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Accenture Drowning in Bad Debt
Accenture Drowning in Bad Debt
Accenture Drowning in Bad Debt
Healthcare Transparency
1
97M
$96
$65
68M
2015
2016
2017
2018
2019
2020
Sources: Assumes National Average Payor Mix and National Average Historical Bad Debt Write-Offs (2014).
Accenture analysis, Americas Health Insurance Plans (AHIP), Aon Hewitt, Assistant Secretary for Planning
and Evaluation (ASPE), Centers for Medicare and Medicaid, Congressional Budget Office, Health Affairs,
Instamed, Kaiser Family Foundation, Modern Healthcare, RAND, Truven Health Analytics
Figure 2. The rise in insured patient cost sharing will boost net bad debt
by 20 percent by 2020
A provider with $1B net annual revenues could see net bad debt of $51M by 2020.
+20
+39%
-26%
%
$51M
$42M
$42M
$30M
$12M
2015
$9M
2016
2017
2018
2019
2020
Sources: Accenture analysis, Americas Health Insurance Plans (AHIP), Aon Hewitt, Assistant Secretary for Planning and Evaluation (ASPE), Centers for Medicare and Medicaid,
Congressional Budget Office, Health Affairs, Instamed, Kaiser Family Foundation, Modern Healthcare, RAND, Truven Health Analytics
Kaiser Family Foundation 2015 Employer Health Benefits Survey, September 25, 2015. http://kff.org/health-costs/report/2015-employer-health-benefits-survey/
2
Bob Herman, High-deductible plans dominate next open enrollment, Modern Healthcare, November 13, 2014. http://www.modernhealthcare.com/article/20141113/NEWS/311139966
3
4
5
Ibid.
Figure
3.3.
Proactive
patient
payment
strategies
focused
onon
pre-service
processing
Figure
Proactive
patient
payment
strategies
focused
pre-service
processing
can
significantly
decrease
bad
debt
can
significantly
decrease
bad
debt
Estimated
value
proposition
Estimated
value
proposition
~0.5
~0.5%%
of of
Total
NetNet
Revenue
Total
Revenue
(Annual
Recurring
Run
Rate)
(Annual Recurring
Run
Rate)
or or
$$55M
M
Operating
Model
Operating
Model
Pre-service
Contact
Center;
Pre-service Contact
Center;
skilled
resources
in financial
skilled
resources
in financial
clearance
andand
counseling
clearance
counseling
Key
KeySolution
Solution
Components
Components
forfor
every
every
$$11BB
in in
NetNet
Revenue
Revenue
Real-time
Insurance
Verification
Real-time
Insurance
Verification
& Liability
Estimation
& Liability
Estimation
Eligibility,
covered
benefits,
Eligibility,
covered
benefits,
copay,
deductible,
coinsurance
copay,
deductible,
coinsurance
Predictive
Analytics
Predictive
Analytics
for for
account
segmentation,
account segmentation,
propensity
to pay,
andand
refined
propensity
to pay,
refined
adjudication
approaches
adjudication
approaches
$$
Upfront
Payment
Upfront
Payment
Pre-service
notification
/ collection
Pre-service notification
/ collection
or capture
of authorized
payment
or capture
of authorized
payment
for for
deferred
charging
deferred
charging
Expanded
Self-Service
Options
Expanded
Self-Service
Options
enabling
lower
cost
to
collect,
enabling lower cost to collect,
easeease
of access
for for
patients
of access
patients
Sources:
Accenture
analysis,
Americas
Health
Insurance
PlansPlans
(AHIP),
Aon Aon
Hewitt,
Assistant
Secretary
for Planning
and and
Evaluation
(ASPE),
Centers
for Medicare
and and
Medicaid,
Sources:
Accenture
analysis,
Americas
Health
Insurance
(AHIP),
Hewitt,
Assistant
Secretary
for Planning
Evaluation
(ASPE),
Centers
for Medicare
Medicaid,
Congressional
Budget
Office,
Health
Affairs,
Instamed,
Kaiser
Family
Foundation,
Modern
Healthcare,
RAND,
Truven
Health
Analytics
Congressional
Budget
Office,
Health
Affairs,
Instamed,
Kaiser
Family
Foundation,
Modern
Healthcare,
RAND,
Truven
Health
Analytics
Methodology
Sarah Sinha
sarah.l.sinha@accenture.com
Follow us on Twitter:
@AccentureHealth
About Accenture
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