3 Hidden Financial Benefits of Patient Engagement
Patient engagement is a cornerstone of high-quality care. Numerous studies have shown that patients who are actively involved in their own care and participate in the healthcare decision- making process tend to be healthier.
Those healthcare organizations that take steps to cultivate patient engagement achieve better health outcomes and patient satisfaction while lowering costs of care.
Not only does an effective patient engagement strategy drive better care, it also leads to other – often unrecognized – benefits that positively impact your organization’s bottom line.
Healthcare providers who engage their patients improve the care experience, which helps build long-term patient relationships. Establishing a loyal patient base means your patients are more likely to return, which will reduce your attrition rate and directly impact the bottom line. In fact, a classic research study done by Bain & Company that looked at a wide range of service industries found that increasing consumer retention rates boosts profits by anywhere from 25% to 85%.
Loyal patients are also more likely to share their positive experiences online. And with 72 percent of patients reporting that they use online provider reviews to find a new provider, fostering patient loyalty will help you attract new patients and earn more revenue.
Patients who are not engaged in their healthcare are two times as likely as engaged patients to delay medical care. They also tend to be less compliant with prescribed care and fail to show up for medical appointments. This lack of follow-through places a significant financial strain on the healthcare system.
Putting off needed care can lead to the development of medical conditions that require hospitalization and costly treatments. Studies have shown that the cost of medication non-compliance alone costs the U.S. healthcare system between $100-$289 billion in direct costs every year. And appointment no-shows cost providers an estimated $150 billion per year.
By developing an engagement strategy that encourages patients to follow through with their care, you can drive higher profitability in your organization.
As value-based care has taken a stronger foothold over the past decade, numerous healthcare care models and programs have evolved to reward healthcare providers based on quality of care. The recognition that patient engagement is a crucial element of high-quality care has fueled the development of financial incentives (and penalties) based on how well organizations are engaging their patient populations.
The reporting criteria of many programs include regulations and metrics that reward patient engagement with the healthcare system. These regulatory programs include:
- Medicare Access and CHIP Reauthorization Act (MACRA)
- Merit-Based Incentive Payment System (MIPS)
- Promoting Interoperability Programs
- Physician Quality Reporting System (PQRS)
- Patient-Centered Medical Home (PCMH)
- Chronic Care Management (CCM)
In today’s value-based regulatory environment, you can significantly improve your bottom line by implementing approaches that advance patient engagement.
To discover how you can execute a highly effective patient engagement strategy that brings your organization greater financial returns, download our eBook, “A Digital Engagement Approach to Driving Value-Based Care.”