Current situation

Based on the revenue data collected on the previous page, the fields below for uncollectable billings and collection expenses are prepopulated with estimated percentages for larger health systems. You can replace the assumed percentages to reflect your health system's actual data.

Noncollectable accounts receivable

What percentage of your annual patient responsibility revenue (what the patient is responsible for paying) is completely uncollectable billings?

Preset Assumption 10% uncollectable for physician office and outpatient services and 20% uncollectable for inpatient services.

• Physician Offices
• 10($10,000,000)
• • 5($10,000,000)
  • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)

• Outpatient Services
• 10($10,000,000)
• • 5($10,000,000)
  • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)

• Inpatient Services
• 20 ($10,000,000)
• • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)
  • 25($10,000,000)

What percentage of your annual patient responsibility revenue (what the patient is responsible for paying) is partially uncollectable billings?

Preset Assumption 10% are partially uncollectable with 75% of the balance paid.

• Physician Offices
• 10 ($2,500,000)
• • 5($10,000,000)
  • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)

• Outpatient Services
• 20 ($2,500,000)
• • 5($10,000,000)
  • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)

• Inpatient Services
• 10 ($2,500,000)
• • 10($10,000,000)
  • 15($10,000,000)
  • 20($10,000,000)
  • 25($10,000,000)

 

General purpose credit card fees (MC, VISA, AMEX, etc.)

What merchant fee are you paying for general purpose credit cards?

Preset Assumption Assumes 50% of inpatient and outpatient payments and 25% of physician practice payments are made with a general purpose credit card at a 2.25% merchant fee for non-CareCredit charges.

• Physician Offices
• 2.25($10,000,000)
• • 2($10,000,000)
  • 2.25($10,000,000)
  • 2.5($10,000,000)
  • 3($10,000,000)

• Outpatient Services
• 2.25($10,000,000)
• • 2($10,000,000)
  • 2.25($10,000,000)
  • 2.5($10,000,000)
  • 3($10,000,000)

• Inpatient Services
• 2.25($10,000,000)
• • 2($10,000,000)
  • 2.25($10,000,000)
  • 2.5($10,000,000)
  • 3($10,000,000)

 

Accounts receivable costs

What is your cost of money (percent interest) on unpaid receivables?

Preset Assumption Financial costs of unpaid receivables (carrying costs, interest, etc.) – assumes 3% of annual revenue.

• Physician Offices
• 3($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

• Outpatient Services
• 3($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

• Inpatient Services
• 3($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

What percentage of your patient responsibility receivables is the
cost of ongoing collections?

Preset Assumption Direct and indirect costs of factoring, collection agencies, internal collections staff and billing (invoices, postage, statements, etc.) – assumes 3% of annual revenue.

• Physician Offices
• 3($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

• Outpatient Services
• 3($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

• Inpatient Services
• 20% ($10,000,000)
• • 1($10,000,000)
  • 2($10,000,000)
  • 3($10,000,000)
  • 4($10,000,000)
  • 5($10,000,000)

 

With CareCredit

The fields below are prepopulated with estimated percentages for collections from current patients and incremental revenue from new patients to assess the potential financial impact of partnering with CareCredit. For some fields, you can replace the assumed percentages to reflect your health system’s actual data.

Current patients

Percentage of your current patient responsibility revenue still collected by the health system using your existing payment and collection methods (not CareCredit). This assumes the same collectability rate as your current out-of-pocket collections.

Preset Assumption Assumes the health system will still be responsible for collecting 90% of current revenue using traditional methods (not CareCredit).

• Physician Offices
• $5,000,000
• • $5,000,000

• Outpatient Services
• 20% $20,000,000
• • $5,000,000

• Inpatient Services
• $5,000,000
• • $5,000,000

What percentage of your current patient responsibility revenue will be collected using CareCredit? This includes patients shifting to pay with CareCredit and patients who are currently ‘uncollected’ now paying their bills with CareCredit.

Preset Assumption Assumes 10% of current revenue will shift to paying through CareCredit. This includes current cash payers switching and uncollected patients converting to CareCredit.

• Physician Offices
• 10$5,000,000
• • 3$5,000,000
  • 4$5,000,000
  • 5$5,000,000
  • 6$5,000,000
  • 7$5,000,000
  • 8$5,000,000
  • 9$5,000,000
  • 10$5,000,000
  • 11$5,000,000
  • 12$5,000,000
  • 13$5,000,000
  • 14$5,000,000
  • 15$5,000,000

• Outpatient Services
• 10$5,000,000
• • 3$5,000,000
  • 4$5,000,000
  • 5$5,000,000
  • 6$5,000,000
  • 7$5,000,000
  • 8$5,000,000
  • 9$5,000,000
  • 10$5,000,000
  • 11$5,000,000
  • 12$5,000,000
  • 13$5,000,000
  • 14$5,000,000
  • 15$5,000,000

• Inpatient Services
• 10$5,000,000
• • 3$5,000,000
  • 4$5,000,000
  • 5$5,000,000
  • 6$5,000,000
  • 7$5,000,000
  • 8$5,000,000
  • 9$5,000,000
  • 10$5,000,000
  • 11$5,000,000
  • 12$5,000,000
  • 13$5,000,000
  • 14$5,000,000
  • 15$5,000,000

Percentage of your annual patient responsibility revenue that will be estimated merchant fees* you will pay with CareCredit.

Preset Assumption 7% of billings where the patient used the CareCredit health and wellness credit card to pay for services.

• Physician Offices
• 7($5,000,000)
• • 7($5,000,000)

• Outpatient Services
• 7($5,000,000)
• • 7($5,000,000)

• Inpatient Services
• 7($5,000,000)
• • 7($5,000,000)

 

New patients

What percentage of your net patient revenue will be incremental billing from new patients/procedures?

Preset Assumption Assumes that CareCredit adds 3% of new revenue (patients having care because of the CareCredit option).

• Physician Offices
• 3$10,000,000
• • 0$10,000,000
  • 1$10,000,000
  • 2$10,000,000
  • 3$10,000,000
  • 4$10,000,000
  • 5$10,000,000
  • 6$10,000,000
  • 7$10,000,000

• Outpatient Services
• 5$10,000,000
• • 0$10,000,000
  • 1$10,000,000
  • 2$10,000,000
  • 3$10,000,000
  • 4$10,000,000
  • 5$10,000,000
  • 6$10,000,000
  • 7$10,000,000

• Inpatient Services
• 5$10,000,000
• • 0$10,000,000
  • 1$10,000,000
  • 2$10,000,000
  • 3$10,000,000
  • 4$10,000,000
  • 5$10,000,000
  • 6$10,000,000
  • 7$10,000,000

Percentage of your net patient revenue less CareCredit merchant fees* from new patients/procedures.

Preset Assumption 7% of billings where the patient used the CareCredit health and wellness credit card to pay for services.

• Physician Offices
• 7($5,000,000)
• • 7($5,000,000)

• Outpatient Services
• 7($5,000,000)
• • 7($5,000,000)

• Inpatient Services
• 7($5,000,000)
• • 7($5,000,000)

 

*Neither Synchrony nor any of its affiliates, including CareCredit, make any representations or warranties regarding the estimate provided. Calculations are based on a number of variables and actual results will vary based on the performance of the practice.