This document discusses using psychographic segmentation to enhance revenue collection from patients. It begins by outlining how patient financial responsibility is increasing and how patients prefer more digital payment options. It then describes five common psychographic patient segments - Self Achievers, Balance Seekers, Priority Jugglers, Direction Takers, and Willful Endurers - and how their characteristics relate to likelihood of paying bills and preferred payment methods. The rest of the document discusses how a digital platform can implement psychographic segmentation to personalize patient financial communications and improve collections rates.

1. Psychographic Segmentation: Using Consumer Industry
Methods to Enhance Revenue and Patient Collections
Brent Walker, SVP Marketing & Analytics
Mike Schiller, SVP Sales

2. 2
Psychographic Segmentation – The Foundation
https://www.patientbond.com/patient-classifier

3. 3
Patient Responsibility – The Changing Landscape
Patient Balances Are and Increasing Portion of Healthcare Provider Revenue
• Patient Out-Of-Pocket Healthcare Costs – Increased 30% since 2015
• 2016 – 68% Failed to pay of Medical Balances
• 2020 – Estimated 95% will fail to pay Medical Balances
• 2018 - > 30% of the average healthcare bill comes from the patient pocket!
• It costs 4x more to collect from a patient than an insurance company

4. 4
Patient Responsibility – Have We Changed?
How Patients Feel About Paying Their Balances
• 70% of Patients are frustrated with the self pay billing process
• 65% of Patients would consider switching providers if payment experience was
easier AND more convenient!
• 79% of Patients STILL receive a paper bill
• 80% of Patients would prefer to pay their bill via their own secure mobile device
Thank you for
visiting Priority
Medical on 7/10.
We have
submitted your
claim to insurance.
Please call us with
any questions @
312-445-8750.
Reply X to opt out.

5. 5
Patient Responsibility
Increasing every year
(>30%)
Aggressiveness of
Collection Effort
Balance
Patient
Satisfaction and
Loyalty
PFR – The Dilemma Facing Healthcare Providers
Providers need to meet
the Healthcare
Consumer how THEY
prefer, when they want
and how they want
with options and
convenience aligned to
what motivates them
in order for them to
act.
Hint: It is not a paper
statement!

6. 6
WHAT’S THE PROBLEM?
WHILE HEALTHCARE CONSUMERS AND PROVIDERS SEE VALUE,
PATIENT ENGAGEMENT TECHNOLOGY SIMPLY ISN’T VERY ENGAGING
D E L I V E R Y
“One channel fits all”
doesn’t engage or activate
C O N T E N T
“One message fits all”
approach doesn’t resonate
“Digital Health is not a computer
science or an engineering science. It
is a … behavioral science.
Creating the tech isn’t the hard
part. The hard part is using the tech
to change patient behavior”.
Dr. Brennan Spiegel
Cedars-Sinai Medical Center
Fortune – April, 2018
R E S I S TA N C E
Lack of compelling content and
delivery causes patients to ignore
or procrastinate
U N D E R P E R F O R M A N C E
Patient outcomes and practice
operations miss expectations

7. 7
INFLUENCING BEHAVIOR WITH DIGITAL RELATIONSHIPS
CLOUD MANAGED SERVICES PLATFORM FOR HEALTHCARE CONSUMER ENGAGEMENT
U N D E R S TA N D G R O W M A R K E T
S H A R E
I M P R O V E PAT I E N T
C O L L E C T I O N S
O P T I M I Z E C A R E
Self Achievers
Balance Seekers
Willful Endurers
Direction Takers
Priority Jugglers
DELIVER FIVE VARIATIONS OF THE
SAME CORE MESSAGE BY CHANNEL
ANALYZE PATIENT RESPONSES AND
DETERMINE NEXT ENGAGEMENT
CLASSIFY INTO FIVE DISTINCT
PYSCHOGRAPHIC SEGMENTS
OK OK
Alert care
team
Send next
email in 2 days
+ text in 5 days
OK
October Campaign
Two way SMS Texts
Email Messaging
Phone with IVR/Live Transfer
Smartphone Apps
Third Party Web Portals
Print Server for Mailings
C o n s u m e r
I n s i g h t s
E N G A G E
D i g i t a l
O u t r e a c h
A D J U S T
N e x t B e s t
A c t i o n

8. 8
Psychographics and The Healthcare Consumer

9. 9
Healthcare Consumer Segmentation
SURFACE
DEEP
I
N
S
I
G
H
T
S
Behavioral
Values Attitudes Interests Motivations
Buying habits Website Visits Search History
Age Race Income Gender
Psychographics
Demographics
*Advantages – More effective in resonating with a consumer’s
motivations and unarticulated needs

10. 10
PSYCHOGRAPHIC
SEGMENTATION
APPLYING A CONSUMER MARKETING APPROACH
TO HEALTHCARE SERVICES AND COLLECTIONS
• Attitudes, values, lifestyles and personalities and are the key
to understanding healthcare consumers’ motivations.
• Segmenting people by these characteristics allows you to
target and deliver communications that resonate more
effectively and increase the likelihood of behavior change.

11. 11
15 minutes could
save you 15% or
more on insurance!
Segmentation In Action

12. The Five
PatientBond
Psychographic
Segments

13. 13
EXT ENSI V E RESEARCH OUTCOME : ONE SI ZE F I TS ONE
PATIENTBOND COMBINES PROPRIETARY BEHAVIORAL SCIENCE WITH
MULTI-CHANNEL COMMUNICATIONS TO AMPLIFY DIGITAL RELATIONSHIPS
PRIORITY JUGGLERS
Busy with things other than health
Reactive to personal health
Proactive with family health
DIRECTION TAKERS
Deeply trust healthcare providers
Visit doctor at first sign of issue
May not follow advice due to other
responsibilities
SELF ACHIEVERS
Proactive, driven by appearance
Treatment and screening diligence
Task oriented, challenge driven
18%19%
15%
WILLFUL ENDURERS
Live in the here and now
Do what they like, when they like
Self-reliant and resilient
Only visit doctor when necessary
31%
BALANCE SEEKERS
Proactive and wellness-oriented
Open to ideas and options
Self-defined success
Providers are resources
17%

14. 14
14
Self Achievers
• The most proactive when it comes to their
wellness, investing what is necessary toward their
health and appearance
• Task oriented, and will tackle a challenge if they are
given measurable goals

15. 15
15
Balance Seekers
• Generally proactive in their health and are wellness-
oriented
• Open to many ideas, sources of information, and
treatment options when it comes to their healthcare
• Physicians are just one of many sources of healthcare
information

16. 16
16
Priority Jugglers
• Very busy with many responsibilities
• May not take the time to invest in their own
wellbeing
• However, very proactive when it comes to
their family’s health

17. 17
17
Direction Takers
• Believe their physician is the most credible resource
• Look to healthcare professionals for direction and
guidance because of their expertise and credentials

18. 18
18
Willful Endurers
• Live in the “here and now”
• Self-reliant; go to the doctor only when they
must
• Focuses on the first/next step

19. 19
LIKELIHOOD to Pay Medical Bills
If facing financial hardship, how likely would you pay your bills on time for the following healthcare providers
Self Achievers and Priority Jugglers are the likeliest segments to pay their medical bills
Willful Endurers and Balance Seekers are the least likely to pay their medical bills (however, Balance Seekers are
generally healthy and do not utilize the healthcare system frequently)

20. 20
ATTITUDES Around Paying Medical Bills
Why the segments are likely (or unlikely) to pay their medical bills
Willful Endurers are the most likely to believe that financial hardships challenge their ability to pay their
medical bills
HOWEVER: There is no statistical difference among the segments in annual household income below $80K
(median U.S. household income is $59K)
This is a matter of priorities and choices and the ability to motivate positive health (and payment) behaviors

21. 21
Preferred Method of Balance Due Notification – Our Data
PatientBond knows, and can execute, the right segment-specific messaging and channel mix to make each
segment aware of Balances Due…

22. 22
Paying Healthcare Bills – Preferred Method – Our Data
Preferred Method for Making an Out-of-Pocket Payment for a Balance Due
Self
Achievers
a
Balance
Seekers
b
Priority
Jugglers
c
Direction
Takers
d
Willful
Endurers
e
Online payment via credit card (Digital) 44% 45% 44% 40%
Online payment via Paypal 8%
6%
c
3% 5%
Online payment via HAS (Health Savings Account) card 7%
8%
d
6% 5%
Payment by phone (call provider with payment information) 5% 4% 4% 4%
Payment by smartphone app (fill out form on phone with payment
information)
1% > > >
Mail in payment (e.g., U.S. Postal Service) 18%
17%
e
22%
be
22%
be
Pay in person at the provider’s facility 13% 15% 15% 15%
Other 1%
2%
a
2%
3%
ae
None of these 3% 3% 3%
6%
ab
… AND PatientBond knows each segment’s preferred Method of Payment and can steer them there to
maximize the likelihood of paying Balances Due

23. 23
Self Achievers
19%
Achieve the Goal; Improvement
Balance Seekers
17%
Choices, Options; Knowledge; Context
Priority Jugglers
18%
How the Family/Others Benefit; Commitment, Duty
Direction Takers
15%
Expert, Credentialed Physician Says So
Willful Endurers
31%
Here & Now; Live For Today; First Step
23
Every Segment Has a Different Engagement Strategy

24. 24
“We are looking at
healthcare choices through
the eyes of the healthcare
consumer NOT how we
think the consumer sees
healthcare choices!”
How Patients View Things

25. 25
COMMUNICATIONS PREFERENCES BY SEGMENT
PFR MARKETING SURVEYSCLINICAL
Balance Seeker
Every month Every 2 months Every 2 monthsEvery month
Willful Endurer
Every 3 weeks Every 3 weeks Every 3 weeks Every 2 weeks
Priority Juggler
Every month Every 2 months Every 2 monthsEvery month
Self Achiever
Every 2 weeks Every 2 weeks Every 2 weeks Every 2 weeks
Direction Taker
Every month Every 2 months Every 3 weeks Every 2 months

26. A Digital Patient Financial
Responsibility (PFR)
Solution – How To Do It!

27. 27
A Psychographic Segmented PFR Platform
41%
20%
19%
10% 10%
• Client Satisfaction - Patients Prefer It!
• Cost Avoidance
• Labor – Outbound Collection Effort
• Paper – Statement Volume and Collection Letters
• Collection Agency Fees (Small Balance example)
• Utilize text, IVR, and email channels (By Segment) to facilitate faster payments
• Drive traffic to your online bill pay portal
• Reduce Average Days Outstanding (DSO) for patient responsibility bills
• Reserve recovery – EBITDA improvement

28. 28
SEGMENTED MESSAGE PFR DIGITAL WORKFLOW OPTIONS
Interventions in the PFR Revenue Cycle
• Billing Process – Education and
Payment options (70% Confused)
• PFR Notification of Balance Due and
will be sent via (text, email or
statement)
Pre-Statement
• Statement sent (If Provider chooses)
• Text, email or statement sent
• Thank You - Payment received
notification
• 2nd reminder if no payment received
• 3rd, 4th or 5th reminder if no payment
received – Different channels
• Opt out and notification
• Small Balances - Digital
0 – 90 Days (Early Out)
+ Suppressed statements and small
balances
+ Payment Plan options by segment
+ Pre-Collections notification
90+ Days and Bad Debt
Patient Financial Responsibility (PFR) Revenue Cycle
Prior To Statement Single Statement No Statement

29. 29
Regulatory Compliance
41%
20%
19%
10% 10%
The Telephone Consumer Protection Act (TCPA) regulates telemarketing calls, auto-dialed
calls, pre-recorded calls, text messages, and unsolicited faxes. The TCPA primarily applies
to telemarketing calls. The following messages (among others) are excluded (these types
of communications are allowed under TCPA).
• Debt collection calls by a creditor, the consumer has given the cell phone number to creditor for
use in normal business communications
• Health Care messages made by, or on behalf of, a “covered entity” or its “business associate,” as
those terms are defined in the HIPAA Privacy Rule
*PatientBond always provides Opt-Out capabilities
Best Practice: use an Opt-In
I understand that Priority Medical may contact me by telephone (including mobile phone), and its affiliates or agents may use
pre-recorded/artificial voice messages, an automated telephone dialing system, text messages or email for any
communication related to my account(s). I understand and acknowledge that such communication methods may not be
secure.

30. 30
How Do You Segment a Healthcare Consumer?
Classifier – 91.1% Pre-Segmentation
Psychgraphic Segment Client
Nat
Average Variance
1 -Self Achiever 17.18% 18.40% -1.22%
2 -BalanceSeeker 13.86% 17.39% -3.53%
3 -Direction Taker 14.13% 15.42% -1.29%
4 -Priority Juggler 20.99% 17.41% 3.58%
5 -Willful Endurer 33.84% 31.32% 2.52%

31. 31
How it Works?

32. 32
Early Out Workflows – Education and Status
41%
20%
19%
10% 10%
Day 0-30: Charge is submitted to insurance
Thank you for visiting
Priority Medical on 7/10.
We have submitted your
claim to insurance.
Please call us with any
questions @ 312-445-
8750. Reply X to opt
out.
* The goal of Early Out Workflow is to work with the current
process that is being used and to inject digital messages into
the workflow. Ultimately, this will allow the customer to
decide whether 2nd or 3rd statements and collection letters
are needed or not. PatientBond recommends doing both
and within 60 days of live date to determine steps on
statement suppression.

33. 33
Pre or Initial Statement Messaging
41%
20%
19%
10% 10%
Msg from Priority
Medical- We received
your insurance payment
for your 8/5 visit. Your
remaining balance of $45
is now ready for payment.
Click here to pay online or
call 312-445-8750 to pay
by phone. Your acct# is
4321. Thank you. Reply X
to opt out.
Day 9-23: Claim is paid, PFR is established
• Message sharing with the patient that his/her
statement is processed and ready for payment.
Frequency or channel varies based on patient segment.
• Facilitate quicker payments and keep patients out of
the statement cycle
Easy to do now! Msg from
Priority Medical-Your
insurance has paid and the
payment for Mike’s visit on
8/5 for $45 is due. Please go
to ppay.url or call us @ 312-
445-8750 to make the
payment. Your account # is
65432. Thanks for your
prompt attention! Reply X to
opt out this campaign.
Willful Endurer

34. 34
Payment Options – Segmented Email
+ 2nd Notice (Text first)
+ Worries about effect of healthcare
bills on their finances
+ Optional – Offer payment
alternatives 5 days after 1st notice
to this segment earlier based on
consumer insights
+ Prefers online bill payment and
doesn’t need detail
Willful EndurerDear first name last name,
You want to make every day the best day possible, and we thank you for choosing
Organization Name to help make this happen!
We have billed your insurance for your last office visit, and according to your financial plan,
your portion of the balance is now due. As a service to you, we have several ways for you to
make this payment. Please click on the link that is best for you:
• Client Name payment portal
• Patient portal for eStatement and balance detail
• If you have any questions related to you bills or to make a payment, please contact our
billing office at organization phone.
Thank you for addressing this immediately and letting us strive to earn your trust
Sincerely,
Organization Name
This email was sent from a notification-only address. PLEASE DO NOT REPLY TO THIS EMAIL.
(NOTE-Add standard Opt Out Language)

35. 35
Sample (Non Segmented) Past Due Workflows
41%
20%
19%
10% 10%
Day 30: Patient is now past due
Courtesy reminder from
Priority Medical that the
payment for your visit on
6/10 for $45 is now 30
days past due. Click here
to pay online or call 312-
445-8750 to pay by phone.
Your acct # is 4321. Thanks
for your prompt attention!
Reply X to opt out.
Day 60
Reminder from Priority
Medical that the payment
for your visit on 5/10 for
$45 is now 60 days past
due. We understand you
may be busy, so you can
easily click here to pay
online or call 312-445-
8750 to pay by phone.
Your acct # is 4321. Reply
X to opt out.
Day 90
Your payment of $45 for
the 4/10 visit to Priority
Medical is now more than
90 days past due. It is
urgent that you call us @
312-445-8750 or go to
ppay.url to make the full
payment to protect your
credit rating. Your account
# is 4321. Reply X to opt
out.

36. 36
Bad Debt, Small Balances and Suppressed Statement Workflows
41%
20%
19%
10% 10%
• Digitally reach out to those patients that have
balances that have been written off or statements
are being suppressed due to small balances.
• PatientBond recommends, for bad debt, that the
customer identify balances for patients that have
a balance due and have not been to a client
facility in a determined period of time (for
example; the last 6 months).
Msg from Priority
Medical- You have an
outstanding balance of
$45 from your 10/15/18
visit. Click here to pay
online or call 312-445-
8750 with any questions
or to pay by phone. Your
acct# is 4321. Thank you.
Reply X to opt out.

37. Results and
Economics

38. 38
RESULTS
LEARN MORE
By month 2 (60
Days) of
deployment
5x ROI
Reduction in
Statement Volume
24%
Increase in patient
payments within 10
days of ”Go Live”
4x
Increase in patients
making payments from
Baseline
60.9%
Increase in amount of
payments paid via
portal
49.5%
Increase Bad Debt
Balances Collected
14-25%

39. 39
RESULTS
LEARN MORE
50 Location Client (10,000+ Patients)
Statements Suppressed 5 days (By Design)
Pre Statement Messaging – PatientBond Digital Workflow
24% Paid PRIOR to Statement Run Within 5 Days of PFR Transfer Date
Estimated 22% Statement Cost Reduction

40. Q & A

41. 41
THANK YOU
Mike Schiller
Senior Vice President
mike.schiller@patientbond.com
(303) 453-9484
Brent Walker
SVP Marketing & Analytics
brent@patientbond.com
(513) 314-5981