Starting a private practice is viewed as one of the most rewarding accomplishments for a physician or medical professional. But with declining reimbursements and the mushrooming challenge of collecting ever higher costs directly from patients, providers are discovering that a clear patient financial policy is increasingly required to communicate your patients’ financial obligations and increase patient collections. Everyone prefers clarity over confusion. The financial obligation a patient has with their medical provider should be no different. In fact, as reported by a Mayo Clinical Executive, 93 percent of patients who liked the billing process were satisfied with the clinical, whereas those unsatisfied with billing reported 63 percent satisfaction with their clinical care. When you frequent any business, you have a very clear understanding of the costs associated with the product and/or service you are purchasing. Medical services should be no different. A clear patient financial policy is designed to outline how your practice bills for care, and your patients financial obligations for services rendered. Medical school might not cover business planning, but providers who make private practice work are those willing to educate themselves about the business side of healthcare. Following are a few considerations when drafting your patient financial policy: Decide ahead of time if you’ll offer charity care, and if so how much. Don’t allow your non-paying patients to take advantage of your compassion. Take the time to outline your expenses and expected income. Seeing it all in black and white can help you decide where you might…
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