Healthcare organizations have tapped AI to improve diagnostics and the delivery of care, and now they’re using it to help patients development payment plans for services rendered.
Pennsylvania-based Geisinger recently partnered with fintech startup PayZen on what it’s calling the first AI-backed financing solution that creates customized billing solutions to help patients more easily afford out-of-pocket medical expenses within their personal budgets. Patients with out-of-pocket balances of more than $250 after insurance can choose customized payment plans offered at no fees or interest.
"Everything we do at Geisinger is done in an effort to make better health easier for our patients, members and communities. This includes making it simpler to afford and pay medical bills with no-interest plans on friendly, customizable terms," said Robert Dewar, chief revenue officer at Geisinger in a statement. "We understand that everyone's financial situations are different and it's our obligation to make sure our patients don't avoid or put off necessary care for financial reasons.”
Under the program, patients receiving Geisinger bills for out-of-pocket expenses will be invited to pay the bill in one lump sum, or over many months, on a timeline that works for their personal financial situation. If they elect to pay their balance over time, they can choose from several customized payment plans, all without fees or interest.
Working with PayZen, Geisinger introduced a pilot last fall in one of the provider’s service regions before eventually expanding systemwide. Patients who were offered payment plans during the pilot paid an average of $52 a month. Of those offered the program, 82% of them enrolled.
"Out of pocket medical bills can put a strain on any patient's household budget. PayZen seeks to address that strain with technology that allows us to customize payment plans that meet whatever a patient's budget requires," said Itzik Cohen, PayZen CEO and co-founder. "Geisinger is an early adopter of this technology that has the potential to revolutionize health care payments to better meet the needs of patients.”
According to reports, an AI-based algorithm analyzes more than 30,000 patient finance data to determine how much they are able to pay monthly. Patients now can complete payments in 60 months instead of the traditional timeframe of 12 to 18 months. That information is merged with provider data to adjust payments based on the likelihood patients will need additional treatment in the future.
"The medical payment is shifting dramatically to the patient," Cohen said. "We looked at this market and felt the 'buy now, pay later' approach for healthcare needs to happen."
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