How and when patients pay for medical treatments is a top priority for business professionals in the healthcare sector.
If you are looking to guide hospitals, clinics and other medical organizations as a business leader, consider Northern Kentucky University’s online Master of Business Administration program. Equipped with this MBA, you will have the tools to navigate the complex world of healthcare finance. Our online degree teaches the principles of finance within a corporate setting.
What Should Business Professionals in the Healthcare Sector Know About Healthcare Financing?
There are many ways that a patient can pay for services. Many patients pay with a combination of copays and health insurance. Copays are small fees that are paid up front to the healthcare provider before assessments, treatments and follow-ups are performed. The healthcare provider then bills the insurance company for the remainder of the fee. Patients without healthcare coverage often have to pay out-of-pocket, or they may apply for credit to finance their care.
Business professionals who oversee healthcare finance must have the ability to collect fees from a wide range of sources. Individuals who seek careers in healthcare financing should have a keen understanding of the following:
- Private insurance: Private insurance is a large funding source for any healthcare provider. Each medical business must decide which insurance companies it will accept while setting up clear lines of communications with the insurance company to ensure smooth and timely billing.
- Government insurance: Many potential patients may pay for services with Medicare (for the elderly) or Medicaid (for individuals who are below the poverty line or disabled).
- Budgets: The aim of healthcare finance is to pay for salaries, utilities and other expenses. In order to know if funding levels are adequate, business leaders must understand the costs associated with running a healthcare business.
- Cybersecurity: Government regulations require providers to protect sensitive patient information and financial data from cybercriminals.
- Health savings accounts: A growing number of businesses are encouraging workers to invest in health savings accounts and flexible savings accounts. Both savings plans can be used to pay for copays or out-of-pocket expenses when needed.
- Government regulations: The passage of the Affordable Care Act created new regulations that healthcare providers must follow.
- Data analytics: Data analytics can help business professionals locate inefficiencies within the billing system. Analytics can also help hospitals cut down on patient wait times or determine which medical devices to buy.
Why Is Healthcare Financing Important?
Medical costs continue to rise in the United States. If a medical practice does not provide adequate and reliable payment options for patients, that business risks losing revenue through late or delinquent payments. Providers can avoid wasting time and energy on collecting payments by incorporating new techniques and technologies to their healthcare finance departments.
Healthcare financing allows patients to access sustainable payment plans, which can help hospitals and medical businesses grow their client base and income.
Gain the Business Skills to Lead within the Healthcare Sector
Healthcare costs reached $3.3 trillion in the United States in 2016. Managing that flow of revenue falls on qualified healthcare finance professionals. If you are looking to enter this field or to further your career within the healthcare industry, consider NKU’s online MBA program.
Learn more about the NKU online MBA program.
Sources:
Becker’s Hospital Review: 7 Thoughts on What’s Next and Best in Healthcare Finance
CMS.gov: National Health Expenditure Data: Historical
