We have all been there. You open up a bill from the medical clinic or hospital you recently visited and you lose your breath over the amount listed in the “You Owe” section. Even if you have insurance, the amount can sometimes still be a kick to the gut depending on the type of care you received. When it comes to healthcare, there is one thing that everyone can agree on. Healthcare is too expensive in the United States. The cost of healthcare administrative tasks are increasing at an accelerated rate. Administrative costs accounted for less than 10% of total medical expenses just 40 years ago; today these costs can be as much as 40%. Now more than ever is the time to implement an innovative approach.
Despite the healthcare system in the United States being presumably one of the most advanced in the world, it is no secret that the cost of healthcare is a financial burden for many. For many individuals and families, finding the means to pay for healthcare is resulting in tough decisions having to be made every day. Healthcare costs accumulate quickly and the level of debt that many are finding themselves in can have lasting impacts. No parent should ever be in a position where they need to choose between buying groceries for the week or paying for care.
According to a recent study published by the United States Census Bureau in April 2021, it was reported that nineteen percent of households in the United States could not afford to pay for medical care up front or when they received care in 2017 and households with children under age 18 (24.7%) were more likely than those without children (16.5%) to carry medical debt.
But what is making healthcare so expensive? Where are these hidden costs coming from and what are we going to do about it? When you are scheduling an appointment, waiting on a procedure to be authorized or a claim to be filed, the administrative tasks associated with an appointment are usually not top of mind when you are receiving care. Whether the care you are receiving is routine or emergent, the complexity of what needs to happen from an administrative standpoint in order to complete the appointment needs to be efficient. Efficiency during these critical points in the care cycle not only keeps administrative costs down, but access to care is maintained and physicians can focus on their patients, not paperwork.
Lowering Healthcare Administrative Costs is a Calling
At Signature Performance, we want to inspire new possibilities within the healthcare industry. Healthcare administration is complex and hard to do well, but we have tapped into some of the most innovative minds in the industry who are dedicated to solving and streamlining administrative burdens for payers and providers in both the federal and commercial healthcare arenas. Our team is improving not only our clients’ business, but the entire healthcare industry by finding better ways to leverage technology, implement operational readiness, and other industry-leading processes which provide technical solutions and ultimately lower the cost of healthcare administration.
Our team approaches healthcare administrative challenges head-on every day, and we want to share our industry perspective and what we have learned along the way over the last 17 years with you! Over the next few weeks, our in-house experts are going to do a deep dive into some of the biggest topics and trends surrounding the healthcare industry right now. We will be exploring topics such as claim processing, appeals, medical coding, FWA, and much more. We invite you to join the conversation!
Read the first article of this series: Exploring the Complexity of Healthcare in the U.S. for Providers
Read the second article of this series: Exploring the Complexity of Healthcare in the U.S. for Payers
Be sure to subscribe to The Link so you can stay connected to our industry experts and can have the latest content to this series delivered right to your inbox. Until then, how do you plan to make an impact in your industry this week?
Justine Olsen is the Director of Data Intelligence and Operations at Signature Performance Inc., in Omaha, NE. Signature Performance is an industry leader in reducing healthcare administration costs for private and public healthcare sectors. Our unmatched experience in serving both the payer and provider side of healthcare financial management allows us to implement innovative solutions for every administrative demand.