P HOTO C RE DIT OF IN GRA M IM AGE S
O F F IC E S PAC E
Patient Consumerism W H Y T H E H E A LT H C A R E INDUSTRY SHOULD TA K E N O T E F R O M HISTORY
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Wri t t en by J a mes. N. G i o rda no
mericans are confused, anxious and frustrated by rising and unpredictable copays, deductibles, and out-of-network expenses. COVID-19 has presented additional financial challenges and barriers to care. The patient financial burden continues to increase and most patients don’t understand why. What they do know is that it’s getting costly and it’s getting personal. Patients find their specialty and primary care doctors are turning to out-ofnetwork models at a rapid rate. Patients utilizing in-network doctors and facilities are still faced with their insurance plan’s high deductibles, copays and coinsurance. The learning curve is steep and patients are just educating themselves. NPR and Kaiser Health News “Bill of 3 6 | M AY / J U N E 2 0 2 0
the Month” article uses actual patient bills to educate their readers on how to be more active in managing their unexpected healthcare costs. Bills selected run the gamut of circumstance and cost to the patient. What does this mean to the healthcare industry? Unfortunately, when increasing amounts of medical cost fall on the patient, the choice of providing care or pursuing payment weighs on all medical providers. The pursuit of payment is costing an average of 27% of total revenue for physician groups and 21% for hospitals, according to a recent brief by the Center for American Progress. A patient’s access to care is no longer just limited by geography. Patients are forced to consider the cost of care even for preventative care. The financial afflic-
tion associated with a patient’s responsibility for their own care is forcing the healthcare industry at large to rethink the way they attract new patients, keep existing patients and collect on payment. In this economic and socially shifting environment, it is more important than ever that the industry shift their current collection paradigm to a more customer centric model. Learning from Other Industries Mortgages expanded the housing industry making homeownership a possibility for those lacking large amounts of capital at the ready. Retail credit cards transformed the way people shop and how shoppers engage with retailers. In 1920, Americans were introduced to the first mass-produced, “af-
