The Risks Of Rising Self-Pay And 10 Ways To Keep Your Hospital Safe

By Ken Carr, Vice President, Revenue Cycle Management at Change Healthcare

As businesses of all sizes struggle with skyrocketing healthcare costs, employers are looking to employees to help shoulder the burden, often by shifting to Consumer-Directed Health Plans (CDHP), which include higher medical deductibles and a higher share of payment responsibility for the employee. There’s one big problem with this approach, however: A significant number of patients can’t (or won’t) pay for healthcare without employer subsidies. Research indicates that consumers at all income levels are more likely to pay for their mortgages, insurance, loans, utilities, cable TV, Internet, lawn care, and newspapers before paying their healthcare bills. It’s a dangerous cycle for healthcare providers, health plan providers and consumers alike.

Add to this the increased costs and reduced margins that will come as healthcare reform extends coverage to millions more people, and two things are likely for hospitals: more bad debt and more difficulty getting payment for services.