Enhancing the Patient Experience in a World of Healthcare Consumerism
Jim Quist, Chairman and CEO, CarePayment
August 22, 2011
The statistics have been heard before: Health insurance premiums have nearly doubled since 2000, a
rate three times faster than wages. Enrollment in high-deductible plans more than doubled from 4.5
million in 2007 to 10 million in 2010. While reform efforts will attempt to cap soaring
out-of-pocket expenses, these trends have contributed to an irreversible phenomenon - the rise of
healthcare consumerism.
Because patients are assuming more financial responsibility for their healthcare, they are
becoming less passive and reliant on healthcare providers for guidance. Patients increasingly
search for substitutes to traditional services, seeking lower-cost options that do not sacrifice
quality. They are more likely to switch doctors, hospitals and insurance plans in order to find
better value. They want to compare multiple options for care, and want to immediately execute on
their choices. These retail-based concepts are the backbone of President Obama's standards for
health insurance marketplaces, unveiled in mid-July. Kathleen Sebelius, Secretary of the Department
of Health and Human Services, recently told the
New York Times that the centerpiece of the new law "[offers] Americans competition,
choice, and clout."
In order to attract patients in a competitive, consumer-driven market, providers are seeking
ways to improve the patient experience throughout the continuum of care. According to research
conducted by the Beryl Institute, patient experience is one of the top three priorities facing
hospital executives over the next three years, along with quality improvement and cost reduction.
Because the majority of hospital executives (73 percent, according to the Beryl Institute) do
not have a formal definition for patient experience, interventions to improve this have been
broad. Some organizations are using interactive technologies that bring a wide range of
services and control to the patient's fingertips inside hospital rooms. Others are offering
patients the ability to go online and/or use mobile devices to schedule same-day appointments,
communicate with providers, and receive medication and appointment reminders.
A crucial, untapped strategy for improving patient experience focuses on the tail end of
their encounters with the system, specifically at the time of payment. This is an important part of
the process, as billing issues directly impact customer satisfaction with hospitals. Evidence
suggests there is room for improvement. According to a recent Connance Consumer Impact Study of
more than 500 Americans, satisfaction with the hospital billing processes is low, with only 20
percent giving these processes a top mark. A McKinsey study explains that the number one reason for
low billing satisfaction and resulting non-payment is lack of financing options.
Offering patients flexible payment options such as monthly installments at little-to-no
interest has been proven to enhance the healthcare consumer's experience. In a survey
administered to over 2,000 of CarePayment's patients, 93% said that its financing program
maintained or improved the patient experience and 77% said that it positively influenced their
choice of hospital. Lending consumers a helping hand in a difficult economic climate increases
overall patient satisfaction, loyalty, and ultimately, market share. It can also significantly
increase net collections, which can immediately be reflected on income statements with an improved
bottom line.
Regardless of healthcare reform outcomes, it is clear that healthcare consumerism and the
expectations that come with it are here to stay. Innovative approaches to improving the healthcare
consumer experience while controlling costs, such as offering flexible payment plans for medical
bills, will be necessary for providers' success in an increasingly competitive marketplace.
Jim Quist is Chairman and CEO of CarePayment, an innovative patient financing and affinity
company that partners with hospitals and health systems to provide flexible payment options to
patients for their out-of-pocket expenses.
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