Question

What happens when health care organizations extend credit to patients? Should hospitals and physician offices extend credit to uninsured or underinsured patients or should it be managed by an outside financier (bank, etc)?

Answer 1

Health care costs are surging up each day that it becomes almost next to impossible for the commoners to bear up the costs.Many hospitals has came up with different tactics to solve the problem of out-of-pocket patients .Such as a discount for people who pay it by cash.So health administratives are trying out variable options to counteract the problem .Extending credit is a way to build a firm everlasting relatonship with the customer.But there are health care companies that are prepared to extend a helping hand to its potential customers .Often it happens that this health care companies have good financial assets and they often do this to bring competetion in the field.Furthermore they want to create a trusting relationship with their clientales and believes it as a prestigiuos matter of the company.Creating reputation further builds up an effective relationship with the patient and gives a promising look that the organization is financially independent.On the other hand some customers make use of this advantage and make lapses in payment.

2.Hospitals should be able to support uninsured patients as they have newer programs which are broader and more favourable to patients ,has considerably less interest fees and has negligible effect on patients credit scores.It also apply to essential health care services,and not just elective procedures.The benefits of providers comes in the form of high collection rates and greater patient satisfaction.