mIn an age when people frequently use their computers to review bank statements and pay car insurance and utility bills, it may seem like it’s only a matter of time before such technological capabilities are fully realized within health care. Yet with on-line payment solutions running about $10,000, key concerns for providers considering adopting the technology are whether widespread use truly will occur and if benefits will be sufficient to justify cost.
Munson Healthcare, a six-hospital system located in northern Michigan, had the same concerns before introducing its system for providing on-line access to patient billing information in August 2001. To help minimize risk, the provider based its systems selection on market research and paid close attention to functionality and design. Since introducing a combined on-line and enhanced paper billing system, the provider has seen significant increases in cash flow and a 50 percent reduction in patient phone inquiries for billing information.
Program Development
Munson’s on-line patient billing program was conceived during general research into ways the provider could enhance technology use. Amid broad discussions of on-line capabilities, such as class registration and preregistration for appointments, focus groups gave very favorable responses to the idea of introducing various billing applications. Specifically, participants requested technology that would allow patients to view updated account information check on the status of insurance or a claim, and access information to better understand the healthcare billing process.
For additional insight into needs, Munson conducted two more focus groups. The groups reviewed the health system’s ideas for the content, format, and functionality of the on-line statement. Many respondents suggested keeping the design simple and the information consolidated and organized. At the same time, the statement needed to have a great deal of content, including information on insurance appeals.
Munson considered these perspectives when redesigning its billing statement. Updates included placing a clear division between payment activity and amounts pending with insurers. Also, a snap shot summary was included before account information, and a consistent format was used on all accounts for payment activity and indication of balance due.
To develop the appropriate technology for use with the statements, the health system decided to use an outside firm. When discussing priorities with the firm, Munson requested an application that would be customizable, would be integrated with its existing systems, and could be deployed without having to reengineer legacy and web systems. Other key areas of interest were systems’ functionality and ease of use for patients. Munson also needed to ensure compliance with HIPAA. The billing system selected provided appropriate data security with intrusion-detection technology and firewalls to keep users out of unauthorized areas. To further maintain the privacy of patients’ medical histories, Munson ensured clinical information would be absent from the on-line billing statement.
Munson’s On-Line Patient Billing System
Total time for the system’s development from focus group research to launch was about six months. The system selected includes a variety of features.
E-mail notification. Munson sends patients e-mail messages whenever their account experiences activity. For example, patients are alerted when an insurance payment has been made, a new balance is due, or a charge for a new service has been received. The notice also includes a link to Munson’s web site, providing patients with convenient access to their account.
Comprehensive account information. Munson’s on-line patient billing system contains clear, comprehensive information for the patient. An account summary shows all charges, insurance payments, balances, and amounts the patient owes. Information is updated daily, allowing patients to identify quickly when an insurance claim has been paid or when their payment has been received. Also, the on-line account has room for customized marketing messages from the health system, such as announcements for wellness classes.
Payment options. Patients can make credit-card payments to the account electronically. They also can use the site to print a payment stub to attach to payments sent by mail.
Interactivity. Patients can communicate with billing staff using the Internet. Munson’s system allows patients to update their insurance information on-line. (Because its legacy system is not able to display insurance information on paper statements, this feature has been particularly useful.) Also, patients can seek guidance from Munson’s customer-service department through e-mail.
Bill-tracking assistance. Because paperwork is generated by multiple providers and payers, patients often have difficulty tracking medical bills and payments. To assist patients, Munson’s web site devotes a section to ways patients can organize medical bills. The section includes a spreadsheet that patients can download to track how much a particular service costs, how much the insurance company paid, and how much the patient must pay Also featured are Munson’s billing policies and a glossary of frequently used terms.