Patient Friendly Billing Releases Consumerism In Health Care Report

June 28, 2006

Patient Friendly Billing®, a national project to make healthcare billing clearer to patients, has released its Consumerism in Health Care report. The document includes an 11-point call to action for hospitals and physicians to take on the impact of consumerism and help patients better understand the financial aspects of their health services.

The rising cost of health care--and the increasing share borne by the patient--is a key driver behind this radical change. It forces patients to be much more involved in their care decisions and active participants in demanding price and quality information. The healthcare industry can expect consumerism to have substantial impacts throughout the entire revenue cycle, from the point of pre-registration through patient account settlement.

"Consumerism gives providers the opportunity--and challenge--to enhance the patient experience," says Dr. Richard L. Clarke, president and CEO of HFMA. "This new approach presents many benefits to the healthcare system. The goal of this report is to present practical strategies that will help the healthcare industry adapt to consumerism and take advantage of those opportunities."

Through the report, HFMA and other Patient Friendly Billing project partners encourage providers to review and consider on how to successfully transition to a consumer-oriented revenue cycle. The report outlines 11 areas to consider when preparing for consumerism in health care.

• Adopt the guiding principles of the Patient Friendly Billing project consumerism initiative;
• Embrace the possibilities consumerism presents to help patients better understand and more effectively use health services;
• Work towards transparency in pricing;
• Simplify charge systems;
• Make access and scheduling functions seamless, respectful, and convenient;
• Upgrade consumer service skills among financial services employees;
• Improve communication with patients concerning prices and payment responsibilities;
• Renegotiate contracts with payers based on rational pricing;
• Collaborate with payers on systems to facilitate real-time, electronic exchange of key information, including patients' benefits, coverage, and status;
• Engage with government to develop national standards for comparability of price and to advance universal coverage; and
• Advocate for regulatory revisions in line with the key objectives of consumerism in health care.

"Addressing the implications of consumerism is a vastly complex endeavor, requiring collaboration among government, providers, payers, employers and consumers themselves," says Dr. Clarke. " It is up to stakeholders in the healthcare industry to work together and fulfill their mission of patient care."

Additional Resources

• For a complete copy of the report or information concerning the Patient Friendly Billing project visit www.patientfriendlybilling.org.   
• Improving the Revenue Cycle in an Era of Consumerism: a PowerPoint presentation to brief your institution's executives and board on the June 2006 Patient Friendly Billing report.