High Health Care Costs & Pricing Transparency

near future. An article in the Huffington Post Business Section cited exponential increases that took place in 2011, contributing to the need to mend this deficit. With health insurance companies and Medicare paying 5.8% more for healthcare services over the past year and private insurance costs rising 7.7%, it is clear that a solution is necessary.

Pricing discrepancies on healthcare costs are completely dependent on what hospitals and providers charge, which points a finger at who is responsible for the convoluted pricing structures for care.  Patients across the country are begging for price transparency and ways to save money on their own medical costs, due to the immense amount of growth we have seen in uninsured Americans. 

                                        

Medical industry professionals aim to reduce costs as well, in hopes of cutting health care spending, as the United States spent $2.6 Trillion in 2010, which is ten times more than what was spent in 1980.  Medicare and Medicaid have implemented reimbursement cuts in order to reduce spending, however it has only pushed health care providers to raise their prices for private insurance plans and placing more fiscal responsibility on the patient’s shoulders.  This has led a large portion of American families, employers and employees to adopt the self-paying patient system, which forces the patient to shop smarter for affordable services.  The unfortunate backlash of this, is that unemployment and a downturned economy has led many of these patients in need to forgo treatment they need in favor of saving money.  Even those with employer-paid health insurance have seen increased costs.

Future plans aim to control these skyrocketing costs, however it is as imperative as ever for patients and families to take matters into their own hands, as to avoid getting lost in the intricate pricing system.  It was also recently reported that a quarter of adults (26%) experienced gaps in coverage during 2011, leaving them without insurance and monstrous costs to be responsible for, if care was needed. However, through patient education and an open dialogue with physicians, in addition to a little price shopping research to find affordable options, patients can receive the quality care they deserve, no matter their situation.

Atlantic Healthcare Changes & Industry Growth

After over a decade of growth and success, Atlantic Health Solutions has outgrown ourselves and we are moving on to bigger and better things. Next week we will be opening the doors of our new offices in Tampa, Florida, where the backbone of our company will now all be under one roof.  Atlantic Health Solutions started with one computer, one cell phone, one fax machine and one person in 2001, and has transformed into a fully functioning and reputable medical billing and coding, marketing and operational firm with a strong family atmosphere.

Atlantic’s CEO Chris Christenberry’s vision for his company was a bright one but as one might guess, Atlantic has undergone a series of tremendous changes since its conception.  Overcoming industry turmoil and challenges, we have gained a number of new team members that have added depth, experience and innovation to the company, allowing us to hold destiny in our own hands.

The company you see today was only a mirage to Chris in 2001 and unexpected shifts in industry standards and business techniques have instilled in Atlantic, a more unique and innovative company culture.  Chris borrows a quote from one of his favorite business blogger and author, Seth Godin, saying, “During times of change, the only organizations that thrive are those that are eager to interact and change as well.  And that only happens when individuals take brave steps forward.”

As we take this step into the future, we are excited to see what is next for Atlantic Health Solutions.  New initiatives and capabilities allow us to confidently conquer new frontiers in healthcare marketing. New partnerships with radiology facilities from Wall Street in Manhattan to Main Street in Leesburg challenge us to improve daily.  Finely tuned techniques for revenue cycle management reiterate our success in medical billing and coding.  Not even a fortuneteller could guess what is next for Atlantic Health Solutions.

Our Facilities:

Advanced Imaging Centers (FL)

-       Leesburg

-       Clermont

-       The Villages

Compass Imaging (MS)

-       Gulfport

-       D’Iberville

Central Nebraska Imaging

Clovis Open MRI (NM)

Northeast Nebraska Imaging

Open MRI of Pueblo (CO)

Open MRI of Santa Fe

Open MRI of Santa Fe (NM)

Omaha Imaging (NE)

Rosetta (NYC)

Radiologists Use Healthcare Marketing to Combat Industry Challenges

In the same way that the consumer industry turns to marketing and public relations to combat industry challenges and vie with competition for consumer spotlight, the healthcare industry uses marketing to attract new patients.  Healthcare reform and tendencies towards healthcare transparency in addition to Medicare changes in regards to reimbursement have created a unique challenge for providers, but have influenced radiologists in more ways than one. Of course, providers can’t compete like Macs and PCs can, but think of independent radiologists as a Mac with more personalized settings, creative and unique methods and less stress.

The issues radiologists face on a daily basis include overutilization for services as a result of other specialists taking advantage of self-referral capabilities, decreased reimbursement from Medicare and the commoditization of diagnostic imaging due to vast pricing disparities’ and the misconception that patients cannot afford quality care.  These challenges of course have led to decreased confidence among radiologists and desperate attempts to stay afloat.  Some in the industry believe that the only solution is to join an Accountable Care Organization or to be bought out by a hospital, succumbing to the pressures of change without any effort to transform the way they do business.  Through a series of solutions to improve performance, manage change and find success, efforts can be made to bring practices into the future of healthcare by being proactive and positioning themselves for success.

The issue of over-utilization in reference to diagnostic imaging procedures in our country would be eliminated if self-referral patterns were less prominent.  The solution is for radiologists to focus on marketing the strengths of patients going to independent outpatient imaging facilities over other options that are unable to focus on just radiology. These strengths are accreditations, on-site radiologists, more intricate and specialized capabilities, personalized service and affordable pricing for patients.  Through physician outreach and networking with specialists and general care providers, radiologists can also show referring physicians the multitude of benefits of working together.  Incorporating a marketing professional who aims to build referral relations and new patient volume can also help rebrand the outlook of your whole practice.

No practice can truly combat decreased reimbursement, but they can take steps to make sure that there are as few mistakes as possible and expedite the collections process.  By having a well-equipped billing and coding department, practices can capitalize on time and money spent.  By maintaining control by recruiting the help of professionals, your practice can focus on the important aspects of care.

Radiologists, all healthcare providers in fact, are in the industry to provide care to those in need, which is why the commoditization of care is every provider’s worst nightmare.  The solution is price transparency in healthcare.  By being a resource to patients and providing them with facts on their procedures and giving clear invoices and pricing up front will show patients that they can in fact receive the care they need at costs they can afford.  Of course, transparency will only be affective when melded with proof of quality, so if all providers hold their practices to a standard of excellence, patients will be able to truly see the disparities in the healthcare pricing industry.  Creating strategies to capitalize on this price-sensitive patient market is crucial to staying afloat in the tragic healthcare economy we find ourselves in.

Marketing Quality Care to Patients

In light of a recent trip to Ft. Lauderdale for the RBMA’s Building Better Radiology Marketing Programs event, we have been thinking a lot about the best ways to market to patients.  In the healthcare industry, consumerism is on the rise, but coming up with creative and innovative ways to market your product is much harder with intangibles like care.  Of course positioning a shiny new toy or new techie product is going to be easier to sell since your can turn even an unwilling buyer into a customer in a 30 second commercial, however with the right campaign for care, you can gain adopters for a lifetime.

 

The challenges that healthcare marketing professionals face are difficult, but easily combated if approached appropriately. Healthcare tends to make patients think negatively, as considering health services and procedures forces them to ponder flaws, pain, life and death. All of which are simply emotions that are not evoked when someone is trying to decide between the red iPhone case and the blue iPhone case. 

The ticket is balancing the emotional with the rational and adding a twist of creativity that engages the patient and makes them remember you.  Think about State Farm for instance. They are selling insurance. Nothing brings about negative thoughts more than losing everything when you have an accident, but their marketing campaigns have a special recipe for entertaining you while still having confidence in their services.

Both videos are selling the same product but by playing on two very different facets of human emotion, they both succeed and are memorable. This balance is just as easily attainable in the healthcare field.  The key is to think like a patient. This might seem like a simple solution, but by considering the care process your practice can easily determine strengths and examine what truly matters to patients. Ask the questions the patients are asking of your own practice.

-       Do they take my insurance?

-       How much is this going to cost me out-of-pocket?

-       Is this really the best price?

-       Are they going to take care of me and answer my questions?

-       What if something goes wrong?

-       Is this going to be scary or hurt?

-       Is their technology up to date?

-       Am I getting the care I deserve?

The healthcare industry is not what it used to be thanks to the Internet and patients are turning towards self-education and empowerment. It is important to assure their concerns, provide resources to them and treat them like the power-holders that they are.  Making sure that your patients are taking advantage of educational materials while knowing about price shopping and quality measurement tools is an intangible value-added service.  Make sure that your patients are comparing apples to apples and are aware of price transparency and they will feel assured that you want the best for them. After all, the goal of healthcare marketing is to put their minds at ease by combating fears with comfort and quality.

Tags: pricing transparency, patient experience, save on medical, personalized service, price-shopping in health care, marketing, improved patient volume, RBMA, quality service, healthcare marketing, price shopping, price transparency

Why Your Practice Needs a Self-Pay Strategy

Trends towards price transparency in the healthcare industry have led practices to require new and innovative methods towards revenue management and marketing. The increasing rates of uninsured Americans and high-deductible health plans have pushed patients to start price shopping for affordable healthcare in the same way they shop for deals in other consumer industries.  The price shopping has built patient awareness of things like fee schedules and pricing variances, which makes the demand for pricing transparency more and more influential.

This of course benefits patients by arming them with the appropriate information needed to understand their healthcare.  Before, Patients didn’t know that the MRI procedure they received for $3,000 could have been found for $500 if they looked around for a better deal. More importantly however, the patient didn’t realize that the quality of the service at both facilities was not worth the difference in price.  Pricing transparency has revealed to many patients that often times, taking the self-pay route, is the most affordable way to get the care they need.

Practices are apprehensive of this mission for price transparency and self-pay patient empowerment due to fears of decreased revenue and poor return on investment after committing themselves to the new strategy. With high insurance costs and diminished reimbursements, imaging centers in particular, are looking for any way to stay afloat.  Sticking to the ways of always doing things is not the answer; a new strategy is the answer. A self-pay and pricing transparency strategy is the key.

Without a legitimate strategy geared towards the price sensitive patient market, practices are seeing:
- A missed market segment
- Lost revenue due to poor collections
- Lower patient volume because of commoditization
- Decreased authority in the industry
- Lost leverage

The last thing that the industry needs is for patients consider quality care to be a commodity, simply because they do not know where to find care they can actually afford.  These disparities have also led to a warped understanding of price versus value.  Patients are programmed to think that if something is more expensive, then it is better, but as we mentioned before, quality is not always reflective of pricing. 

By developing a truly manageable self-pay strategy, practices are able to be up to date in the industry, captivating new patients they would have never reached prior.  Virtual care is the next step on the horizon in healthcare, and the patient experience starts with picking a facility and scheduling an appointment, which is why Save On Medical aims to help each practice on their site put their best foot forward from the very beginning.  With the assistance of Save On Medical, practices are able to follow an effective strategy, measuring success and growth over time, learning from lost patients and growing with their new ones.