More Hospitals Working with Patients to Pay Bills

by Mike Bevel, CollectionIndustry.com

In a bid to improve public image, as well as increase collections, hospitals are turning away from former aggressive debt collection tactics — slapping liens on patients’ homes, seizing their bank accounts and arresting debtors who fail to appear for a court hearing ? and trying something new: working with patients to pay their bills.

In a report published by Kaulkin Ginsberg?s Research Group, Research Director Paul Legrady wrote, ?Companies that emphasize more empathetic and patient-friendly collections processes, invest in collector-training programs and integrate legal compliance efforts thoroughly with collection operations turn regulatory compliance into a competitive advantage and are most likely to succeed in this market over time.? Kaulkin Ginsberg is the parent company of CollectionIndustry.com.

To assist hospitals along this kinder, gentler path, the American Hospital Association released a set of guidelines in 2003 on hospital billing and collection practices. While recognizing that unpaid healthcare bills end up costing everyone more in the long-run, the guidelines suggested things like clearer communication about payment programs and helping patients qualify for and enroll in existing coverage options.

“We put out the guidelines after a lot of conversation within the field to reflect where the field stood, and we asked hospitals to take a look at the guidelines and to look at confirmation of those commitments,” Alicia Mitchell, spokeswoman for the American Hospital Association, told the Dallas News?s Pamela Yip. “The majority of hospitals have done that.”

Such steps make good business sense, and the hospital industry has conveyed that message to the debt collectors it hires, Ms. Mitchell said.

“Over the years, a lot of that has been done by outside companies, so we asked hospitals to take a look at the companies and to make sure that their policies and procedures reflected the mission of the hospital,” she said.