Earlier this year, Charles Siegel visited the emergency department for chest pain. Fortunately, the chest pains were short-lived, but Charles and Rene Siegel found themselves overwhelmed by the bills that ensued. "The bills were lengthy and confusing, and we were concerned that we had to pay the entire bill immediately," says Charles Seigel.
In an effort to address patient concerns regarding healthcare billing, Cedars-Sinai Medical Center is one of a growing number of hospitals scrapping antiquated and confusing patient statements for a friendlier, patient-focused billing and collection process.
In a recent survey of patients and their families, the Healthcare Financial Management Association (HFMA) and the American Hospital Association (AHA) found that respondents found the patient bill to be a symbol of confusion and high costs. Nearly two years ago, HFMA and the AHA launched the Patient Friendly Billing Initiative to reduce the confusion around hospital bills.
Committed to meeting the needs of the patient and the consumer, Cedars-Sinai implemented the patient friendly billing system in June 2002. Adopting a new system required a shift in staff thinking, redesigning the flow of patient information and tailored software. Cedars-Sinai's Patient Financial Services Department began reviewing the content, format and timing of all bills, statements and letters sent to patients.
Before, patients received several pages of communication regarding their treatment at the Medical Center. Bills may have been as long as 12 pages, and were often confusing to some patients.
With the adoption of the new patient friendly billing system in June 2002, patients now receive a timely, double-sided bill which clearly outlines a summary of their account, much a like a credit card statement. The new bills have a consistent look and feel and a concise, personalized message to the patient. The previously confusing itemizations have been replaced by a detailed summary of the account and clear payment instructions.
Since the adoption of the new system, patients have been much more agreeable to the new functionality and design of the updated statements. In fact, the Siegels were back at the Medical Center in August and were amazed at the new bills.
"The difference between the old bills and new bills is like night and day. The new bills are easy to read and understand so that we know exactly what we owe and what is being paid for by our insurance company," says Rene Siegel, who also works at Cedars-Sinai.
While most of the feedback to the new Patient Friendly Billing initiative is anecdotal, Cedars-Sinai has found that the customer service department receives fewer calls and complaints than before. Since the adoption of the new system, the customer service department reports:
* 31% decrease in the incoming call volume * 3% reduction in "talk time"
"By presenting customized, easier-to-understand information to our patients, we are beginning to build customer confidence." says Edward Prunchunas, senior vice-president of finance for Cedars-Sinai. "This is the first step in an ongoing process to reduce confusion and improve customer service. Oftentimes, patient financial services is the last point of contact between hospital and patients, and we are continually working to ensure that patients receive great patient care and customer service, from start to finish."
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