By Kristen Jacobsen, Director of Marketing
Revenue cycle leaders at the HIMSS Revenue Cycle Solutions Summit in Chicago talked about key challenges facing the industry. They tackled tough topics, including ICD-10 and the growing complexity of collecting patient balances. They talked with consistency about the need for change, the goal of patient centricity and the importance of metrics to track payment performance.
It struck me that many proven tactics marketers use to engage potential consumers can help financial leaders improve results in the patient-pay revenue cycle. Marketers consider demographics, personas, channels, messaging, conversion rates and more to tailor communications that drive results. That model can prove effective for patient financial engagement as well, leading to better experiences for patients and better financial results for the provider.
Consider the following:
Segment your audience
Marketers seek to understand common needs and behaviors of their audience because different segments are moved to action for different reasons. That’s true, too, of patients. No two patients are the same. Each has distinct financial needs or preferences that have an impact on how, when and if they chose to pay their healthcare bill. Understanding common needs, motivators and payment patterns within your patient population—and building common profiles for those segments—is the first step in building a more effective financial communication framework.
Optimize your messaging
Segmentation allows you to vary messages to patients to achieve the best results. For example, you might emphasize the availability of online payments for a demographic segment that’s inclined to pay in the moment. Or, you might tailor messages in printed bills, text communications and online payment portals based on the balance due, past payment tendencies or cycle. The right channel of communication can be as important as the right message. Therefore, you can establish messaging strategies that connect with patients where and when they choose to pay.
Measure conversions and results
Marketers measure success in conversions: a web view to an inquiry, then an inquiry to a sale. Through tracking, testing and analysis, marketers can pinpoint the various messages, communication channels and campaign processes that drive the highest conversion rates. Healthcare financial leaders can similarly focus on key “conversion” points—understanding what mix of messages, timing, billing and payment channels work best for each patient segment.
Putting it all together
The following metrics show one provider’s results applying this type of approach. The colored dots indicate messaging changes over time.By targeting messaging, testing the results and fine-tuning for improvements the provider realized a significant increase in dollars collected. This patient population was inclined to pay online, so with the right message to inspire online payment “conversions,” the provider saw a significant increase in dollars collected—nearly quadrupling during the course of the analysis.
Marketers seek to grow revenue by striving to understand how and why their customers buy. Similarly, healthcare financial leaders can gain insight into how each patient population pays and what messaging strategies drive the best results. By taking a page from the marketer’s playbook, providers can build flexibility into how they connect with patients where and when they choose to pay and find new solutions to improve financial results and strengthen patient relationships.
Throughout her career, Kristen Jacobsen has held strategic marketing roles in organizations focused on strengthening customer relationships through analytics and communication technologies. Her experience spans a wide range of industries, including healthcare.
