PayJourney Includes the Option of Non-Recourse Loans to Increase Patient Payments

PayJourney™ is the healthcare industry’s first end-to-end concierge-service designed to improve the patient and provider financial experience – all while maximizing collection results. Frost-Arnett realizes that managing Accounts Receivable (AR) has become one of the most pressing challenges for providers. With the rise of high-deductible health plans, increased patient responsibility for medical bills, and the complex nature of insurance reimbursements, healthcare organizations are grappling with delayed payments and a growing patient debt burden. PayJourney™, the next generation of self-pay recovery, provides non-recourse patient financing coupled with an enhanced Early-Out as an option to greatly improve recovery of AR dollars.

What Are Non-Recourse Loans?

In healthcare AR collections, non-recourse loans provide a way for providers to finance their outstanding patient bills without the risk of further legal or financial consequences if the borrower defaults. These loans can help increase patient payments by addressing the financial gaps and barriers that often prevent patients from paying their medical bills in full or on time.

How Non-Recourse Loans Work in Healthcare AR Collections

In healthcare, non-recourse loans are often used in the following way:

1. Healthcare Provider Works with a Lender or Financing Partner: A healthcare provider enters into an agreement with a lender, often a specialized financial institution, to finance a portion of the outstanding AR. This allows the provider to access immediate cash flow while the lender takes on the responsibility of collecting the debt.
2. Patient Debt is Transferred or Financed: The lender purchases or finances the outstanding patient debt, effectively assuming the risk of non-payment. This can include balances that patients owe after insurance payments or for services not covered by insurance.
3. Debt Collection and Risk Management: The lender then handles the collections process. Since non-recourse loans are at a fixed risk to the lender, they employ their expertise in collections and often use more efficient strategies to recover payments. The healthcare provider is freed from having to pursue payment, allowing them to focus on care and operations.

Key Benefits of Non-Recourse Loans for Healthcare AR Collections

1. Reduced Financial Risk for Healthcare Providers One of the most significant advantages of non-recourse loans is that they transfer the financial risk associated with patient payments to the lender. By using non-recourse loans, providers can mitigate the risk of non-payment, ensuring they receive the funds they need without the burden of chasing unpaid debts.
2. Improved Cash Flow and Operational Efficiency Healthcare organizations operate in an environment where cash flow can fluctuate due to delayed payments and the complexities of insurance reimbursements. Non-recourse loans provide immediate cash to healthcare providers, which helps stabilize cash flow. With a predictable and steady stream of revenue, providers can continue to deliver quality care and meet their financial obligations without the stress of waiting for patient payments to come through.
3. Access to Professional Collections Expertise Collecting payments from patients can be challenging, especially when dealing with sensitive medical debt. Lenders who provide non-recourse loans often have extensive experience in the collections process. This expertise can lead to more effective collection strategies, improving the likelihood of recovering outstanding debts. Specialized collections agencies may use various techniques, including working with insurance providers, negotiating payment plans, and leveraging advanced technology, to recover debt more efficiently than the provider could on their own.
4. Enhanced Patient Experience The process of recovering patient debt can often be fraught with tension. Patients may feel overwhelmed by their medical bills, and healthcare providers may struggle with managing the delicate relationship between pursuing payment and maintaining a positive reputation. Non-recourse loans can help alleviate this by allowing the lender to handle collections in a professional and patient-friendly manner. This approach can reduce the stress on patients, ensuring that their experience with the healthcare provider remains positive, even when financial challenges arise.
5. Increased Payment Acceptance and Flexibility Non-recourse loans often come with more flexible payment options for patients. Since the loan provider takes on financial risk, they may be more willing to offer extended payment terms or work with patients to develop payment plans that suit their financial situation. This flexibility can increase the likelihood that patients will make payments, as they feel less burdened by an immediate, large lump-sum bill. With manageable payment options, patients are more likely to stay current with their bills, and providers are more likely to receive payment in full.
6. Protection Against Economic Fluctuations Healthcare providers face economic uncertainties that can impact their ability to collect payments from patients. For example, economic downturns, shifts in insurance plans, or changes in patient demographics may make it more difficult for patients to pay for their healthcare. Non-recourse loans act as a hedge against these uncertainties by ensuring that providers can continue to receive the funds they need to operate, regardless of changes in patient payment behavior or market conditions.
7. Improved Focus on Patient Care When AR collections are outsourced to a lender through a non-recourse loan, healthcare providers can focus more on delivering high-quality patient care. By removing the stress and burden of collections, organizations can streamline their operations and improve the patient experience. This focus on care, combined with the financial stability provided by non-recourse loans, allows providers to remain competitive and continue offering top-tier services.

PayJourney™ provides healthcare organizations with a powerful tool to improve their AR collections and manage patient payments more efficiently. By increasing patient communications and shifting the financial risk to lenders, providers can stabilize cash flow, improve operational efficiency, and enhance the patient experience. Account balances between $2,000.00 and $15,000 typically make up ~60% of AR dollars.  These higher balances are less like to be collected in a typical Early Out environment.  By adding the option of patient financing, PayJourney™ can produce substantial collection improvement.

For the patient’s journey, financing options provides a way to address their healthcare debt over an extended amount of time.  Once the patient is enrolled, they have confidence when it comes to addressing healthcare bills and are able to schedule needed procedures, no longer putting off care due to cost. PayJourney™’s patient financing solution makes it easy for patients to enroll and manage their healthcare bills.

How does PayJourney™ financing work?

1. ANYONE with a balance greater than $250 qualifies. There are no pre-qualifications or credit checks needed.
2. There is no interest or fees for the patient.
3. Credit lines up to $15,000 can be established based on credit.

To schedule a time to discuss how PayJourney™ can help you improve patient satisfaction while improving collections, please fill out the form below.