Geisinger, PayZen partner on AI-based medical billing app
Patients will have the ability to schedule payments on various timelines, either on a monthly basis or in a lump sum.
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Geisinger has teamed up with financial tech startup PayZen to deploy artificial intelligence technology in a customized payment scheduling application available to all Geisinger patients with out-of-pocket balances over $250 after insurance payments.
Through the billing tool, patients have the ability to schedule payments on various timelines, either on a monthly basis or in a lump sum. Patients will not be charged fees or interest if they elect to pay the balance over time.
The healthcare provider said in a release that it has already begun enrolling hundreds of patients in the program each month.
During the initial rollout, Geisinger said the vast majority – 82% of patients – enrolled in the program after receiving a customized monthly payment plan. The average monthly payment was $52.
WHY THIS MATTERS
Geisinger is PayZen's first major healthcare partner, and the announcement comes as health systems are increasingly turning to technologies like AI, machine learning and robotic process automation to make substantial improvements in the healthcare revenue cycle.
Unpaid healthcare bills are one of the largest sources of debt for Americans, and reached $140 billion last year, nearly double the amount previously thought, according to a recent study published in JAMA.
On average, uncompensated care equates to approximately 8% of a hospital's expenses, according to Definitive Healthcare.
THE LARGER TREND
Two-thirds of hospital and health system executives report using AI in some revenue cycle capacity, and nearly all expect to be using it within three years, according to a January study by Change Healthcare.
The nationwide survey of healthcare executives found that among the two-thirds of hospitals currently using AI in the revenue cycle, driving patient and payer payments (83%) and cash flow (80%) are the most-cited improvements.
However, a number of concerns and roadblocks, from privacy concerns to budgetary barriers, are slowing the pace of AI adoption for RCM applications.
ON THE RECORD
"Everything we do at Geisinger is done in an effort to make better health easier for our patients, members and communities," said Robert Dewar, chief revenue officer at Geisinger.
"This includes making it simpler to afford and pay medical bills with no-interest plans on friendly, customizable terms. We understand that everyone's financial situations are different and it's our obligation to make sure our patients don't avoid or put off necessary care for financial reasons."
