The recent economic downturn and the increasing use of high-deductible insurance plans “has driven patients to want to put off paying their bills,” Michael explains. Whether it’s for a hip replacement or a broken bone, he frequently sees patients on the hook for a $3,000 to $5,000 deductible.
“We have to be able to be the creditor,” says Michael. “We’re essentially a bank at that point.”
Between 2008 and 2012, multi-specialty practices saw their bad debt go up 14 percent, according to a survey by the , a trade organization for doctor practices. That’s money that practices were owed but couldn’t collect. Some of them have begun to change their billing strategies to combat those debts, says , a principal consultant with the MGMA Health Care Consulting Group.