Delivering Financial PEACE OF MINDfor Healthcare Providers and Patients
by CSI Financial Services Tackling the Growing Self-Pay Problem For most hospitals, their mission is clear: to provide superior healthcare services to the communities they serve. However, in recent years, a perfect storm has gathered strength and threatens the nation’s healthcare industry. Consider the following statistics: 72% of hospitals report reduced operating margins; 50% of hospitals report reduced nonoperating income; and 44% of hospitals report reduced access to capital —American Hospital Association 64% of hospitals experience an increase in self-pay balances AFTER insurance of at least 10%—HFMA Financial Pulse Project 87% of hospitals reported an increase in bad debt or charity care as a percent of total gross revenue—American Hospital Association 75% of healthcare facilities report greater increases to bad debt now than from the 2001 recession—TransUnion Survey According to the McKinsey Research Group, the national average for uncollected self-pay each year is 49.3%. Moreover, patient self-pay receivables have more than tripled since 2001 and are now between 10% and 20% of expected hospital cash ﬂow streams. Industry research also indicates that even the best paying patients require an average of 3.3 statements before they pay their bill, stretching a hospital’s time to collect to over 100 days. HFMA estimates that the average cost to send a single statement is $10.Looking for Answers to the Self-Pay Challenge Healthcare ﬁnance executives are employing a number of new revenue cycle strategies, including the implementation of patient-friendly loan programs to extract value from a signiﬁcantly undervalued asset: self-pay balances. Introducing the ClearBalance Solution.
ClearBalance: A Track Record of Delivering Value ClearBalance, by CSI Financial Services, is led by a team of senior executives who have more than 75 years of experience working in the healthcare and ﬁnance industries. The ClearBalance team understands the challenges facing its clients—particularly the ongoing struggle of managing the day-to-day business operations of a healthcare institution. ClearBalance is the healthcare industry leader in providing zero- and low-interest bank loans to patients withHere’s what our program participants extremely affordable monthly payments. In fact, since 1992are saying about ClearBalance: ClearBalance has provided bank loans to more than 500,000 patients nationwide with a 99% patient satisfaction rate!“I wish to thank you for your assistance. If Featuring easy qualiﬁcation criteria and no writtenthe need arises again, would it be possible application requirement, the ClearBalance programto request your staff to handle (hospital assures that patients will quickly and easily qualify for theissues) on my behalf?” bank loan program. In addition, there are no prepayment —Roger from Indianapolis, Indiana penalties, origination fees or annual fees—further ensuring patient satisfaction.“I get such wonderful service every time I ClearBalance offers healthcare providers tangible,call. I love to call in just to get help!” measurable beneﬁts: —Nancy from Arlington, Texas Accelerating cash from self-pay receivables“Thank you sooo much! The cancer really Reducing A/R daysscared me, but I thought the bills would Preventing patients from going to collectionskill me. You’re a lifesaver!” —Terri from Marion, Indiana Reducing bad debt by 20% or more Eliminating the administrative headache of trying to collect self-pay balances Improving patient relations and satisfaction With ClearBalance, healthcare providers can choose the loan program that best ﬁts their mission, ﬁnancial objectives and the needs of their patients. Loans may be offered at any point or at multiple points in the revenue cycle—admissions, patient ﬁnancial services or in an automated fashion at a speciﬁc time in the revenue cycle. ClearBalance: delivering peace of mind to patients and healthcare providers.
ClearBalance: The Financial Curefor Healthcare Providers and PatientsAs healthcare providers look for solutions to self-pay issues,consumers are also struggling to balance healthcare costsand out-of-pocket expenses including high deductibles andcopayments. ClearBalance has funded more than half abillion dollars in patient loans, enabling hundreds ofthousands of patients to easily and affordably repay theirhealthcare obligations. Healthcare costs for a typical family of four increased 7.2% from 2009 to an all-time high of $18,074—Milliman Medical Index (MMI) Employees contribute, on average, $5,300 a year for family insurance coverage and $1,350 for individual coverage—United Beneﬁt Advisors Financial experts believe that the recently enacted CARD Act of 2009 will make it more difﬁcult and costly for consumers to gain access to credit that might have been used to pay their healthcare obligationsThe ClearBalance mission is to provide patient-friendly bankloans that enable consumers to easily manage their out-of-pocket medical expenses, while providing healthcareproviders a solution to help balance their revenue cycle.ClearBalance’s customer service center, locatedin its San Diego–based corporate headquarters,provides its clients and their patients with best-in-class servicing . . . all designed to help patientsmeet their self-pay obligation and avoid goingthrough the collections process.
ClearBalance: Programs toBeneﬁt Healthcare Providers and PatientsZERO-INTEREST FLEX Program EZ-FLEX ProgramPatients pay no interest over an extended period Complement current revenue cycleof time, dependent on the patient’s ﬁnancial needs processes by offering an attractiveand account balance. The healthcare provider alternative to patients who cannot payhas the ﬂexibility to offer each patient a monthly their balance in one lump sum. Patientspayment he or she can afford. This is a critical receive a revolving line of credit with a lowpart of reducing default, keeping patients out of interest rate and affordable monthly paymentscollections and improving patient satisfaction. The as low as $20 per month (depending on balancehealthcare provider is funded upfront for patient size). The healthcare provider is funded upfrontaccount balances, and ClearBalance manages ALL for patient account balances, and ClearBalanceaspects of customer servicing. manages ALL aspects of customer servicing.Patient Beneﬁts: Patient Beneﬁts: Patient pays no interest or late fees Affordable monthly payments Affordable monthly payments No prepayment penalties or punitive interest rates Consolidated statements for all amounts due to the healthcare provider with the Resolve balance over time without ability to add on obligations incurred at being sent to collections the healthcare facility Combine multiple accounts into one bill Resolve balance over time without being sent to collections Provider Beneﬁts:Provider Beneﬁts: Healthcare provider determines program’s interest rate Allows ﬂexibility to match monthly payment to amount patient is willing and able to pay Increase cash collections Reduce A/R days and bad debt Reduce A/R days and bad debt Increase cash ﬂow Expand payment options for patients Statements are sent to patients in the bank’s Statements sent to patients in bank’s name to further reduce default name reduces default Improve patient relations
For Financial Peace of Mind,Turn to ClearBalance by CSI Financial ServicesClearBalance provides valuable ﬁnancial resources to healthcare providersby offering bank loans to help patients repay their self-pay balances and thenservices its customers with respect and dignity.For additional information, contact us:ClearBalance by CSI Financial Services3636 Nobel Drive, Suite 250San Diego, CA 92122P: 858.200.9208F: 858.200.9210www.clearbalance.org