Health systems have always faced bad debt—from charity care to insurance claim denials—and COVID-19 has exacerbated its impact on revenue. While hospitals and clinics are responsible for providing care to populations, they can still generate revenue from care delivery without compromising care accessibility or quality. An effective bad debt management approach provides the patient with every financial resource possible and allows the health systems to focus less on payment and more on delivering the best care. With four tactics, health system leadership can identify bad debt and implement effective processes to minimize it without undue burden on patients:
- Identify bad debt exposure early.
- Educate patients about alternative payment options.
- Leverage technology within the workflow.
- Understand the true cost of care.