By Lâle White and Jane Hermansen

Consumerism is not a new concept. In fact, it seems rather intuitive that most people like to know what they are buying, and for exactly how much, so they can weigh their purchasing options. However, this isn’t the case in the healthcare industry. Patients are often not sure what they will end up owing after a visit to the doctor or hospital, and on top of that, usually do not leave with much tangible or actionable information to take with them.

While this uptick of consumerism has been much slower than in other industries, it is at last starting to permeate healthcare and is beginning to evolve the way patients engage with their providers and their own health information. Patients are becoming more empowered when deciding how and where they receive healthcare services and are also starting to demand more information about their own cost responsibility. Surprise billing is a great example of this. Surprise billing is when patients receive charges after getting care from a doctor or hospital not in their insurance network (unbeknownst to them). Consumers and legislators are becoming more vocal in regard to this issue. In fact, a new poll from the Kaiser Family Foundation shows that nearly eight in 10 Americans support legislation to protect people from surprise medical bills.

As these expectations become more popular in healthcare as a whole, consumerism is also beginning to reach the diagnostic laboratory industry specifically. While this is a space that has traditionally been non-patient-facing, labs must be ready to adapt to the changing healthcare landscape to remain successful — and this means improving patient engagement and cost transparency. By combining technology innovation and information-sharing strategies, labs can make an impact in these areas.

Three ways to improve cost transparency and patient engagement
More financial burden is being transferred to patients now more than ever before. For example, more and more patients are footing the bill for services due to increases in things like changing coinsurance ratios, increasing bad debt write-offs and high deductible plans. It therefore becomes quite clear that more effort must be made to educate patients, as well as to proactively communicate with them about the diagnostic services that are being performed before they receive a bill they may otherwise not expect. By adopting the following technology and information-sharing techniques, the lab industry can help improve cost transparency and patient engagement.

Communicate early and often
To help patients get an idea of what their lab bill might be, consider utilizing technology that allows for the lab to proactively communicate with a patient after their test has been performed — but before they receive the bill. Labs must also offer multiple options for communication, especially as technology-based interactions continue to rule today. These can include patient portals, text and email, as well as standard mailed information and call centers.

Determine eligibility and minimize denials with technology
Verifying patient insurance, deductibles or copays can be a challenge, so adopting automated eligibility tools can be very helpful. These can also help when it comes to preventing unnecessary denials. Solutions that offer real-time feedback are ideal for these kinds of tasks.

Offer alternatives for cost-conscious patients
Developing processes like payment plans, discounts for cash payments or information on charity programs is helpful for patients who may otherwise decline services due to price or financial status. These options offer them ways to have the test they need rather than forgoing it due to cost.

Accessing and understanding diagnostic data
On top of issues related to cost, patients also run into challenges when it comes to accessing and understanding their information. With the progression of consumerism in healthcare, patients will also require these things in addition to increased engagement and cost transparency. Lab data is a vital part of this picture, and improvements in technology and engagement strategies are helping to increase patient connectivity with their data. However, patients also need to be able to translate this data into actionable insights. This is where diagnostic leaders and physicians can work together to help communicate lab results and translate them into meaningful information for patients.

According to a 2018 survey by Accenture, a majority (67 percent) of U.S. residents who access their electronic health records (EHRs) found lab test results to be the most helpful EHR information among prescription medication history, physician notes and more. This points to the fact that patients are already seeing the lab’s value, and that labs will need to adapt to meet the consumer demand for data access via digital and mobile devices. This is especially true as we continue to see an evolution in where and how lab testing is being performed — from genomic profiles replacing certain tests, to home-based testing becoming more popular.

A provider’s relationship with their patient should start from the moment they order a lab test — not when the patient receives an invoice. To achieve this, diagnostic providers must embrace healthcare consumerism and leverage the technology and strategies available today to improve patient engagement and cost transparency. Taking the right steps now will help improve communication between all healthcare stakeholders into the future.

About the authors: Lâle White is the CEO and founder of XIFIN, and Jane Hermansen is the immediate past-president of the Clinical Laboratory Management Association (CLMA).