The idea of "going green" – running a business in a more sustainable, environmentally friendly manner – has immediate appeal for financial managers at most hospitals, large physician practices and other healthcare providers.
After all, who would argue against operating a business in a way that does minimal harm to our planet's ecosystem? Going green helps healthcare organizations enhance their public relations and improve their image, making them a more attractive vendor, partner and corporate citizen.
However, many healthcare providers are reluctant to make the often-significant investments of time and money to become environmentally friendly for two reasons: (1) they wonder if being a "green" organization will help attract patients and not just improve their image; and (2) they doubt the ROI of green practices.
Now, recent research and commentary about going green indicates consumers are embracing organizations that operate in environmentally sustainable ways and that offer products and services that can be accessed using new technologies. For example, a recent study by Javelin Research found that 94 percent of Americans have indicated they are willing to make lifestyle changes to help reduce environmental impact.
Going green via email communications
The Javelin Research study is just one of the latest encouraging signs for healthcare organizations seeking to accelerate their revenue cycles by reducing the mailing of patient statements by presenting, delivering and storing statements and accepting their payment – electronically. Research shows that consumers not only are comfortable paying bills online through email, many expect this option and prefer it.
Two 2010 Pew Research Center research studies highlight the preference of today's consumer for using email in their dealings with financial and other services organizations. Among these findings:
• 94 percent of adults online use email.
• Among American users of mobile communications technology (e.g., iPhone, Android, BlackBerry PlayBook, iPad), 38.5 percent of Internet-supported mobile activity was through email.
• 74 percent of adults online say email is their preferred method of communications with businesses.
As for the financial benefits of the electronic presentation, delivery, storage and payment of patient statements, a host of recent commentary sheds light on the potential ROI of electronic communications with patients.
According to the Institute of Management and Administration, the true average cost to generate and deliver a paper bill (including an internal file copy) ranges from $3 to $5. And in its Q2 2010 Invoice Automation Benchmarking Report, PayStream Advisors found the average cost of processing a paper-based payment to be $13.58 and significantly greater in cases requiring dispute resolution.
In its white paper, "Electronic Bill Presentment and Payment: A Strategic Advantage," IBM Global Services notes that "Many companies report saving between one-third to nearly one-half of the current costs of printing and mailing bills or statements and collecting paper payments" when they switch to electronic bill presentment and payment systems.
Many electronic solutions have proven to be highly efficient and powerful platforms for electronic presentation, delivery and storage of statements, letters and notices – and for their payment through secure online provider portals. Such solutions, in many instances, can help healthcare providers reduce CRM costs, boost patient retention and enhance business operations and image in the following ways:
• Flexible print and electronic delivery options from a single client-supplied data feed. An exact electronic replica of printed documents can be presented via HTML or PDF. These interactive documents can feature personalized messages, dynamic graphics and customized cross-selling opportunities.
• Automated email notifications. Notify end users via email whenever a new electronic document is available for viewing.
• Fast, one-click access. Patients retrieve electronic documents from their inbox without visiting a website or logging in.
• Convenient electronic bill payment. Patients can be given the choice to pay online using a credit card, debit card or ACH.
• Low start-up costs. Electronic solutions are often available as a web service, so there is no software or infrastructure to purchase. Pay-per-use pricing, when available, can eliminate any risk.
• Significant savings. Using electronic documents can produce a significant reduction in printing and postage costs and save paper, too.
• Mobile ready. Most electronic documents are viewable on mobile devices.
• "Green" benefits. Reduce huge amounts of paper from the billing process.
For healthcare providers, the lesson to be learned is that solutions such as electronic statements, letters, notices and payments are increasingly being accepted – even preferred – by healthcare consumers, and that going green, through a variety of strategies, can provide an ongoing, sustainable ROI.
Mark Snow is chief marketing officer for the PSC Info Group, a provider of technology-enabled solutions to streamline the collection of consumer payments.