Guide to Outsourcing:
Six Important Points to Consider in Selecting a Vendor
to Manage Patient Billing and Payments

With IT departments intensely focused on a healthcare organization’s critical mission delivering quality care, some back office functions may not operate at the desired level of efficiency.  Consider, for example, your billing and payment processes. Though vital, these functions can be time consuming and costly. As a result, many organizations have sought to outsource it, knowing there are significant opportunities for saving money and time.

Moreover, many healthcare systems have recognized that in turning to outside experts, they can take a fresh look at their statements to create a personalized patient experience through innovative design, dynamic messaging and the convenience of electronic payment capture.

Things to Expect in a Billing and Payment Solution:

• Reduction in statement and billing costs – especially with the rising cost of postage
• Flexibility for traditional or online presentment – based on patient preference
• Privacy and security of hosting and storing patient billing information
• Faster billing and payment – improved cash flow
• Accuracy and quality in billing presentment
• Targeted messaging –  specific to patient’s condition and needs

Whether you’re looking for print or electronic delivery, or both, selecting a vendor that provides the most comprehensive statement and billing solution will give you the most flexibility in the long run.   
But one-stop shouldn’t mean one-size-fits-all, because your statement and billing solution should be tailored to fit your health system’s specific needs, both current and long-term.  Read on to learn what should be top of mind when considering a statement and billing solutions provider. 

Consider Opportunities for Cost Reduction
Skyrocketing United States Postal Service (USPS) mailing costs make the cost of doing business steeper.  When it comes to statement and bill processing, however, the costs can be magnified due to volume alone.  Look for experts who can not only identify postage savings, but guarantee you a postage rate while refining your statement and bill format to further cut costs.  For example, duplex printing capabilities mean you can use both the front and back of your billing statement to communicate with patients, while using less paper and reducing postage costs.

And, by taking the solution one step further with document outsourcing, you don’t need dedicated resources or expensive equipment to fulfill your billing needs. If your healthcare network spans multiple states or regions, you’ll want to look for a vendor with strategically located production centers with data processing, digital printing and distribution to manage and deliver your statements through a traditional print and mail process, via online presentment or a combination of the two.

Assess Vendor’s Capability to Assure Privacy and Security
With strict HIPAA requirements governing privacy, the security of patient data is something no organization can take for granted.  In selecting a statement and billing solution provider, it’s critical to look for vendors that follow the Statement on Auditing Standards (SAS) 70 Type II, the industry-standard audit that demonstrates effective internal controls, the highest security standards, and the tightest quality procedures to process sensitive, patient data.  Close attention should also be paid to the handling of credit card, ACH, and PIN-less debit payments. 

Such providers should be willing and able to provide a complete assessment of organizational risk related to your current bill and payment processing choices, to not only ensure any areas for improvement are clearly identified but also that the solution is tailored specifically to the needs of your organization.

Consider Speed to Market, Impact on Cash Flow
 Cash flow is the lifeblood of an organization… and the only way to make sure that lifeblood is healthy is with a vital, up-to-date, payment process. The greater your HIM Hold Days, the less opportunity your organization has to leverage an improved cash flow. By giving patients the option of Electronic Bill Payment and Presentment (EBPP), your healthcare organization can secure payments on a more timely basis and help to shorten your revenue cycle.  At the same time, EBPP solutions can further enhance your organization’s marketing capabilities and help build lasting relationships with patients, while reducing costs associated with printing and postage. 

Examine Service and Efficiency Capabilities
Whichever billing and payment solutions are right for you, evaluate your vendor against timeframes like these:

• Paper-based payment cycle—paid in 13 days
• Electronic statement billing—paid in 7 days
• Full EBPP from Standard Register—paid in 1 day

Select a billing and payment partner that has the technology, resources and secure environment to support EBPP, with complete e-services, including:

• Document conversion from print to PDF or HTML
• Electronic document presentment
• Encrypted e-mail statement delivery
• Hosted archiving and e-notification
• Electronic payment
• CD-ROM production and archiving services

Evaluate Accuracy and Quality
You should be able to quickly find the answers to important quality-assurance questions, such as:

• How many patient complaints has your organization received about the billing process or the billing statement in the last six months?
• What percentage of patient calls pertains to your billing process or billing statement… and what are the top five questions or issues?
• Are there any reported instances where one patient got another patient’s bill or statement?

With automated processes and multiple validation technologies, your statements should be verified for accuracy before entering the mail stream.

Consider Capabilities for Enhancing Patient Communications
Throughout your patients’ stay, your hospital staff dedicate themselves to providing them quality care and creating satisfying, personalized experiences.  As you seek to develop relationships with your patients and their families, use your statement mailing to deliver relevant information to your patients, such as:

• Answers to common questions related to their condition
• Personalized tips on follow-up care and recovery
• News of  relevant rehab or disease management programs
• Information on specialized facilities, related to their condition
• Other health system news
• Pertinent regulatory information

Select a billing partner that can customize specific messaging on your patients’ billing statements. Perhaps you need to target various offers or information to specific patient groups. It should be simple and cost-effective.

Evaluate the Overall Impact of Outsourcing
With  cost-effective, secure, fast billing and payment processes that are tailored to your patient’s needs, you can get your bills out faster, get paid faster, and connect with your patients in  ways that inspire their confidence and build their loyalty. Ultimately, you benefit as patients return to take advantage of your specialized services and programs, and as word of their positive experiences spreads to friends, family and associates.

At the same time, by outsourcing this important business function, you can focus more of your resources on your primary mission of providing quality patient care. So take your time.  Give careful consideration to vendor capabilities and how they align with your goals.  The right vendor will get you where you need to go.

Looking for ways to streamline your current billing and payment processes to improve cash flow and reduce costs?  Interested in learning how you can use your statements and bills to enhance the patient experience and drive revenue?  Standard Register will help you get started with a no-obligation review of your processes. Take that first step now.  Contact us via e-mail. Or, call us at 1-800-755-6405.