Why Compliance Should Be a Top Priority for Providers in 2024

In the ever-changing world of healthcare financing regulations, keeping on top of constant changes is crucial for providers. Our recent webinar, “Zero-Interest Patient Financing under Changing Legislation: Boosting Financial Wellness for All,” shed light on the paramount significance of regulatory compliance, both now and in the upcoming year.

During the webinar, CarePayment experts navigated the medical debt crisis, explored existing and impending legislation, and outlined how compliant solutions could be the innovative answer providers have been seeking. Compliance stands as one of the most pressing issues in healthcare finance today, and its importance is set to persist. Here are three reasons why providers should prioritize compliance:

1. Sidestep Unnecessary Non-Compliance Hurdles

Federal and state regulatory bodies have initiated legislation requiring providers to establish guidelines concerning various aspects of healthcare financing, encompassing interest rates, grace periods, patient screenings, and payment plans. Over the past two years, nearly a dozen states have taken decisive legislative actions, enacting laws to protect their residents from the severe consequences of medical debt.

Noncompliance can lead to severe consequences, including fines, legal penalties, and litigation. These outcomes not only tarnish providers’ reputations but also jeopardize their financial stability. By staying well-informed about the latest regulatory updates,  providers can shield themselves from the pitfalls of non-compliance.

2. Preserve Patient Trust and Reputation

Apart from the financial and legal repercussions, neglecting compliance can harm the reputation of hospitals and health systems in the eyes of patients. Building and maintaining patient trust is essential for effective healthcare delivery and better patient outcomes.

Some providers have leaned on medical credit cards, marketed as “no-interest” solutions, only to have their patients confronted with predatory deferred interest charges. Such misleading practices result in confusion, missed payments, and unexpectedly high-interest rates—all of which reflect negatively on the provider who endorsed these solutions. Providers bear a responsibility to stay informed about regulatory actions, such as increased scrutiny from entities like the CFPB, HHS, and the Department of the Treasury on medical credit cards.

This knowledge enables them to make informed decisions about the solutions they offer patients. When patients perceive that their provider cares not only for their physical health but also their financial well-being by staying attuned to regulatory trends and offering compliant, compassionate solutions, they respond with loyalty and trust.

3. Enhance Patient Satisfaction in a Patient-Centric Industry

As the healthcare industry pivots toward greater patient-centricity, providers must meet higher standards to ensure patient needs are met and satisfaction remains high. Bill payment is often one of the most tedious and confusing aspects of receiving healthcare. Transparent communication regarding costs, payment options, and terms fosters clarity and minimizes confusion. When patients comprehend their financial obligations and have access to empathetic financing solutions, they are more likely to engage positively with the provider, resulting in heightened patient satisfaction.

By staying well-informed about the latest regulatory trends, partnering with patient-centric financing solutions, and prioritizing patient satisfaction, providers can effectively navigate the evolving landscape and contribute to a healthcare industry that genuinely centers around patient needs.

For deeper insights and recommendations from the webinar, watch the full recording here.