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Medical Debts: The Biggest Issue in Healthcare RCM

Healthcare is witnessing a change in the way things are approached but one major problem. This still needs to be addressed is the medical debts that are still in the pockets of Americans.

Poor management and improper understanding of medical billing is the reason behind the debts in the hands of patients. Despite having different insurance plans and outsourcing medical bills in organizations. These are working day and night for smooth run operations of RCM in healthcare, still people are having high debts. This needs immediate reaction and action for the betterment of all.

This article will give an idea about the influence of medical debts in reforming rules.

The causes for these challenges

We always make the wrong decision but when we turn back and see the reason would be a misunderstanding. With the arrival and reformation of the consumer protection act of 2010, which is implemented with the main motive to protect consumers from unfair practices related to finances and collections.

But still, the challenges faced by consumers continue to persist. The consumer financial protection bureau made a study on these challenges faced by the consumers and came up with a conclusion. That the main problem faced by many concerning medical debts is a lack of awareness and knowledge of them. The complexities that are involved with medical billing audit which make it difficult in understanding the same. Also, CFPB insisted the consequences of these medical debts on consumers are not good for the future as it is more likely to be subjected to misconduct.

CFPB’s involvement to reduce medical debts

To make this workflow more established, CFPB has revised rules. Implemented strict regulations for cash collectors, and creditors to maintain precise data regarding medical debts. It is also important to note that they had taken action against agencies. That fail to provide accurate debt data and made violations or companies that received accusations. To deplete this issue the number of revisal’s and analyses taken in hand by CFPB is numerous.

To reduce fraudulent act

Have you ever thought like this that being involved in small theft is not a big deal, but imagine the same theft is done to many? Then the amount will be large and theft will also be more. Similar to that one more issue to be addressed is that some companies that are involved in misconduct by collecting increased revenue. To minimize this the bureau had made revised rules. These are bulletins for collection agencies who are involved in this unfair means will be facing legal consequences under the fair debt collection practice act.

As an important note, the current practices and procedures in medical debt collections are not pertinent. Many organizations use a threat call for collecting amounts that are not subjected to the patients due. This alarming report made by many patients is the reason for these changes in the approaches of different regulations.

Make a convenient credit reporting system

One more problem addressed by the bureau is the confusion that prolongs with the creditors. The inclusion of unpaid medical debts in the credit reporting system, which creates unnecessary confusion among creditors.

Following this issue, one succeeding factor to look upon is some nationwide consumer reporting agencies have made measures on their approaches to submitting their report for medical debts. This enables more accurate analysis and eliminates issues with the improper management of data. But every big thing needs a small step. Yes, these minor changes might not completely eradicate the root problems involved in medical debt collection. But with these approaches, there is this high possibility and assurance that a new focus is being created for a smooth consumer experience.

Recent reform from the white house

The shifting focus to address these issues of medical debts is not only giving a fortunate future, but the present is also moving for a change. One such instance that is seen is the reforms made by the present government. The recent order issued by the white house directs to provide more substantial importance for the protection of patients from unfair means, by the improper medical billing services.

For the future reforms

With regard to this, to make healthcare more affordable to common people, the department of health services is working to identify and eliminate the difficulties in practices that are responsible for the exploitation of the dollars of the consumer.

To facilitate this they are in the process of collecting data from over 1000+ organizations on how they collect medical debts and billing procedures. These companies will get recommendations from the health department on how to improvise the procedures that would minimize the risk factors involved with medical debts. This also enables to make of revised policies for the improvement of billing.

Future for reformations

The recent debt collection act enabled the prohibition of collection of medical debts after two year period from the time of service rendered. One promising thing to note is that several states are making reforms and regulations that are protecting the rights of consumers from the exploitation of medical debts by making changes in RCM.

There are also speculations on interest rates for these debts. Many states had made procedures to collect them with advice on time framework. There is also approaches to streamline medical billing audit services that makes error free results and gives authentication in clinical documentation. Being aware of these will help you escape from medical debts.

Role of healthcare in standardizing the patient experience

With the concerns on medical debts that are giving headaches to patients. Healthcare institutions are in the need to re-examine the practice they are making in billing and collection procedures. Patient experience is of vital importance than all other areas in healthcare. Under this billing practice will affect the patients directly. If a comprehensive way that makes comfortable billing is not optimized, then you need to work on these in your organization.

One way to achieve this is by making transparent solutions, which include providing information to the patients about the costs. Other service charges clearly, including the collection time and procedures you follow. One option to do this is to outsource medical billing services in order to produce conclusive results.

Strategies you can utilize for improving the patient experience

By keeping in mind these complexities you can make essential utilization of automation in your RCM services. Foremost essential for a patient is receiving an appropriate bill for the service. So, optimize technology in your system that can provide bills to patients. Which can be accessed any time during or after the practice service. This allows them judge their own capabilities and come up with ideas according to their financial sustainability.

As a healthcare institution, it’s your sole responsibility to streamline the billing along with patient care. So have a team who are involved in addressing necessary changes to your automation. Technology developments that assist in implementing the rules in your service along with comfort ability.


With the complexities discussed yet, we need to make essential strategies that would downturn the complications for the betterment of patients. Medical debts are a major concern for practices, patients, and the government, so this makes the need to address this problem. Financial repercussions are unavoidable if your make mistakes and so only option for you is to reduce the same.

Consider outsourcing medical billing with Practolytics if you find it difficult to understand the intricacies involved. We provide services at the highest level.

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