Podcast Excerpt

This Deep Dive focuses on Pre-Service Collection (PSC), a proactive strategy addressing the massive problem of uncollected medical debt, where the chance of payment plummets from 70% before or at the time of service to just 30% after discharge. PSC aims to close this 40-point gap by shifting financial discussions to before the service, primarily through patient friendly outreach for clear cost estimates and offering flexible payment solutions like payment plans. Counterintuitively, this upfront clarity and transparency lead to an enhanced patient experience and high satisfaction—the source quotes a remarkable 97% patient satisfaction rating—by reducing anxiety and eliminating surprise bills. For hospitals, PSC is a strategic win, significantly improving cash flow by decreasing AR days and lowering write-offs, while providing patients with vital financial counseling and predictability.

Main Points Summary

  • High Collection Drop-off Drives the Need for PSC. Healthcare providers have a 70% chance of collecting payment before or at the point of service, but this dramatically drops to just 30% after the patient is discharged. This massive 40-point gap causes significant cash flow issues for hospitals and leads to substantial bad debt.
  • Pre-Service Collection (PSC) is a Proactive, Three-Part Strategy. PSC is a proactive approach focused on discussing a patient’s costs before the service to increase upfront payments and reduce bad debt. The core process involves patient friendly outreach for cost clarity, offering flexible payment solutions (including payment plans), and ensuring seamless integration with hospital EHR and billing systems.
  • Pre-Service Collection (PSC) is a Proactive, Three-Part Strategy. PSC is a proactive approach focused on discussing a patient’s costs before the service to increase upfront payments and reduce bad debt. The core process involves patient friendly outreach for cost clarity, offering flexible payment solutions (including payment plans), and ensuring seamless integration with hospital EHR and billing systems.
  • PSC Creates a Win-Win for Both Patients and Hospitals. For patients, the key benefits are the elimination of bill surprises via clear cost estimates, more flexible payment options, and better financial counseling. For hospitals, PSC significantly increases upfront revenue, reduces Accounts Receivable (AR) days, and decreases bad debt/write-offs, supporting overall financial performance and compliance.
  • PSC is Part of a Holistic Revenue Cycle Management. Pre-service collection is a foundational piece within a larger suite of services that cover the entire financial lifecycle, ensuring hospital financial stability. Other services include denial and appeals management, early out self-pay assistance, and bad debt resolution.
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This podcast details how Sherloq Solutions, a 109-year-old medical debt collection agency, resolves the paradox of effective financial recovery and patient goodwill, boasting a remarkable 97% positive patient satisfaction rating validated by over 500,000 completed post-call surveys.