Small Percentage of Uninsured Patients Generate Most of Hospitals’ Self Pay Revenue
December 13 2018 - 6:00AM
A TransUnion Healthcare (NYSE: TRU) analysis found that 30% of
self-pay accounts – those patients without health insurance or
those that have a patient balance after insurance – will generate
more than 80% of the self pay revenue collected by hospitals.
TransUnion released this information as part of a campaign to
highlight the importance of healthcare insurance discovery.
The findings are significant because the number of patients
without health insurance increased to more than 12% at the end of
2017. Furthermore, Patient Balances after Insurance (PBAI) have
been steadily rising – increasing from 8% of the total bill
responsibility in Q1 2012 to 12.2% in Q1 2017.
Following years of decline since the Affordable Care Act was
passed in 2010,1 the uninsured rate grew from 10.9% in Q4 2016 to
12.2% in Q4 2017. As a result, hospitals are taking a much closer
look at cost control measures; however, they still may be missing
the most important part of the picture: an optimized revenue cycle
which ensures earned revenue becomes paid revenue.
This presents a clear opportunity for hospitals to obtain
revenue from accounts that are most likely to be paid in full. More
opportunities may exist on such accounts as between one and five
percent of self-pay accounts that are written off as bad debt
actually have billable insurance coverage.
“Re-evaluating a hospital’s current approach can be a challenge
for revenue cycle leaders, but it can result in a great reward by
maximizing the healthcare providers’ overall return,” said Dave
Wojczynski, president of TransUnion Healthcare. “Determining which
patients or accounts may present the best opportunities for payment
is just one way a healthcare provider can increase their chances of
maximizing reimbursements for services rendered.”
While some hospitals are improving their profitability via cost
cutting, new research also shows that optimizing revenue cycle
procedures may be of even greater benefit. In 2018, cutting costs
was the highest priority for 63% of hospital C-suite executives,
according to a Premier survey. Yet, a recent Advisory Board study
indicated that the typical 350-bed hospital may be leaving $22
million on the table by focusing on cutting costs over optimizing
their revenue cycle.2
“It’s important for hospitals to have systems in place that can
holistically address both profitability and revenue leakage,” added
Wojcyznski.
TransUnion Healthcare’s Revenue ProtectionSM solutions,
including its Insurance Discovery solution, help hospitals prevent
revenue leakage by engaging patients early, helping to ensure
earned revenue gets paid and by optimizing their collection
strategies. The company works with more than 1,800 hospitals and
health systems and has protected over $4.4 billion in net revenue
to date for its entire client base.
For additional information about TransUnion Healthcare or
Insurance Discovery, please click here.
About TransUnion HealthcareTransUnion
Healthcare, a wholly owned subsidiary of credit and information
management company TransUnion, is a trusted provider of Revenue
ProtectionSM solutions that help providers collect more cash up
front and throughout the revenue cycle, and identify and maximize
reimbursement opportunities to reduce bad debt. By leveraging our
data assets, market-leading revenue cycle management technologies,
and deep insights into consumer financial behavior, our customers
are better enabled to reduce uncompensated care, engage patients
early and improve cash flow. www.transunionhealthcare.com
About TransUnion (NYSE: TRU)Information is a
powerful thing. At TransUnion, we realize that. We are dedicated to
finding innovative ways information can be used to help individuals
make better and smarter decisions. We help uncover unique stories,
trends and insights behind each data point, using historical
information as well as alternative data sources. This allows a
variety of markets and businesses to better manage risk and
consumers to better manage their credit, personal information and
identity. Today, TransUnion has a global presence in more than 30
countries and a leading presence in several international markets
across North America, Africa, Latin America and Asia. Through the
power of information, TransUnion is working to build stronger
economies and families and safer communities worldwide.
We call this Information for GoodSM.
http://www.transunion.com/business
Contact |
|
Dave Blumberg
TransUnion |
E-mail |
|
david.blumberg@transunion.com |
Telephone |
|
312-972-6646 |
1
https://www.cbsnews.com/news/more-americans-are-going-without-health-insurance/
2
https://www.advisory.com/research/financial-leadership-council/at-the-margins/2017/06/22-million-opportunity
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