How to Reduce Waste in Your Health System by Tackling No-shows
Blog post for Operations
You’ve seen it time and time again—the patient schedules an appointment, your provider waits for them a few minutes past the appointment start time, the patient doesn’t show up at all. No text, no call. It isn’t just a poor experience for the doctor involved — it’s hurting the health system’s bottom line.
It’s no secret that hospitals and health systems across the nation are having issues with profitability. A large part of this equation has to do with keeping costs down. While you can’t just choose not to invest in your infrastructure, technology, or your people — something you can control is the money lost by no-show appointments. These no-show appointments are a colossal waste that lurks in your scheduling process and is estimated to cause the healthcare industry an estimated $150billion in losses each year.
What is a no-show appointment?
A no-show appointment is an appointment that a patient 1) makes with a provider; 2) fails to arrive at; 3) does not cancel before the time of the appointment. These are different than cancellations. In a cancellation, the patient reaches out to the provider before the appointment, giving the provider sufficient time to fill the slot with another patient.
Why are no-shows so wasteful?
With cancellations, there is an opportunity to schedule another patient in the canceled time slot. Usually, the window that you have to fill these canceled appointments will be as short as 24 hours but can be as long as three weeks. We call this the replacement window because this is the amount of time that you have to replace the canceled appointment with a new patient. In a no-show, the replacement window is zero, which is why you cannot get your money back. These no-shows translate to lost revenues which hurt your health system’s bottom line. By allowing your health system to continue this wasteful process systematically, you are undermining its profitability.
What tools exist for reducing these wasteful no-show appointments?
Fortunately, there are a few different approaches and tools at your disposal for tackling no-show appointments. The first approach is the old-fashioned punish and reward system. It goes like this: financially punishing no-shows while rewarding (either through a small discount on their bill or another incentive like a sweepstakes drawing) patients who show up on time. However, this carrot-and-stick method isn’t enough to move the needle by itself. While you may limit the return of no-show patients, you aren’t increasing the replacement window or maximizing patient volume.
Thankfully there are technologies already on the market that are designed to reduce no-show appointments and maximize your replacement window. The most effective of these are digital, multi-channel appointment notifications. To appeal to a broader range of patient demographics, we recommend offering reminders via several media, including text message, email, and phone calls. To maximize the effectiveness of reminder notifications, they should include appointment confirmations with options to cancel or reschedule. Additionally, these notifications should have appointment reminders within 24 hours of the appointment start time, and any other information pertinent to the appointment. Examples include directions to the appointment location and appointment preparation procedures.
For additional engagement, some solutions like DocASAP’s Consumer Connect include a calendar appointment that can be saved to the patient’s schedule. Consumer Connect provides a mobile-first, patient-centric solution that helps not only with patient engagement, but also reduces no-show appointments. On average, DocASAP’s Consumer Connect solution, which includes DocASAP Reminders, cuts down the no-show rate by over 35% in the first year after deployment.
How online appointment scheduling maximizes the replacement window
If appointment reminders are a powerful way of reducing no-show appointments, then online appointment scheduling is its significant other, maximizing access which optimizes the replacement window. Think of it this way: you are now reducing your no-show appointments, but still have some patients who elect to cancel or reschedule. Online appointment scheduling, proven to expand patient access, increases the chance that another patient will be able to fill your empty timeslot. By expanding patient access, you can increase the likelihood that you fill empty slots in your provider’s schedule. This maximizes patient volume, which translates to money in the bank. Appointment reminders can truly work in tandem with online appointment scheduling to improve your health system’s bottom line.
To summarize, if you want an impactful reduction in no-show appointments, you need to use an appointment notification service that includes multiple notification types and mediums. To make further improvements, you need to maximize your replacement window by implementing intelligent online scheduling. Marrying reminders with online scheduling is one of the most impactful ways to start reducing waste in your health system — ASAP.