Every year, health systems and patients face the same frustrating cycle: January: Patients are hit with high out-of-pocket costs and often delay care; mid-year: Medical debt accumulates, and financial stress mounts; end-of-year: Deductibles are finally met, and patients rush to book appointments, overloading health systems.
Does this sound familiar? It’s a cycle that puts immense strain on patients and providers, and I’ve heard from numerous health system partners and prospects that they’re feeling the strain at an even greater level than in previous years.
But what if we could break it?
Financial Realities: The Patient Experience Isn’t Just About Care
Too often, patient-experience conversations focus only on clinical care. But financial well-being is just as important. The reality? A positive patient experience comes down to two key factors: 1. Quality of clinical care (Did the patient get the proper treatment?) 2. Financial experience (Could the patient afford it?)
A great experience isn’t just about outcomes—it’s about ensuring patients understand their costs and have a way to pay for them. Based off of decades of experience working in healthcare, my team and I came up with the following equation for demonstrating the complete patient experience:
Px = PCx + (Pfx * Pfh)
When patients struggle financially, they often avoid care, leading to worse health outcomes and increased bad debt for providers. Fortunately, health systems have the power to change this.
Three Ways Health Systems Can Break the Cycle
A Sustainable Future for Patients & Providers
Breaking the financial cycle in healthcare isn’t just about improving collections—it’s about building trust and making healthcare more accessible for all.
Patients deserve to get care when they need it, not when their deductible resets. Health systems prioritizing financial well-being will see stronger patient relationships, reduced bad debt, and a more sustainable future.