Understanding Healthcare Payment Options: Self-Pay, Third Parties, and Bad Debt - Essay Sample

Introduction

In the United States, patients pay for their healthcare bills in several ways. They may pay privately for their healthcare; it may be through charity, a third party such as insurance and it can also be bad debt (Nowicki, 2018). A patient decides how they will pay for as they deem fit. Nevertheless, a healthcare provider should disclose all the costs that will be involved. For instance, self-pay may seem favorable to the client because the healthcare organization might discount the patient if they pay costs in full and on time. As such, the healthcare organization must disclose other factors involved, such as finance charges so as not to manipulate the client. With such measures in place, the customers will always be able to afford their desired type of care.

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What happens if they cannot or refuse to pay?

If clients cannot pay for healthcare, healthcare institutions might do follow up, such as sending emails to these clients to compel them to pay. In the extreme, these organizations might act by reporting these patients to a collection agency (Nowicki, 2018). In some cases, organizations count it as bad debt and opt not to follow these clients.

What happens if they cannot or refuse to pay?

It is a hot topic of debate on whether organizations might dent clients care. From a legal perspective, the law allows providers to deny patients care if they fail to pay for it unless it is an emergency (Nowicki, 2018). However, in my opinion, human health should always be prioritized overpayments (Consolver & Phillips, 2014). Furthermore, it is not always clear what is an emergency case, yet no patient chooses to be in an illness situation.

What is the ethical solution?

In as much as it is ethical to provide patients with care, it is also inherent for healthcare institutions to have the financial capacity to offer these services. It would be ethical if these institutions provide care even for those who are unable to pay for it. Consequently, they should focus on other ways of minimizing costs to have more capital to offer care services instead of pressuring clients, even going to the extreme of denying them care (Kolakowski, 2016). For instance, they can minimize management costs and channel the funds to patients' care. Consequently, they must harmonize all revenue sources (Johnson-Carlson, Costanzo & Kopetsky, 2017). This means that a healthcare organization will be in control over their revenue cycles.

References

Consolver, P., & Phillips, S. (2014). Enhancing the revenue cycle experience for patients. Healthcare Financial Management: Journal of the Healthcare Financial Management Association, 68(9), 72-4. Retrieved from http:// www.tracecommunication.com/wp-content/uploads/ 2014/09/ Enhancing-the-Revenue-Cycle_0914_HFM_ Consolver_web.pdf

Kolakowski, D. (2016). Constructing a nursing budget using a patient classification system. Nursing Management, 47(2), 14-16. Retrieved https://journals.lww.com/nursingmanagement/Citation/2016/02000/Constructing_a_nursing _budget_using_a_patient.5.aspx

Johnson-Carlson, P., Costanzo, C., & Kopetsky, D. (2017). Predictive staffing simulation model methodology. Nursing Economics, 35(4), 161. Retrieved from https://search.proquest.com/docview/1929679539/fulltextPDF/673258BA4C A44817PQ/1?accountid=7139

Nowicki, M. (2018). Introduction to the financial management of healthcare organizations (7th ed.). Chicago, Illinois: Health Administration Press