Rising healthcare costs and declining revolving credit lines are putting growing financial burdens on patients. See what these findings mean for patients and healthcare providers—and get recommended solutions.Get the Study
TransUnion Healthcare’s proprietary ratio, which compares available revolving credit to select healthcare costs, declined to 17.2 to 1 in Q1 2016. The ratio means that for every $100 in healthcare costs, consumers had $1,720 in revolving credit to potentially make those payments at the end of March 2016. Just one year prior, consumers had $2,250 in revolving credit for medical costs as the ratio stood at 22.5 to 1 in Q1 2015.
TransUnion’s analysis found that patients in the subprime risk tier, generally the highest-risk consumers with a VantageScore 3.0 of 600 or below, are in an even more perilous position. As of Q1 2016, these patients only had $420 in revolving credit for every $100 in healthcare costs. In Q1 2015, these same patients had $600.
– Gerry McCarthy, president of TransUnion Healthcare
With millions of dollars of unpaid medical bills, many hospitals are instituting new processes to recover monies owed to them, including:
TransUnion Healthcare’s insurance discovery solution, eScan, has helped hospitals, health systems and physician offices recover more than $1.2 billion in insurance payments. Previously, hospitals would have categorized this money as bad debt or charity care, which are known as uncompensated care.