You’ve probably heard by now that credit-score provider VantageScore Solutions has announced it will stop factoring all medical debts that are in collections into its scores.
The company’s decision goes beyond a recent move by Equifax Inc., Experian PLC, and TransUnion to remove many medical collections from people’s credit reports. The three companies own VantageScore, which competes against Fair Isaac Corp., the creator of the more widely used FICO credit scores.
VantageScore’s decision comes after it found that medical collections are not good at predicting a person’s likelihood of repaying other debts, according to its CEO. The change is expected to take place in October 2022, where millions of people with medical debt in collections could see their scores increase by as much as 20 points.
More than 2,600 lenders and other financial institutions use these scores, so the impact will likely affect self-pay patient reimbursements for physicians nationwide. Physicians who educate patients about their medical bills with upfront cost estimates will not only help patients project and calculate what they will owe for their medical procedures but will also see more collections from their self-pay patients.
From traditional paper statements to online digital portals, giving patients multiple payment options also makes it easier for patients to pay their bills. Mobile convenience that gives patients the ability to pay their bills anytime, anywhere, or any way makes it easy for patients to engage and pay for their service. At the same time, it’s also important that physicians listen to patients and give them the same level of service they expect as consumers.
Ready to address the changes to credit reporting head on? Explore Zotec’s Patient Bill Care™ processes to see how you can address patient satisfaction around the healthcare financial experience.