A study conducted by Informed Partners and the Boundary Information Group on behalf of Fifth Third Bank shows that providers are anticipating collection challenges as consumers increasingly pay out-of-pocket.

The past several years have shown a significant shift in the payment for healthcare services through higher co-pays and deductibles. This shift is creating challenges for healthcare providers as a financial burden of consumer (patient) debt falls to them, according to a research study funded by Fifth Third Bank. tHE bANK released a white paper today entitled "The Impact of Consumer Directed Healthcare on Providers."

Fifth Tthird Bank surveyed providers and thought leaders throughout the country as Consumer Directed Healthcare (CDH) rises. In addition, the research delves into how providers are reacting to this market movement in terms of enhanced processes and payment solutions.

"We understand that inefficiencies in the processing of healthcare payments exist today and that they will become a larger issue as CDH adoption rises," said Nav Ranjee, Vice President of Healthcare Solutions for Fifth Third Bank. "We conducted this research to determine what initiatives providers are pursuing to deal with this ccoming change."

The creation of CDH plans, such as Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHP's), have created a paradigm shift in how consumers pay for healthcare. The past year has seen rapid growth due to economic conditions, increased employer adoption and improved HSA/HDHP plan designs. Healthcare providers have now become even larger stakeholders in this new environment.

While the research indicates the impact of CDH varies geographically, the CDH momentum is building. All research participants agree they must adapt their people, processes and technologies or risk a negative cash flow impact.

"Banks are a key stakeholder in this new CDH marketplace," said Kevin Lavender, Senior Vice President and head of National Healthcare for Fifth Third Bank. "Providers will require sophisticated payment solutions to streamline their collection processes."

Other issues cited by research participants include: price transparency, lack of consumer HDHP understanding, undertrained front-line staff, outdated legacy systems, public relations sensitivity, inadequate payor communication and limited front-end payment tools.

Click here to obtain a copy of the White Paper entitled: "The Impact of CDH on Providers"