How Focusing on the Patient—Not the Payment—Can Increase Admissions and Patient Payments

In today’s healthcare landscape, a patient’s financial health can significantly impact their physical health. This is why patient financial engagement is just as crucial as clinical care. Patients are increasingly responsible for a larger share of their medical expenses, yet healthcare financial literacy among consumers remains extremely low. Still, most healthcare organizations focus on the symptom—the payment—rather than the root cause of patient anxiety: a lack of healthcare financial literacy. Focusing solely on the payment, lacking price transparency, and failing to communicate clearly about Patient Financial Responsibility (“PFR”) only worsens the issue. These challenges not only delay or reduce revenue but also limit patient access to care. By streamlining and targeting financial engagement, healthcare providers can expand access, improve collections, and enhance the overall patient experience.

Enhancing Patient Payments Through Improved Engagement

THE FACTS: Consumers who understand how costs are determined are more likely to pay. Consumers who are offered personalized payment options are more likely to pay. Consumers who feel confident they’re being treated honestly and fairly are more likely to pay. When care feels more affordable, consumers are more likely to pay.

Healthcare organizations that apply these facts—and prioritize pre-service financial engagement—see improved outcomes. These providers create more satisfied patients and collect over 75% of all PFR. In short, they’re turning patient financial responsibility into financially responsible patients.

The Connection Between Financial Engagement and Admissions

Rising PFR and related cost anxiety are major barriers preventing patients from seeking care. Regardless of affordability, consumers won’t pay for what they don’t understand—and most don’t understand healthcare costs.

Imagine how a patient would respond if their provider proactively communicated healthcare financial literacy, explained billing processes, discussed cost-saving strategies, outlined how insurance works, and offered customized payment options. Healthcare organizations that prioritize financial engagement over merely “asking for payment” see financial satisfaction scores above 97%. Simply put, when providers implement transparent, patient-friendly financial strategies, they reduce fear and uncertainty—and encourage more patients to seek care confidently.

The Status Quo Won’t Work

Patient financial responsibility is not a collections problem or a payments problem. It’s a literacy problem. Here’s why the current approach won’t work:
• Lack of pre-service cost transparency
• Inadequate financial education for patients
• Complicated billing and payment processes
• Fear of surprise or confusing medical bills
• Focusing on the payment instead of the patient
• Chasing payments on the back end
• Limited or unclear payment options

Forward-thinking healthcare providers are moving away from outdated practices. They’re using patient electronic financial records to manage and automate financial engagement. These tools enable segmentation by “situational risk” (think population health—but for finance) so providers can deliver hyper-personalized financial education, payment rules, and flexible options.

Authorized staff across departments can collaborate on each patient’s financial experience—from pre-service through post-discharge. These records also offer the fastest way to establish an enterprise-wide digital payments infrastructure that meets patients where they are and how they prefer to pay.

Strategies to Improve Patient Financial Engagement:

1. Patient Electronic Financial Records: Implement technology for workflow automation, financial risk stratification, payment program enrollment, and compliance. This enhances efficiency, reduces cost, and enables performance tracking.

2. Price Transparency: Provide clear, upfront cost estimates to empower patients and prevent disputes. It’s also the law.

3. Flexible Payment Programs: Offer interest-free payment options tailored to patient needs, making expenses feel more manageable and increasing timely payments.

4. Digital Payment Solutions: Create a digital payment infrastructure across all platforms (web, mobile, portal, POS, CRM, EMR, RCM) to meet patients wherever they engage.

5. Pre-Service Financial Literacy Counseling: Educated patients are more satisfied and more likely to pay on time. Counseling reduces confusion and improves collection rates.

6. Automated Inducement Compliance: Digitize SOPs, good-faith PFR estimates, and three regular collection efforts to protect against payer audits and enforcement.

The Benefits of Focusing on the Patient, Not the Payment

When healthcare providers streamline patient financial engagement, they see real benefits:
• Higher Admission Rates: Patients are more likely to seek care when costs are clear upfront.
• Improved Revenue Cycle Management: Timely payments reduce accounts receivable and improve cash flow.
• Enhanced Patient Satisfaction and Loyalty: A transparent, patient-friendly experience builds trust and encourages referrals.
• Reduced Administrative Burden: Automation frees up staff to focus on care—not billing disputes.

In today’s healthcare environment, financial engagement is essential to operational success and patient satisfaction. By embracing transparency, flexible payments, digital tools, and proactive communication, providers can eliminate financial barriers, increase admissions, and ensure timely collections.

Ultimately, when providers focus on the patient—not the payment—they improve outcomes, strengthen revenue cycles, and build lasting relationships.