CHATTANOOGA, Tenn. – During Collectors Challenge month in April, employees of North American Credit Services (NACS) in Chattanooga, Tennessee found many creative ways to raise $1,772, including NACS annual donor match for a grand fundraising total of $3,544, all in support of consumer financial literacy programs. “Our employees understand that it is important that we provide leadership and compassion in assisting consumers in the challenges often encountered in dealing with debt.” shared Dallas S. Bunton, Sr., CEO and Chairman NACS and Medical Services, Inc. “Providing tools and places of education provide hope and clarity for all involved.”                    

NACS employees participated in campus fundraising activities such as the Collectors Charity Challenge Hot Dog Picnic and People’s Choice Chili Cook-Off Competition as well as through offering casual dress days. For a $3 ticket donation, employees were provided a hot dog picnic pack for the picnic and a $5 donation for the chili cook-off allowed employees the opportunity to cast a personal vote for the top employee chili chef. A dozen employees entered the competition to support the great cause of scholarship opportunities through the ACA International Education Foundation. Employees also made donations to dress casual in the office for up to 30 days and chances to win drawings.

Money raised from the month-long Collectors Charity Challenge events allows the ACA International Education Foundation  to expand and increase financial literacy initiatives through research, education, job training, and public advocacy.

To learn more about the ACA International Education Foundation (ACAEF) charity or North American Credit Services, an internationally certified Professional Practices Management System (PPMS) accredited agency visit www.NACScom.com.

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PHOENIX, Ariz. –BillingTree®, the leading payment technology provider today announced a newly formed partnership with Renkim Corp. offering Payrazr Marketplace and BillingTree clients access to paper and/or email invoicing and statements, mail tracking, EBPP and more. The outsourced service enables companies to expand their communications through Renkim’s capabilities.                                   

Renkim is the first new partner to be offered within the new ‘Outside Services’ category on the Payrazr Marketplace. As a leader in their space, Renkim is recognized for their ability to handle financial and mission-critical documents at credit, collection, healthcare, insurance, automotive and utility companies located throughout North America. 

“Renkim is excited to join BillingTree’s Payrazr Marketplace as the inaugural partner offering,” said Rob Augg, Renkim’s VP of Sales. “Sharing our company’s expertise in print, mail and e-billing combined with BillingTree’s payments knowledge and technology will be a true value-add to both our customers and theirs, as well as future clients” 

“Our goal is to expand the value and reach of BillingTree’s Payrazr Marketplace, giving clients access to world class products developed in-house plus services offered by our partners. The addition of Renkim to this new Outside Services Category offers clients more tools to free up staff resources for other critical business tasks.” said Edgars Sturans, CEO at BillingTree.  “BillingTree will continue to review potential partnerships that add value to our customers and make it easier for them to engage with our partners”. 

To learn more about Renkim services or inquire about having your solution represented in the Payrazr Marketplace Outside Services Category visit www.Payarzr.com   

About Renkim

Renkim, founded in 1982 is employee-owned and specializes in the distribution of mission critical financial messages via paper and electronic channels. Our client base and experience are within the healthcare, ARM, insurance, financial, consumer media and automotive sectors. Renkim360 client portal provides clients with archival access for all paper and electronic messages, mail track, eNotice click tactics and reporting. Our commitment is client focused, providing Level 1 service- Accuracy and On-Time, with strict adherence to compliancy consisting of Hitech/HIPAA, PCI, GLBA, FISMA and SOC Type II. Contact: Rob Augg, Vice President, Sales 248-981-4676. 

About BillingTree

BillingTree® is the leading provider of integrated payments solutions to the healthcare, ARM and financial services industry verticals. Through its technology-enabled suite of products and services, BillingTree enables organizations to increase efficiency and decrease the costs of payment processing while adhering to compliance regulations. Leveraging more than a decade of market experience, BillingTree is dedicated to growing payments with technology through an integrated omni-channel offering, a suite of proprietary products and value-added services, and a Company-wide focus on delivering extraordinary customer service.

COLLINGSWOOD, N.J. — HS Financial Group, LLC (HSF) is pleased to announce it has surpassed the five-year mark as a subcontractor on the Department of Education’s (ED) Private Collection Agency (PCA) contract.  Working for ED PCA GC Services Limited Partnership since 2011, the company has recovered more than $100 million in defaulted student loans while helping nearly 5,000 borrowers come out of default to continue on the path to fully repairing their credit.  In that time, the company has also maintained a consistent compliance rating of 96% to 98% in call reviews.

“We are pleased to reach this milestone in longevity as an ED PCA subcontractor and could only have achieved it through the hard work and diligence of our dedicated and professional workforce,” stated Timothy Sullivan, a U.S. Navy veteran and attorney who owns and operates the firm, continuing, “And we look forward to finding the right partner among restricted PCAs to help with the work on that contract initiative as well.”

When the current uncertainty surrounding the ED PCA program reaches a resolution, HSF will be well suited to help any restricted, small-business PCA meet its subcontracting goals in the small business category.

HSF is a member of the Fed Cetera Network, and was awarded the 2016 Robert J. Prince Award for outstanding performance as a subcontractor member of the Network. https://insidearm.com/news/00041777-hs-financial-group-wins-award-for-federal/. The award is given by Fed Cetera to a small business subcontractor whose exceptional performance, provided in a compliant manner, has had a substantial impact on performance among Federal small business subcontractors in the previous year.

About HS Financial Group

HSF and its affiliated creditors’ rights law firm are performance-driven, certified Veteran-Owned Small Businesses that have earned a reputation for Professional, Ethical, and Excellent debt collection services. Based in Cleveland, Ohio, HSF provides fully-integrated accounts receivable management solutions to a variety of businesses, higher education institutions, and government entities.  Since 2000, our team of collection professionals has delivered superior service to our clients.  We strive for quick and efficient recovery of your delinquent accounts and we maintain a personal working relationship with every client, and will do the same with you.  Click here to learn more. www.hsfgroup.net

About Fed Cetera

Fed Cetera helps companies in the collection industry pursue opportunities with the Federal government.  Federal PCAs have strong incentives to give a portion of their core collections work to qualified small businesses.  Companies working with Fed Cetera to pursue Federal opportunities recently surpassed $70,000,000 in total billings for their work provided as prime contractors for ED and subcontractors to ED PCAs. Click here to learn more. 

A New York U.S. District Court recently granted summary judgment in favor of defendant Rite Aid Headquarters Corporation in a Telephone Consumer Protection Act (TCPA) class action. Healthcare providers can take away an important, preventive blueprint to avoid litigation.

A copy of the court’s order can be found here.

Before the Court was the Plaintiffs motion for class certification, under Federal Rule of Civil Procedure 23, and the Defendant’s motion for summary judgment or, in the alternative, partial summary judgment. 

Editor’s Note:  A motion for summary judgment is based upon a claim by one party (or, in some cases, both parties) that contends that all necessary factual issues are settled or so one-sided they need not be tried. The summary judgment is appropriate when the court determines there no factual issues remaining to be tried, and therefore a cause of action or all causes of action in a complaint can be decided upon certain facts without trial.

The court’s opinion and order found that, since the flu shot reminder calls in the complaint were “health related,” Rite Aid did not have an obligation under the TCPA to obtain express written consent. However, lest providers think that any communication they send will be exempt from the long arm of the TCPA, this case still holds some cautionary pivot points that providers would do well to consider in their communications with patients, former patients and prospective patients.

Background

In Zani v. Rite Aid Headquarters Corp., 14-cv-9701, plaintiff Robert Zani alleged that Rite Aid violated the TCPA, 47 U.S.C. § 227 by placing a recorded flu shot reminder to the cell phones of the drug store’s patrons who had previously received the shot at Rite Aid Stores. At the time Plaintiff Zani received his shot, it was undisputed that he provided Rite Aid with his cell number, and had also consented in writing more than once to be contacted by Rite Aid regarding “refill reminders . . . or health related benefits and services.”

Rite Aid argued that not only had Zani consented to the calls, he had provided his number in connection with his previous flu shot. Plus, they argued, the calls fell well within the broad “Health Care Rule,” 47 CFR 64.1200(a)(2), adopted under the TCPA in 2013, under which “health care messages” are exempt from written consent requirements for prerecorded and autodialed calls made to cell phones.

Decision

The court agreed with Rite Aid and found three factors present in the undisputed facts of this case germane to defining the scope of the Health Care Rule: (1) The call concerned a product or service that is health related, which would include administration of medication; (2) The call was made to a patient with whom the health care provider had an established health care relationship; and (3) The call concerned the individual health care needs of the patient recipient. (The prerecorded call contained a reference to a special flu shot for those over 65, and Plaintiff Zani was over 65).

Although these factors were sufficient, the court suggested they were not always necessary to determine whether a call that delivered a healthcare message—albeit a marketing call—was subject to the Health Care Rule. In other words, because the call was deemed a healthcare call, Zani’s argument that it constituted “marketing” was void, because the Health Care Rule applies to any message, whether marketing or not, that is otherwise health related.

Since Zani had provided Rite Aid consent before the call was made, and the call did not cause Zani to incur a cost from his cell provider, and was not counted against any plan limits that applied to Zani’s wireless account, the court granted summary judgment and denied his motion for class certification.

insideARM Perspective

Given that the scope of the Health Care Rule has long arms and is open to judicial interpretation, this decision provides some good structure and offers the healthcare provider community some clarity on the application of the exemption. Even with a good outcome for providers, the case also makes us bristle at the effects that a similar law suit could have on, say, a small healthcare provider without Rite Aid’s deep pockets. Litigation of this nature could be economically devastating.

Far beyond the purview of a drugstore pharmacy chain, the types of calls a healthcare provider could potentially deploy (for which there is exigency and a health care treatment purpose) are more numerous, and could include appointment and exam confirmations and reminders, calls about wellness check-ups, hospital pre-registration instructions, pre-operative instructions, lab results, post-discharge follow-up intended to prevent readmission, prescription notifications and home health care instructions.

It’s great news that Zani v. Rite Aid establishes that while some of these calls could also include a marketing intent (like vaccine reminder calls), once they satisfy the conditions of the Health Care Rule exemption, prior express consent is not required to place them.

Consent protocols seem like cheap insurance

For all the risk management issues providers cannot directly control, developing a clean consent/withdrawal of consent policy is not one of them. Could healthcare providers, when requesting patient information, take pre-emptive steps to avoid potentially costly litigation centered on the issues argued in Zani?

Consider, at every point where patient information is collected, developing simple protocols that:

1. Establish consent, even if as a healthcare provider, you may not need it. Specifically request cell phone numbers and email addresses at all registration points. Disclose, in plain English, that furnishing the number or email address relays consent for the provider (and its vendors) to call or send messages (potentially automated/prerecorded or artificial voice) intended to service the relationship and the account, including informational healthcare and/or marketing communications.
2. Clearly define the terms of the consent period. Will the consent continue into perpetuity? Until specifically withdrawn? Will it terminate one year after the last account activity? Consider whether your technology infrastructure is capable of automatically weeding your call lists of inactive patient numbers.
3. Set forth a simple opt-out method, including an email address, a website and a snail mail address on all communications.

It’s entirely possible that these TCPA suits will die down once there is sufficient case law to guide the application of the Health Care Rule exemption. In the meantime, establishing policies that would fortify the defense of providers seems like a sound use of time and resources.

CALABASAS, Calif. — Earlier this month, Cedar Financial was graced with the opportunity to volunteer our time and energy with the MEND Poverty drive in Southern California. MEND Poverty was founded in the early 1970’s as a non-profit organization helping all members of the community living in poverty reestablish their self-reliance skills and begin to contribute as active members of society. MEND stands for the work they put forth – Meeting Each Need with Dignity. MEND provides emergency food, clothing, medical, vision, and dental care to hundreds of families in the surrounding areas in need. The most impressive element to the success at MEND is that over 94% of the amazing work they contribute to the community is volunteer work.  At the Pacoima MEND location, over 16,000 hours are donated each month from volunteers of all backgrounds, coming together to help put people first.

During our day with MEND, Cedar Financial staff were given a private tour of the facility, opening our eyes to how much work goes into giving back to the community. Some of the more fascinating aspects we observed were the relationships MEND has built with neighboring college universities and the option for students to gain credited hours in the medical, dental, and vision care fields towards their degrees. This relationship not only helps the students, but more importantly, gives community members access to vital healthcare services they would otherwise be unable to attain.

The staff of Cedar Financial were directed to the food and package facility at the MEND HQ to help prepare canned foods, soft drinks, and grains for a national food drive set to take place over the weekend. It was phenomenal to see all the resources the organization had in stock, however, the more we worked to prepare bags, the more it became very clear that there are never enough donations, either food or clothing, to help sustain the support MEND has been able to give. This experience showed our staff the importance of monthly food drives, donating used clothing, and even volunteering an hour or so to those who are less fortunate.

Learn how you can help by visiting www.MENDPOVERTY.org 

About Cedar Financial

Since 1991, Cedar Financial has strived to become a leader in domestic and international debt recovery.

Our mission is simple; to provide the most comprehensive and professional debt recovery services available to our clients. All this, while focusing on the unique challenges in your industry. Our industries include international and domestic debt collections in Education, Healthcare, Commercial, Government and Retail.

At Cedar, our goal is the same as yours, to negotiate and resolve disputes professionally and on-time. Cedar knows your customer relationships matter. Our online presence combined with current technologies and personnel education programs mean higher conversion rates and a more positive payment experience for your customers. Learn more at www.CedarFinancial.com

ST. GEORGE, Utah, — TCN, Inc., a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs and collection agencies worldwide, announced today the launch of AgentSMS, a new SMS texting feature for its cloud-based contact center platform, TCN Platform 3.0. With AgentSMS, contact center agents and customer service professionals can instantly respond to customers’ needs, confirm appointments, send payment reminders and even alert individuals of emergencies via text messages. Fully integrated with TCN Platform 3.0’s business intelligence (BI) suite, AgentSMS enables businesses to engage customers more effectively, enhance communication and increase sales by implementing omni-channel strategies. 

A recent survey conducted by Pew Research Center found that 95 percent of Americans own cell phones, and 77 percent of cell phone owners own a smartphone.  The survey finds that texting is the most widely used and frequently used app on a cell phone with 97 percent of Americans using it at least once a day.  Studies have shown that Short Message Service (SMS) marketing has a 98 percent open rate, compared to email marketing with a 22 percent open rate. SMS has been proven to be a more effective and direct way to get a message to a customer. 

“AgentSMS is a highly effective communications tool, and we are confident that it will help businesses communicate with their customers in a more efficient and cost-effective way,” said Terrel Bird, CEO and co-founder of TCN. “AgentSMS is just one more tool we’ve added to our comprehensive call center suite to enhance our services, and we are committed to providing the best cloud-based contact center technology to our customers around the world.” 

With its pay-for-use pricing structure and the ability to distribute SMS messages domestically and internationally, TCN’s platform is suitable and scalable for businesses of all sizes. 

Key features of AgentSMS include:

• Business Intelligence (BI) — Offers customized reporting and data-driven feedback with the ability to view and evaluate the impact and progress of a campaign.
• No Send Limits — Instantly sends hundreds of thousands of 160-character text messages to customers around the globe at one time.
• SMS Responses — Issues a call back number for each SMS message sent, allowing the recipient to be directly connected to a contact center agent via phone call.
• SMS Codes — Equipped with the standard command codes (Stop, Yes, No, Confirm) for immediate responses to upcoming appointments and subscriptions.
• Omni Channel — Integrated with voice, texting and email campaigns to offer a comprehensive approach to outbound communication efforts.
• List Building — Scrub cell phone data to repurpose and build future SMS campaign lists.
• Customized — Offers an easy-to-use API, a variety of SMS message templates and outbound filter options. 

AgentSMS is built on top of TCN’s advanced cloud-based contact center suite, Platform 3.0, that eliminates the need for complicated hardware. The platform improves connectivity between agents and customers and increases efficiency without the need for additional staff. It provides industry-leading features such as predictive dialer, IVR, call recording and business intelligence. Its “always-on” cloud-based delivery model gives end-users the ability to quickly and easily scale and adjust to evolving business needs. 

To learn more about TCN’s AgentSMS, click here. 

About TCN

TCN is a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide. Founded in 1999, TCN combines a deep understanding of the needs of call center users with a highly affordable delivery model, ensuring immediate access to robust call center technology, such as predictive dialer, IVR, call recording, and business analytics required to optimize operations and adhere to TCPA regulations. Its “always-on” cloud-based delivery model provides customers with immediate access to the latest version of the TCN solution, as well as the ability to quickly and easily scale and adjust to evolving business needs. TCN serves various Fortune 500 companies and enterprises in multiple industries including newspaper, collection, education, healthcare, automotive, political, customer service, and marketing. For more information, visit http://www.tcnp3.com or follow on Twitter @tcn.

This article, co-authored by Allyson Baker, Peter S. Frechette, and Andrew T. Hernacki, previously appeared on the Venable blog, and is republished here with permission. This case is highlighted today in anticipation of oral arguments taking place tomorrow, May 24, in PHH Corp. v. Consumer Financial Protection Bureau.

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The Tenth Circuit has solidified a circuit split with the D.C. Circuit regarding the status and appointment of the Securities and Exchange Commission (SEC) administrative law judges (ALJ). A majority of the three-judge panel that heard the Bandimere case in December of 2016 ruled that ALJs are “inferior officers” under the Appointments Clause. As such, the ALJ should have been, but was not, constitutionally appointed, requiring the SEC’s judgment to be set aside. On May 3, 2017, a majority of the full Tenth Circuit declined to rehear the case en banc, with two judges dissenting.

In declining to change course, the Tenth Circuit remains split from the D.C. Circuit, which ruled in Raymond J. Lucia Companies, Inc. v. SEC that SEC ALJs are not “inferior officers” under the Appointments Clause. The split focuses primarily on differing applications of the Supreme Court’s decision in Freytag v. Commissioner of Internal Revenue — and is centered on whether courts should look to a broad array of factors contributing to the “exercise significant discretion” in “carrying out . . . important functions” (Tenth Circuit), or whether courts need primarily look to the ability to render final decisions (D.C. Circuit) when determining the status of agency personnel.

To date, argument surrounding ALJs’ status as “inferior officers” has centered on the SEC. However, as we noted previously, the D.C. Circuit has directly imported the Appointments Clause issue into Consumer Financial Protection Bureau (CFPB) jurisprudence, specifically requesting briefing on the “appropriate disposition” of the PHH Corp. case, if the en banc D.C. Circuit concludes that an SEC ALJ is an inferior officer rather than an employee.

Application of the SEC Appointments Clause issue from Lucia/Bandimere to the CFPB would revolve around the similarities between the administrative adjudicatory frameworks of the two agencies and the authorities wielded by each agencies’ ALJs. If the D.C. Circuit reverses course in Lucia, the court will need to compare the duties and discretion of SEC ALJs to those used by the CFPB.

In PHH, the ALJ Appointments Clause issue presents an additional (and perhaps alternative) constitutional question to the D.C. Circuit’s review of the panel’s ruling regarding the structure of the CFPB. Oral arguments for both Lucia and PHH are scheduled for May 24, 2017.

This is the third in a three-part series on new financing options for insured patient self-pay accounts. Here is the first part, and here is the second part.

____

To varying degrees, new entrants to the patient finance game are investing in the future to help providers and patients adapt to the new reality of HDHPs and the increase in payer diversity they’ve ushered in. 

For patients, these game-changing companies are working to gently land the “You really are the payer now” news, and help patients get empowered and stay in control. The intent to provide good “whole patient” care, including healthcare financial services, is made more powerful with a combination of technology, scale, partnerships and increased access. 

For providers, both patient satisfaction and bottom line get stronger if patients know their obligations and have a manageable way to meet them up front–at, or preferably before–the point of service. The field is wide open and very hungry for simple practice management solutions that prevent debt, neutralize risk, and improve debt recovery operations. 

Game Changer Profile: MedPut 

The basics

Set to launch in summer 2017, MedPut takes an almost peerless approach to bridging the self-pay financing gap by positioning itself as part of an employer-sponsored benefits lineup. Offering small loans repayable through payroll deduction (or converted to ACH payments in the event of a job loss or change), MedPut allows borrowers to upload bills and secure loans equal to a maximum of 10% of a workers’ after-tax salary. Employers can offer MedPut alongside HSAs and other tools to help employees cope with the rising percentage of medical office revenue that must now come from patients. 

How it works

MedPut funds nearly any medical expense up to a limit and works with most providers, in-network and out-of-network.

• MedPut partners with employers to agree on credit line terms and enroll/onboard employees.
• When patients incur OOP medical costs not covered by insurance, they can upload their bill to an online portal, and MedPut partners with an agency to try to negotiate a discount. This is especially valuable with out-of-network bills.
• If a discount is negotiated, patients pay MedPut the negotiated amount, plus a service fee (some portion of the discount).
• Funds are loaned at a rate usually under 5% APR, and are transferred for medical bill pay.
• MedPut and employer then work to initiate payroll deduction, which takes place over the course of one year. When one debt is repaid in full, another can be uploaded.
• If there is a job loss or change, patients can convert their loan to ACH repayment in lieu of payroll deduction.
• Employees can see savings from negotiation, view balance and make payments online. 

What it adds to the healthcare finance game

Distribution revolution

• Medical financing as an employment benefit is uncommon. Most companies looking to help solve the funding gap for OOP medical expenses are not reducing risk by partnering with employers to secure payroll deduction.
• By producing a value proposition for employers who are pressed to offer only high deductible health plans, MedPut is also creating a captive patient market. As long as the employee is working, they are re-paying their medical debts almost painlessly.

Loan size & time horizon matters

• Lines of credit are usually small (less than 10% of employee’s monthly take home pay), so risk is further mitigated for MedPut.
• Duration of loan is also limited in MedPut’s model; loans must be repaid within a year’s time. 

Providers, take note

Cashflow: Once the bill is approved and the loan is in place, providers are paid by MedPut, ending the risky wait that providers have had to carry for too long.

Risk shift: By shifting the risk of default to MedPut, providers are able to maintain better cashflow and healthier books.

Negotiated debt: The firm’s model calls for bill negotiation, and discounts can approach 30%. While sometimes healthcare providers aren’t paid at par, MedPut still solves a collections problem.

MUNCIE, Ind. –– Ontario Systems, a leading software provider to the healthcare revenue cycle management (RCM), accounts receivable management (ARM) and government (GOV) markets, announced its Hosted solutions have achieved an attestation of compliance with the Payment Card Industry Data Security Standard (PCI DSS) version 3.2 today from an independent third party. Validating the company’s Hosted applications meet all the requirements of the PCI DSS, along with Ontario’s remaining products, the attestation fulfills compliance requirements for any RCM, or ARM operation across the country using the company’s Hosted solutions.

“Our clients demand compliance to those requirements under the PCI DSS,” says Rick Clark, Ontario Systems Corporate Security Director. “Those mandates, by industry standard, state and federal governments, and clients continue to be some of the most pressing challenges facing revenue professionals across the country. This attestation of our Hosted products’ compliance, while maintaining certification for the rest of our solutions, illustrates Ontario Systems’ continuing commitment to helping our customers navigate an ever-complex regulatory environment.”

The PCI DSS standard covers a list of controls that must be configured per certain requirements – including monitoring systems, change management protocols, and encryption processes – and the organization must prove successful to a Qualified Security Auditor (QSA) to receive a positive attestation. Those interested can verify Ontario Systems’ achievement by contacting the company to request an Attestation of Compliance.

“Using our Hosted solutions can help financial executives avoid many costs and risks associated with independently-developed compliance solutions,” Clark adds. “Maintaining proper security reduces the burden on our customers as they work through their own PCI audits. We look forward to continuing our assistance in their achievement, and optimizing their receivable platforms for years to come.” 

About Ontario Systems

Ontario Systems, LLC is a leading provider of software and solutions to the revenue cycle management (RCM), accounts receivable management (ARM), and government markets. Ontario Systems’ robust software portfolio includes product brands such as Artiva HCx™, Artiva RM™, Contact Savvy® and RevQ®. The company’s customers include 5 of the nation’s 15 largest hospital networks, 8 of the 10 largest ARM companies, and more than one hundred federal, state and municipal government agencies in the U.S. Established in 1980, Ontario Systems is headquartered in Muncie, Indiana. 

This is the second in a three-part series on new financing options for insured patient self-pay accounts. Here is the first part, and here is the third part.

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To varying degrees, new entrants to the patient finance game are investing in the future to help providers and patients adapt to the new reality of HDHPs and the increase in payer diversity they’ve ushered in. 

For patients, these game-changing companies are working to gently land the “You really are the payer now” news, and help patients get empowered and stay in control. The intent to provide good “whole patient” care, including healthcare financial services, is made more powerful with a combination of technology, scale, partnerships and increased access. 

For providers, both patient satisfaction and bottom line get stronger if patients know their obligations and have a manageable way to meet them up front–at, or preferably before–the point of service. The field is wide open and very hungry for simple practice management solutions that prevent debt, neutralize risk, and improve debt recovery operations. 

Game Changer Profile: CarePayment 

The Basics 

CarePayment uses technology and analytics to partner with medical facilities and offer whole lifecycle, 0% APR financing solutions to patients for whom OOP payments are a particular burden. Backed by parent Aequitas, and initially funded in part by the Kellogg Foundation and other impact investors, CarePayment sought to solve the problem of poor and working class people needing a better way to manage medical debt without going to collection and kicking off a storm of negative events.  Early risk capital supported a new model to the point where its results enabled access to more traditional forms of prime financing to bring costs down for patients. 

How it works 

For patients

• Patients receive care from a hospital or other healthcare provider partnered with CarePayment.
• At the point of service, patient ID and financial position is verified by an algorithm, and a consolidated report that suggests the right payment plan, or confirms eligibility for charity care, is generated
• Once the patient’s insurance company pays its portion of the bill, if any, the provider may refer the remaining balance to CarePayment
• CarePayment—regardless of a patient’s credit profile— deploys a welcome kit to the patient. It contains a proposed payment plan for the outstanding balance that includes a 0% APR loan and low monthly payments.
• If the account is in good standing, future charges are also approved and patient can begin repayment on those too. 

For providers

• CarePayment’s program is funded by purchasing accounts-receivable of patients it deems most likely to re-pay, based on its proprietary risk-scoring algorithm, at a discount to their stated balance.
• As patients demonstrate a propensity to pay, CarePayment purchases the remaining balance from the provider.
• The Company offers all patients the same zero-interest, revolving-credit account and online account-management services, even for patients whose accounts it does not directly purchase.
• CarePayment closes and returns unpaid patient accounts to the healthcare provider, who may later engage a collection agency. It doesn’t report to credit-ratings agencies. 

What it adds to the healthcare finance game

Important regulatory dialogue: what a collection company is/isn’t

• The company bills itself an outsourced customer-service provider, not a bill collector. Its focus is increased revenue for providers, and improved patient satisfaction.
• The company’s focus is on reducing bad debt, offering advance funding, and guaranteeing net financial improvement and a cap on recourse.
• The company has engaged lobbyists to help them draw a line in the industry between its approach and that of debt collectors. Otherwise, any regulations pending or future that would stop hospitals from selling accounts before the 90-day mark could be troublesome for CarePayment’s business model.

Patient engagement to improve collection rates 

• CarePayment offers 0% APR loans to all patients who don’t qualify for charity care on the premise that happy patients who are treated like customers instead of deadbeats are more likely to pay their bills.
• The company offers co-branded informational and marketing materials, membership cards and PR to raise awareness in the provider’s community.
• Since there is no application, there is no rejection and no impact on a patient’s credit score.
• At any point, patients can learn about how to manage their medical financial needs, access their accounts or make a payment through a customer service portal. 

Technology to influence financial outcomes 

An easy-to-read, healthcare-focused financial insight report on each patient is generated at the point of service. This level of information, obtained early in the revenue cycle, can help the system recommend feasible payment plans, reduce days in accounts receivable, bad debt and costs to collect. The report enables: 

• Validation of patient identity
• Standardized charity care validation process
• Cleaner downstream billing and collections processes, when needed
• Compliance with financial clearance and assistance policies 

Providers, take note

• CarePayment says it’s able to double collections at the point of service net of the purchasing discount and increase them an average of 50% even beyond the 60-day mark. On top of making capital available to providers, this has led to an improvement in providers’ financial performance, and has reduced bad debt.
• The company’s results are at least in part driven by their work to get patients into a payment plan as early in the revenue cycle as possible, when the desire to pay is highest.
• There is at least anecdotal evidence that offering a comprehensive, turnkey financial services program can be a differentiator in the medical marketplace.
• A standardized approach to payment plans and collections can help providers get better insights into accounts receivable, and can help build a stable funding base.
• CarePayment’s program includes mandatory staff training, ongoing monitoring and testing, and regular internal and third-party audits. This proactive compliance posture helps with, but does not remove, providers’ compliance obligations
• An implementation team provides support to providers throughout the relationship by integrating with existing systems and processes, often streamlining workflows in the process.
• A full account audit of transactions is ongoing to provide a full audit trail and transparency. This includes program management tools via a portal with detailed account information and reports, and a performance dashboard, ongoing assessments and analysis of financial data and historical patient-pay performance. This information is used to customize a solution that offers the most benefit to providers.

 Look for our second RevCycle Game Changer profile next week. Here is the first one.