These are challenging and highly stressful times for people around the world – and in the healthcare industry in particular. The physical and emotional toll that COVID-19 is taking on healthcare providers—not to mention patients and families—is devastating. We would like to continue to articulate our gratitude to all healthcare providers for their dedication and commitment as society works to navigate a path forward in the face of this crisis.
Since the onset of COVID-19, RevSpring has conducted statistical research looking into any correlation between a patient’s likelihood to pay before COVID-19 and whether those same patients are now affected financially due to the pandemic.
Looking at economic, employment and other household income data of 370 million US consumers, the data revealed that nearly 30 percent of people with a typically high likelihood to pay their bills are in financial distress due to the coronavirus. These patients most likely have lost their jobs and do not have sufficient savings or access to cash. They are more apt now to struggle to pay their bills, including those from healthcare providers. The findings confirmed the need for a more precise way for healthcare revenue leaders to navigate payment communications and strategies during this unpredictable and rapidly changing financial environment.
The good news is that 70 percent of the typically high likely to pay patients have not been financially impacted by current events. They still are working or have strong savings, or both. Revenue cycle managers do not need to change their current collections strategies with these patients, but they do need to identify them among the other 30 percent who require alternative strategies due to COVID-19.
Filling the gaps in traditional propensity to pay models by factoring in these additional economic variables, revenue cycle leaders can understand who is struggling now and alter their communications strategies with this group. Dynamic insight allows healthcare organizations to communicate most appropriately with those in need, and to provide payment options that fit best during this unprecedented fiscal reality.
Other interesting stats from a recent Gallup poll:
- An estimated 25% of the US adult workforce has been laid off, a figure not captured by unemployment rates as these adults are likely to view the layoff as temporary and are therefore not actively seeking work.
- More US consumers are concerned about being able to pay their rent as a result of new economic conditions, more so than during the 2008 financial crisis.
- Only 41% of adults report that they only have about one month of savings.
RevSpring is here to help. Please reach out to us for more information on how to find your patients who may be struggling financially due to COVID-19.