What pops into mind when you hear or read “predictive analytics” or “propensity to pay score”?
Some providers mistakenly assume it means guessing whether a patient will pay based on their credit score. In actuality, predictive analytics is a highly sophisticated science involving hundreds, or even thousands, of publicly available data points—psychographic, demographic, behavioral and historical.
All of this information is carefully gathered, without ever pulling or impacting a patient’s credit score. Then regression modeling synthesizes it into a highly specific propensity to pay score for each individual patient that allows for integration into your communication strategy.
Propensity to pay information also is invaluable when developing your overall payment plan strategy. For example, do you want to optimize your patient approach for adoption or for yield? When you have a crystal clear view of each patient’s situation, this type of optimization is much more effective than previously possible.
That’s powerful information for providers.
When you understand your patients, you are empowered to effectively communicate with them. For some, paying in full in response to a text message might be best approach. For others, a carefully designed payment plan sent in the mail might be the answer. The point is to create the right call to action by tailoring it to individual patient financial capabilities and communications preferences.
When you incorporate a precise propensity to pay insight directly into your communications – and do it consistently – the results are overwhelmingly positive. Increases can be seen in patients paying in full, in paying online (thus reducing print and mail costs), and in overall patient revenue for providers. Providers also experience a decrease in bad debt. It’s not magic, but the predictable result of creating and consistently sending precisely targeted messages to patients along the entire customer journey.
Still using the same broad strokes for patient financial engagement? Then you’re missing the power of predictive analytics and propensity to pay scoring to improve your overall financial picture.