AHA endorses updated patient billing, collection procedures

Last week, a number of major national hospital organizations, such as the American Hospital Association (AHA), lent their support to the recently updated Statement of Principles and Guidelines on practices that hospitals should follow in regards to billing and collection, which incorporate patient-friendly billing practices.

While the guidelines were originally issued in 2003 after being approved by the AHA Board of Trustees, the Board recently reviewed and updated the guidelines because some of its original voluntary tenets were incorporated into the Patient Protection and Affordable Care Act (ACA) for some hospitals, including a number of provisions that apply specifically to tax-exempt hospitals.

[See also: AHA and other health groups urge Congressional action on Medicare policies]

In addition to the AHA, the updated guidelines were adopted by the Association of American Medical Colleges, Catholic Health Association of the United States, Children's Hospital Association, Federation of American Hospitals, Healthcare Financial Management Association and the National Association of Public Hospitals and Health Systems.

Some of the new guidelines have to do with communicating effectively with patients, including providing financial counseling to patients about their hospital bills and should make the availability of such counseling widely known. Other new guidelines urge hospitals to help patients qualify for financial assistance, such as communicating this information to patients in a way that is easy to understand, culturally appropriate, and in the most prevalent languages used in their communities.

One example of an updated guideline that is also an ACA provision is that hospitals should have a written collections policy that includes the actions that may be taken in the event of nonpayment and ensures that reasonable efforts are made to determine whether an individual is eligible for financial assistance before undertaking significant collections actions.

In a statement of support, the groups involved advise hospitals to adapt the updated guidelines to the needs and expectations of their communities, and to state and local requirements.

[See also: AHA calls for changes to inpatient psychiatric facility payments]

"America's hospitals are committed to doing everything possible to better serve patients and to treat them equitably, with dignity, compassion and respect from the bedside to the billing office. These guidelines reflect that commitment and demonstrate the shared partnership/responsibility between hospitals and patients to address billing issues in a timely, transparent and forthright manner," according to an AHA member advisory.

[See also: AHA charges CMS rules changes will cost $25 billion]