In response to those struggling patients who have been having problems paying medical bills and out of pocket expenses during this troubled economy, Ft. Lauderdale-based, A New Horizon is working with local hospitals to assist these individuals and families in regaining control of their finances.
“Our goal in doing this is to offer healthcare providers a new incentive that we felt was a softer and a more solution oriented holistic approach that would not only enhance their recoveries but also enhance their image,” says Peter Carvalho, Director of New Business Development for A New Horizon, a credit counseling company with over 14 years experience as a 501 (c) (3) non-profit organization.
He adds, “We plan to go into the healthcare community and tell them that since were having great success in putting families back onto firm financial footing, we can help you with non-performing debt from past due accounts , rather than sending them out to collections and or writing off the debt which are both PR nightmares.”
This is accomplished using Financial Literacy training, budget management and a host of solution oriented programs to counsel individuals with a structured debt management plan to assist them in realistically paying off their existing financial obligations in full. Patients and debtors would work with certified credit counselors with Financial Wellness as their goal, thus maintaining a good relationship with the hospital and their healthcare professionals.
“We can help these patients who are struggling and doing a juggling act and we could get them into a program that would consolidate their debt into an affordable realistic budget and get the hospital paid on an on time monthly basis. Ultimately at the end of the term, hospitals would get back 100% of what they are owed” says Carvalho.
According to Carvalho, the programs achieve two things: creditors recover the money theyre owed in an organized manner and families are educated on managing their own finances in the future. “Its a win-win situation for everyone.”
If A New Horizon is contacted upon admissions or if “Financial Wellness” services is part of the discharge planning process, A New Horizons certified financial counselors would assist and counsel individuals and families so theyre both prepared for and budgeted to handle their financial obligations under this new program. The counselors will do a complete budget analysis of their current financial condition and show them how to improve it so they would be ready to handle any potential out of pocket medical expenses.
While this concept works for virtually any industry: banks, credit unions, and collection agencies, A New Horizon is targeting healthcare providers.
“In the short term, we can help people with their finances and assist them in establishing and maintaining a realistic budget and in the long run, we can get the hospital 100 percent of what they are owed rather than getting them a percentage of the balances owed and paying collection agency fees or having to write off the debt,” Carvalho says. “In addition, after writing off the debt and dealing with bad press in the community, providers are usually faced with negative attitudes of returning patients as well. This tragedy is compounded after providers go to great lengths to offer the highest level of patient care in their hospitals.”
Carvalho says that they plan to launch this as a study project with hospitals to make sure there are results and that it is indeed effective.
“Its a no-risk type of venture,” he says. “Since were non-profit, the goal is to take that test portfolio and demonstrate that we can usually return that debt 100%. Long term, we want to expand this to as many hospitals as possible. We started this program as an outreach to the healthcare community and other industries. We think there is a good synergy by partnering healthcare initiatives with financial wellness initiatives and together we can improve our communities health on all levels.”
