Geisinger gives patients the ability to pay medical bills by viewing their personal expenses.
This week, the Danville, PA-based system unveiled a billing solution that allows patients to customize their payment plans. Patients with a cash balance of more than $ 250 after insurance can choose individual payment plans offered with no commissions or interest.
“Everything we do at Geisinger is done to improve the health of our patients, members and communities. This includes simplifying the cost of paying medical bills and paying interest-free plans on friendly, customizable terms, ”said Robert Dewar. , director of revenue for Geisinger in a statement released. “We understand that everyone’s financial situation is different and we have a responsibility to ensure that our patients do not avoid or delay providing needed care for financial reasons.”
The PayZen startup provided the Geisinger platform. According to PayZen CEO and co-founder Itsik Cohen, the pilot was deployed last fall in one of Geisinger’s service regions before eventually becoming system-wide.
Patients who were offered payment plans during the pilot paid an average of $ 52 per month. Of those who offered the program, 82% of them enrolled.
“Medical payments are dramatically shifting to the patient,” Cohen said. “We looked at this market and felt that the health sector needed a buy now, pay later approach.”
The AI-powered algorithm analyzes over 30,000 patient financial data to determine how much they can pay on a monthly basis. Patients can now complete payments in 60 months instead of the traditional 12 to 18 months.
This information is combined with provider data to adjust payments based on the likelihood that patients will need additional treatment in the future, Cohen said.
“If we see that this is the beginning of a number of other procedures that you are going to perform, we will leave you the financial opportunity to pay for additional procedures in the future,” he added.
AI-powered algorithms have enabled the creation of patient billing solutions. But Geisinger is the first major healthcare system in the country to use fintech extensively to tackle the growing problem of unpaid patient debts.
According to a July study published in the newspaper Journal of the American Medical Association… The study estimated that $ 140 billion in unpaid medical bills were kept with collection agencies.
This increase was mainly due to the fact that health insurers shifted most of the cost of medical expenses to patients in the form of co-payments and higher deductibles.