When it comes to healthcare, one of the most pressing challenges for both providers and patients is understanding costs. Patients often feel frustrated and blindsided by unexpected bills after receiving care. Meanwhile, healthcare providers face the dual problem of managing revenue leakage and maintaining patient trust.
With cost transparency, patient frustration can not only be alleviated but also patient retention and revenue cycle management are optimized.
This blog explores why cost transparency is making waves, how it can help retain patients and how solutions like Artera Intake & Payments make it easier for providers to offer visibility into costs and streamline payments for better revenue capture.
The Problem with Hidden Healthcare Costs
It’s no secret that lack of price transparency has been a long-standing issue in the healthcare industry. According to research, 40% of patients are likely to cancel or delay care if they don’t receive a clear cost estimate beforehand. Additionally, nearly half claim they would consider switching providers for better upfront cost information.
Here’s why hidden costs cause friction for both patients and providers:
- Patient Frustration:
- No one likes financial surprises. Patients often don’t know the full financial responsibility for services until after receiving care, leading to missed payments, lost trust and even delays in scheduling.
- Revenue Cycle Bottlenecks:
- Hidden costs increase the chances of claim denials and slow down payments. Providers often rely on time-consuming follow-ups for collections, adding unnecessary administrative burdens.
- Compliance Challenges:
- Regulations like the No Surprises Act emphasize the need for clear cost disclosures, penalizing organizations that fail to offer estimates.
Patients increasingly want a consumer-like experience when interacting with healthcare providers—just as they’re accustomed to in other industries. That’s where healthcare cost transparency becomes a breakthrough for providers.
How Cost Transparency Builds Patient Retention
Providing clear, upfront pricing isn’t just a compliance measure—it’s a competitive advantage. Transparent pricing fosters trust and encourages patients to remain loyal even in the face of rising costs. Here’s how it boosts retention:
1. Earns Trust Through Clarity
Patients are more likely to choose providers that deliver clear, realistic estimates of out-of-pocket costs before services are rendered. Transparent communication demonstrates that a provider values the patient’s time and finances, building lasting trust.
2. Improves Patient Satisfaction
A 2024 study suggests that 94% of Americans value knowing their costs upfront. Cost transparency significantly reduces anxiety surrounding unexpected bills. This leads to a more positive overall experience, which can translate into repeat visits and word-of-mouth referrals.
3. Lowers Appointment Cancellations
When patients are uncertain about the financial implications of healthcare services, it often results in delays or outright cancellations. By offering visibility into costs, providers can reduce missed appointments and improve operational efficiency.
4. Enhances Payment Flexibility
Transparency helps patients understand their financial responsibilities and enables them to plan payments accordingly. This creates a smoother billing process, increasing the likelihood of on-time payments and reducing reliance on collections.
By committing to cost transparency, healthcare organizations can fundamentally alter the patient-provider relationship, elevating patient loyalty and positioning themselves as trusted healthcare partners.
Some patients say they’ve been able to make price transparency work for them. Theresa Schmotzer, 50, of Goodyear, Arizona, said she used hospital price data to save nearly $3,000 on outpatient surgery to have a fibroid removed in 2024. Schmotzer, who has health insurance, said the hospital first told her she would owe $3,700 for the procedure and wanted the payment upfront. But she was skeptical. The morning of the surgery, Schmotzer found a spreadsheet online at PatientRightsAdvocate.org that included different prices paid by insurers, including hers. The reported price for the procedure was closer to $700, rather than the $3,700 she was first told.
Artera Intake & Payments Brings Cost Transparency to Life
Solutions like Artera Intake & Payments make it easier than ever for providers to implement cost transparency at every step of the patient’s care cycle. This modern platform not only improves patient satisfaction but also enables organizations to optimize revenue capture. Here’s how it works:
Pre-Visit Cost Transparency
Before the patient even visits the clinic, Artera helps secure accurate insurance verification and clear cost estimates through automated digital tools. This allows patients to fully understand their co-pays, deductibles and payment responsibilities upfront, so there are no surprises when it’s time to pay.
With features like automated reminders and pre-payment options, healthcare organizations can start the revenue capture process earlier, reducing the likelihood of payment delays.
Real-Time Cost Visibility During the Visit
At the point of care, Artera ensures continued cost transparency with real-time insurance verification and eligibility checks. Patients can receive updated cost information on-site and have the flexibility to make payments digitally—even completing unfinished pre-appointment forms.
This seamless integration of payment systems allows staff to focus on providing care rather than spending precious time resolving billing questions.
Post-Visit Billing Transparency
After the visit, Artera makes it simple for patients to pay remaining balances with automated billing reminders sent via email or text message. This ensures that patients have all the necessary details to make payments conveniently, improving payment completion rates.
Key benefits for healthcare providers include:
- Reduced Claim Denials:
- Accurate insurance verification minimizes the risk of payment delays due to inaccurate coding or eligibility issues.
- Faster Revenue Capture:
- With payment collection moved upstream, organizations can significantly shorten their revenue cycle timelines.
- Enhanced Patient Loyalty:
- Transparent communication fosters trust, ensuring that patients return for future care rather than choosing competitors.
Real-World Impact of Artera Intake & Payments
- 85% shorter check-in times compared to manual paper forms, enabling patients to focus on their care rather than the administrative hassle.
- 87% of patients opt to save cards on file for easy automated payments, simplifying the post-visit billing process.
- $500k saved by one customer due to reductions in overdue collections—a clear example of translating cost transparency into a financial advantage.
Deliver Cost Transparency to See the Change
Healthcare is rapidly evolving to meet the expectations of today’s consumers. Patients increasingly demand clarity, speed and ease when it comes to their interactions with providers. Cost transparency isn’t just a feature; it’s a necessity for any organization looking to thrive in a competitive healthcare landscape.
By adopting tools like Artera Intake & Payments, healthcare providers can:
- Capture more revenue earlier in the patient care process, improving cash flow and reducing time lost to collections.
- Build deeper patient trust by providing upfront cost estimates that improve engagement and satisfaction.
- Empower their staff with modern digital tools that reduce inefficiencies in insurance verification, payments, and billing.
Actionable Steps for Providers
Your next step is critical but simple. Patients are actively seeking consumer-friendly healthcare experiences, and cost transparency ranks high on their list of priorities.
Explore how Artera Intake & Payments can transform your organization’s approach to cost transparency, patient retention and revenue capture. Book a demo today and experience the future of patient engagement.
