Advances in surgical techniques, anesthesia and pain management are enabling more patients to recover from surgery safely and comfortably in their own homes. As a result, more than half of all surgeries performed in the U.S. are now done on an outpatient basis.
The Ambulatory Surgery Center Association (ASCA) plays an important role here—helping ensure Ambulatory Surgical Centers (ASCs) are equipped to deliver the best possible care while also providing resources and education to help ASCs manage their operations effectively. Some of the organization’s good work was on display last month at its annual conference in Orlando. Several members of Flywire’s healthcare team had the opportunity to attend and meet with members from dozens of different ASCs.
This was Flywire’s first time at the event and one of the things that stood out immediately in our conversations was that some of the steps around improving affordability, engagement and self-service in the patient financial experience were somewhat new to this group. While many of the hospitals and health groups we work with have been pursuing these goals for some time, the ASC industry may not be as far along and there’s a huge opportunity for those that grasp the value. A few things in particular stood out.
1. ASCs (and their patients) are looking for new ways to approach offering longer payment terms through financing
It’s not news to anyone that surgeries are expensive. Higher patient balances have a bigger impact on ASC cash flow and create more need for patient payment flexibility.
In our conversations, we heard a lot of dissatisfaction with the typical “medical credit card” and loan financing options available. ASC execs cited the added costs for both the patient (in high interest rates and fees) and ASC (in fees). What’s more, the financial service providers of these solutions often disintermediate the ASC’s relationship with their patients, because they divert them from the ASC’s payment experience. Most importantly though, in the view of the ASC execs we spoke with, is that these types of financing are very limited eligibility-wise, and not enough of their patients can qualify for the financing offered.
Some ASCs are supplementing these types of financing solutions by offering no-interest, installment payment plans on their own. These plans are typically limited in length, based on the financial liability the ASC can responsibly take on, but they do provide a very reasonable and affordable option for many patients. In many cases it can be the difference between going through with a surgery or not. But these come with their own challenges for the ASC – the manual effort required to track and manage them. ASC staff members are typically using spreadsheets and calendars, creating a huge resource burden and adding to operating costs.
2. Financial engagement is relatively new for ASCs, but of great interest
ASCs handle different types of payments, depending on their area of specialization. For example, some are dealing primarily with prepayments where insurance eligibility, co-payment and patient responsibility are clearly understood up front. Others may also deal with estimated payments made at the point of service, or post-treatment payments in the cases of emergencies or unplanned follow-on procedures.
In any of these scenarios, the patient owns a larger share of the cost for their procedures, and those bigger sums make the payment process more complex. As such, ASCs are looking for ways to engage with their patients about their financial responsibilities throughout the process. They are looking to inform them about their responsibilities earlier, via the patients’ preferred communication channels, offer up the different payment and financing options available to them, and track any outstanding balances. These are good ideas in concept, but very difficult to follow through on without the proper level of automation in the process. Otherwise, the burden on staff is simply too great.
3. There is an opportunity for more self-service in the patient financial experience
As we referenced above, some of the well-intended efforts of ASCs to improve the patient payment experience are hampered by the manual resources required. Modern automation can absolutely address many of these challenges, and one of the overlooked aspects of this is patient self-service, i.e., putting patients in control of the payment process.
Research shows that the more a patient understands their financial responsibility, the more likely they are to take care of that responsibility in a timely manner. Of course, it’s not as simple as telling the patient they are in charge. Doing so requires accurate pricing transparency and estimates; the ability for patients to set up their own payment plans online based on their specific procedure, insurance coverage and financial circumstances; and timely communication and notifications.
Flywire works with many of the leading healthcare providers in the U.S. to modernize the patient financial experience and put the ideas outlined above into action. We apply this same expertise to enable ASCs to:
- offer intelligent payment plans to patients, proactively taking into account the procedures involved and the patient’s financial situation.
- offer integrated financing with longer, interest-free payment terms when appropriate, that are presented within familiar patient payment portal
- allow patients to set up these payment plans online via self-service, making it easier for the patient and ASC staff.
- leverage what they already know about their patients, e.g., the communication channels they are most likely to respond to, how they prefer to pay their bills, whether they would benefit from a payment plan—to enable more proactive and personalized engagement.
All of these modern payment capabilities help speed revenue cycles and reduce collection costs for ASCs while improving the overall experience for the patient.
Learn more here about how Flywire can help.