How to Clearly Communicate the Cost of Care to Your Patients
Kristi Hudson
..."Once a patient agrees to a treatment plan, the doctor must obtain permission from the patient to discuss money"...
For almost a decade, practice consultants and speakers within the chiropractic profession have preached the importance of having a formal financial report of findings (FROF) with patients. For those who took steps to incorporate a FROF into their practice, you may already be meeting part of the requirements of the No Surprises Act (CMS, 2022) that went into effect on January 1, 2022. It requires providers to clearly communicate the cost of care to patients. If not, implementing a FROF in your practice is a great way to meet that requirement while keeping patients happy, improving clinical outcomes, and enhancing collections by clearly and openly discussing your fees and payment policy upfront.
With rising healthcare costs, we want patients to have the peace of mind to make treatment decisions based on what they need and not their finances. To do that, we have to address their concerns about out-of-pocket costs. Some are well versed when talking about money with our patients, while some feel uncomfortable and do their best to avoid the subject. However, when you fail to address a patient's financial obligations to your office, it could lead to patient dropout, disputes, complaints to state boards, and even frivolous malpractice claim reports.
The treatment plan and financial agreement should be prepared in advance and outlined in a compliant document, ready to present to patients before they come in for the report of findings. Doctors must do their job with the report of findings by outlining
their recommendations for care and getting the patient to agree to the treatment plan. Once a patient agrees to a treatment plan, the doctor must obtain permission from the patient to discuss money, so you avoid creating the "here-comes-the-sales-pitch" feeling. This feeling can be easily handled with good communication. (Jensen, How to Do a Proper Financial Report of Findings, 2018)
Holly Jensen wrote one of the best articles I have read on presenting a FROF in the February 2021 issue of The Chiropractic Assistant. (Jensen, 2021) I encourage you to read it. She gives steps for how the conversation should flow and provides examples of what a great FROF looks like. Additionally, she discusses two things that I believe take your practice to the next level.
The first is having affordable payment options. Orthodontists have successfully used this technique for years. Dr. Foxworth loves to tell the story of when he walked into an orthodontist's office with his sons and walked out 30 minutes later with an affordable payment plan for over $7,000 in orthodontia. The staff clearly explained the need for care and its cost and gave him an affordable payment option. He never thought twice about the total expense because the monthly payment fit his budget. (ChiroHealthUSA, n.d.)
The second is auto-debit. Using auto-debit cuts costs and even improves efficiency when you mail fewer paper statements. Payments automatically process, whether it's a holiday, weekend, or you're on vacation. It frees up time at the front desk and improves collections.
The key to successfully keeping your patients in care is showing the need for care, having a treatment plan, and keeping care affordable. The purpose of the No Surprises Act is to prevent patients from receiving surprise medical bills. It will also help you improve patient retention, increase care compliance, and you will increase revenue. It's a win-win for you and your patients.
Kristi Hudson is a certified professional compliance officer (CPCO). She serves as the Director of Business Relationships for ChiroHealthUSA where she has helped to educate DCs and CAs on establishing simple and compliant financial policies. You can contact Kristi at 888719-9990 or [email protected], or you can visit the ChiroHealthUSA website at www.chirohealthusa.com.
References
1. ChiroHealthUSA. (n.d.). Financial Report of Findings. Retrieved from ChiroHealthUSA: https://www.chirohealthusa.com/frof/
2. CMS. (2022, February 3). Overview of rules & fact sheets. Retrieved from Centers for Medicare & Medicaid Services: https://www.cms.gov/nosurprises/Policies-and-Resources/Overview-of-rules-fact-sheets
3. Jensen, H. (2018, December 13). How to Do a Proper Financial Report of Findings. Retrieved from Cash Practice: https://www.cashpractice.com/how-to-do-a-proper-financial-report-of-findings/
4. Jensen, H. (2021, February 1). The Financial Report of Findings. The Chiropractic Assistant, pp. 10, 12.
