Collecting Co Pays & Deductibles Urgent Care and Emergency Department Co Pays and Deductibles Don't Need to Equal Write Offs!
 | $400,000 for every hospital in the USA
On an annual basis, it is estimated that hospitals write-off more than $2 billion per year in co-pays and deductibles. That's an average of $400,000 for every hospital in the country! Average collection rates on ED co-pays and deductibles are less than 33%. When you factor in the billing cost, which can be anywhere from $2 to $15 per patient charge, hospitals may only be netting 15% to 20% on these charges. It doesn't have to be this bad. |
| The Bottom Line
Most hospitals seem to view the collection of co-pays and deductibles generated out of the emergency department as a lost cause. Write-offs of 2/3 of the co-pays generated are the norm. In some cases, hospital administration simply ignores the issue, because their data on collection rates are not transparent by department or because of a perception that little can be done to improve the situation. But with some relatively simple, low risk strategies, ED co-pay collection rates can be significantly improved. The resulting boost in cash flow can have a meaningful impact on the hospital's profitability. Higher collection rates also mean fewer accounts turned over to collections and better patient relations all around. As hospitals continue to face increasing financial pressures, it is clear that seizing an opportunity to realize hundreds of thousands in additional revenue through improved ED co-pay collections is simply smart management. CONTACT US for more information on a straightforward, patient-friendly approach to increasing your bottom line by collecting co-pays, deductibles and self-pays. |
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