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THE CREDIT CARD ACCOUNTABILITY, RESPONSIBILITY AND DISCLOSRE (CARD) ACT (pg 2)
written by Mitch Patridge, CEO of CSI Financial Services
How the CARD Act will Hurt Providers
- Lenders will reduce available credit to patients, only lending to individuals with good credit – many patients that used to pay with credit cards will no longer have that option
- Qualifying borrowers will face increased interest rates and larger minimum monthly payments – making them reluctant to use credit cards to pay for healthcare obligations
- Healthcare providers must seek alternative strategies such as internal payment plans or partnership with a third-party
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Cedars-Sinai Outpatient Cancer Center implemented a similar program in mid-2006. According to the Center’s Patient Accounts Manager, Dennis Hacela, “The program we chose was simple to integrate into our existing revenue cycle. It quickly reduced the number of accounts we had previously referred to collections and, most importantly, also increased patient satisfaction."
The CARD Act is scheduled to take effect in February, 2010. As the two previous examples illustrate, hospitals should be strategizing now so that they are in a position to help their patients -- and also help themselve
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