Blog | November 8, 2023

Connecting the Dots Between Hospital Revenue and Patient Experience

In the complex landscape of modern healthcare, two crucial elements stand at the intersection: hospital revenue and patient experience. As healthcare costs continue to rise, patients find themselves burdened with higher out-of-pocket expenses, often struggling to pay their medical bills. This financial strain not only jeopardizes patients’ well-being but also poses significant challenges for healthcare providers. Unpaid medical bills can lead to financial crises for patients and increased write-offs for hospitals, affecting their ability to provide quality care to the community. 

Addressing this challenge requires a nuanced approach that redefines the conventional definition of financial solutions. Unpaid medical bills often culminate in personal financial crises for patients and mounting losses for hospitals, directly impacting their capacity to deliver quality care to their communities. 

In response to this issue, hospital and health system leadership are challenged to meet the financial needs of their patients while maintaining a healthy bottom-line. Progressive financial services have emerged, offering a beacon of hope and stability for both patients and healthcare institutions – zero-interest patient financing.

The zero-interest model has proven to work. When a $1 billion health system implemented zero-interest payment plans with CarePayment, they increased cash on hand to $84 million and collected $33 million from accounts over 60 days old. The inflow of cash from the CarePayment program is credited to reducing overall hospital accounts receivable days and self-pay balances, vital measures of financial health.  

The philosophy behind this model is simple—removing barriers to care like applications, credit checks, and interest not only empowers patients to pay their bills, thereby increasing a hospital’s financial success, but also creates a loyal patient who will reliably return to this health system for their medical care. In fact, 84% of patients surveyed said that they would return to this specific hospital because of CarePayment, highlighting that an empowered patient is a loyal patient. 

In this context, the relationship between patient experience and hospital revenue gains new significance. By relieving financial strain, patients can focus on their recovery, enhancing their healthcare experience. This positive experience builds trust and loyalty between patients and healthcare providers, establishing a strong foundation for future interactions. 

Despite rising healthcare costs, the commitment to affordable, accessible, and compassionate healthcare remains steadfast. Integrating patient-first financial solutions such as zero-interest financing into the healthcare ecosystem empowers patients, supports healthcare providers, and creates a more equitable healthcare landscape. Embracing zero-interest patient financing, especially through inclusive and compassionate models like CarePayment, represents a transformative step toward patient-centered, financially inclusive healthcare.