Providers
Increasing healthcare insurance premiums and high deductible insurance plans are resulting in higher patient debt and undermining hospital cash flow.
Accounts Billing Service (ABS) provides a service at no additional cost to the hospitals, called HARP, Healthcare Affordable Repayment Plans. These plans offer patients an affordable interest bearing finance option to pay off their medical bills in 12-48 months (at client discretion). The nominal interest added also incentivizes many patients to opt to short term payment plans without interest or finance charges.
According to Modern Healthcare, in a few years providers could see a 50% increase in the amount they’re receiving directly from patients. As the healthcare industry climate changes, many providers are searching for a new solution to reduce bad debt assignments while increasing revenues.
Learn more about this program in this article from insideARM.
Undermining Hospital Cash Flow:
(source: Kaiser Family Foundation)
By adding HARP, hospitals are able to accelerate repayment of patient balances, plus gain a portion of the revenue from interest paid.
The most important benefit of this program is that you’re able to maintain positive customer relations. Your organization’s main goal is to keep your patients healthy and happy. Let ABS assist them in remaining financially healthy.
By opting into the HARP program, it allows patients to:
- Protect their credit
- Remain out of bad debt collection
- Finance medical bills at a low interest rate. While helping your patients, you’re generating revenue and improving collection rates. At no additional cost, you will see a positive impact on your hospital’s bottom line.
- Extend their time to pay off medical bills
While helping your patients, you’re generating revenue and improving collection rates. At no additional cost, you will see a positive impact on your hospital’s bottom line.
So, how does this program work?
After patient care is provided, patients may request a payment plan that exceeds 6-12 months. If the patient agrees to be contacted by ABS, who is now acting as your loan officer, you will transfer the patient’s data to ABS. Once received, ABS will send a welcome packet to the patient including legal documents to sign and a coupon payment booklet. If the patient agrees, signs and returns the packet, they will begin paying as per their signed agreement. If they opt out of this option, their account will be closed and will be placed in bad debt collection. If they miss a payment, they will begin to receive late payment reminders.
Loan Calculator
Third Party Repayment Calculator provided for demonstration purposes only by Financial-Calculators.com
HARP Representatives will provide actual Repayment Plan documents to patient in mail upon provider request
Using the calculator is straight forward. User enters a “loan amount”, “number of months”, “annual interest rate”. The calculator calculates the number of monthly payments.
The “Payment Method” determines when the first payment is due. With the default selection, “End-of-Period”, the first payment will be due one month after the loan is made. If “Start-of-Period” is selected, then the first payment will be due on the loan date.
The term (duration) of the loan is expressed as a number of months.
- 60 months = 5 years
- 120 months = 10 years
- 180 months = 15 years
- 240 months = 20 years
- 360 months = 30 years
Need more options including the ability to solve for other unknowns, change payment / compounding frequency and the ability to print an amortization schedule? Please visit, https://AccurateCalculators.com/loan-calculator
Currency and Date Conventions
All calculators will remember your choice. You may also change it at any time.
Clicking “Save changes” will cause the calculator to reload. Your edits will be lost.
The Benefits of Joining HARP
Preserves cash flow. Improves customer relations. Generates income. Improves collection rates. Decreases debt write-offs. Reduces the need for extra servicing staff. No extra expense.
Organization's Responsibilities
So what’s your healthcare organization’s responsibility? Your part in this free service is very minimal as explained below.
- Offer long term payment options to patients needing their plan to exceed 6-12 months.
- Ask patient if you can have ABS send a welcome packet to them. Explain that ABS acts as your loan officer, specifically working with your hospital to help patients easily pay back their medical expenses.
- Once patient agrees, transfer patient data to ABS via secure email, call transfer or web portal.
HARP will handle the account from there at no added expense to the organization. Our goal is to accelerate medical repayment of 100% of your principal balances billed; plus share a portion of the revenue from interest paid.
Simplify Your Billing
Whether you need a Revenue Cycle Management specialist or someone to handle all billing processes, Credit Bureau Systems can help build a package of services to meet your organization’s needs. Increase your debt recovery rates and simplify your billing process.