to upgrade their patient financial experience with Flywire's patient engagement platform. Within seven months, Munson realized significant improvements in settling patient balances, patient engagement and securing credit card payments.

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Munson realized that they needed to adjust their approach to address these challenges:

Typically sent out three patient statements before turning accounts over to early-out at day 65.
Paid up to 15% on payment plans financed through a loan financing company, and had full recourse on defaulted accounts.
Average payment plan term was 24 months, with a default rate of about 18%.
Had launched new guidelines for payment plans, but had limited ability to manage them.
Unable to smoothly manage new balances, adjustments, pull-backs and late charges—resulting in tedious manual processes for Munson customer service reps (CSRs) and frustration for patients.
CSRs entered patient payment data directly into a vendor web service, a process that increased their PCI compliance costs and put them at risk for costly data breaches.

Solution and results

Segmented payment plans

Flywire’s proprietary segmenting engine automatically analyzes a patient’s payment history and relevant credit data to determine a monthly payment amount they can afford. The program delivers a range of tailored plan options to the patient with their first statement and patients self-activate their preferred offers through online, mobile, or paper. Any new services are automatically rolled up into their existing plan.

65%patient activation rate
26%reduction in early-out placements
12%improvement in patient pay cash
58%reduction in average payment plan length (10 months—down from 24)
$1Meliminated in annual spending

By automatically offering tailored payment plan terms and self-service activation, patients don’t have to call and ask for a plan. This provides a great patient experience, while making our operations more efficient. And with the increase in credit card payments, Flywire’s integrated payment solution allows us to securely capture, store, and process card data across our organization.

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