EZPAY Advantage® Case Study

Healthcare Patient Financing Solutions:  A Case Study

 

WHEN IT COMES TO PATIENT FINANCING…WHAT YOU SEE IS NOT ALWAYS WHAT THE PATIENT GETS

 

This study demonstrated the cost benefits of using EZPAY Advantage^® “no-interest” non-recourse programs. Specifically,

• Statistical analysis showed an increased ROI that yielded a > 26% better return when bench marked against net collections of a similar patient A/R sampling
• Underlying A/R was immediately relieved to cash within three business days
• Confirmed an increase in top-line revenue of 10.5% for practices that provided EZPAY Advantage® at time of service which had previously refused patient care
• The implementation of EZPAY Advantage® generated an additional $571,000 in new incremental revenue
• Payments were settled to the practice within three business days, an infinite improvement when compared to industry historical and statistical collections/aging data

The study was conducted from a sampling of $2,198,000 in patient financing paid out to the participating practices at final bill post Explanation of Benefits (“EOBs”) from a group of randomized patients who opted to use EZPAY Advantage®.

Additionally, the study focuses on: (a) the optics of  small dollar value transactions (“SDVT”)   and their carrying costs, (b) their proliferation, (c) current methods used to mitigate risk exposure from under performing SDVTs,  (d) viable financing alternatives to current methods used in tackling SDV transactions such as collections, and (e) consequential risk for under/over allowance for bad debt, etc. 

 

EXECUTIVE SUMMARY

The continual increase in patient responsibility portions has grown alongside the competitive landscape of the entire healthcare community. Enterprise systems compete against other healthcare organizations for the same patient revenue dollar.

Healthcare organizations have been exploring a multitude of ways to assist patient and practice needs by offering a spectrum of products that include self-financing, prime lending, and other options such as opaque financing programs.

At issue was a growing portion of patient responsible A/R generated at both time of service (at admissions or pre-care) and at Final Bill post EOBs that end up as a non-performing asset and ultimately placed for collections. Collection companies, being paid based on performance, use a multitude of tactics to collect. Win or lose, both practice and patient lose and the collection company wins.

Furthermore, there are over 70 million individuals considered to be part of the subprime and under-served market. These individuals are not able to qualify for competitive loans and often  find themselves preyed on by unscrupulous lenders with opaque loans offers that fail to disclose the true loan rates, exorbitant late fees, service charges, and default rates.

Many patients often feel ambushed by the provider and have no problem venting their frustrations through social media, product review blogs, and organizations like Better Business Bureau and Rip Off Report. Reputational exposure has become an increasing concern for practices who recognize the “patient as consumer” model and patients’ easy ability to publicly post their comments and opinions.

Recognizing all of these issues, a large group practice came to Secure Payment Systems to evaluate, assess, and collaborate on a program that would:                                              

• Improve patient-practice experience and goodwill                                                                       
• Convert A/R to immediate cash on a non-recourse basis                                                            
• Provide patients with a realistic and credible non-interest payment option                              
• Reduce the practice to collections exposure                                                                                   
• Simple and fast approval for a larger swath of patient credit profiles

The objective of the practices who took part in this study, was the creation of a best in class no-interest solution to meet their patients’ over-all needs when it was determined their current financing vendor declined >50% of its patients’ applications.  Additionally, the entire entire application/approval process had become cumbersome and less transparent.

The case for a broad-based simple financing solution was substantiated.  Patients demonstrated they were more inclined to make the payments when practices were willing to provide no-interest financing.

 

STUDY RESULTS

In summary, Secure Payment Systems created a system that provided the following product benefits in addition to the aforementioned requirements:  

• Generate additional revenue by accepting more patients at time of service
• Reduced patient “turn-downs” and denial of service   
• Created a fast, easy to use, and practical lending solution for both practice and patient
• Achieved a significantly high approval rate
• Create a positive internal rate of return and ROI for practices
• Created Good-will and patient loyalty
• Generated positive cash flow and with positive impact to EBIDTA
• De-risked patient A/R by guaranteed (non-recourse) payment to practice  

 

For a complete copy of the study, please CLICK HERE to request the information and a full version will be provided at no costs.

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