Delivering Financial PEACE OF MIND

for Healthcare Providers and Patients

Looking for Answers to the Self-Pay Challenge

Healthcare finance executives are employing a number of new revenue cycle strategies, including the implementation of patient-friendly loan programs to

extract value from a significantly undervalued asset: self-pay balances.

Introducing the ClearBalance Solution.

Tackling the Growing Self-Pay Problem

For most hospitals, their mission is clear: to provide superior healthcare services to the communities they serve.

However, in recent years, a perfect storm has gathered strength and threatens the nation’s healthcare industry. Consider the following statistics:

72% of hospitals report reduced operating margins; 50% of hospitals report reduced nonoperating income; and 44% of hospitals report reduced access to capital —American Hospital Association

64% of hospitals experience an increase in self-pay balances AFTER insurance of at least 10%—HFMA Financial Pulse Project

87% of hospitals reported an increase in bad debt or charity care as a percent of total gross revenue—American Hospital Association

75% of healthcare facilities report greater increases to bad debt now than from the 2001 recession—TransUnion Survey

According to the McKinsey Research Group, the national average for uncollected self-pay each year is 49.3%. Moreover, patient self-pay receivables have more than tripled since 2001 and are now between 10% and 20% of expected hospital cash flow streams.

Industry research also indicates that even the best paying patients require an average of 3.3 statements before they pay their bill, stretching a hospital’s time to collect to over 100 days. HFMA estimates that the average cost to send a single statement is $10.

by CSI Financial Services

Here’s what our program participants are saying about ClearBalance:

“I wish to thank you for your assistance. If the need arises again, would it be possible to request your staff to handle (hospital issues) on my behalf?”

—Roger from Indianapolis, Indiana

“I get such wonderful service every time I call. I love to call in just to get help!”

—Nancy from Arlington, Texas

“Thank you sooo much! The cancer really scared me, but I thought the bills would kill me. You’re a lifesaver!”

—Terri from Marion, Indiana

ClearBalance: A Track Record of Delivering Value

ClearBalance, by CSI Financial Services, is led by a team of senior executives who have more than 75 years of experience working in the healthcare and finance industries. The ClearBalance team understands the challenges facing its clients—particularly the ongoing struggle of managing the day-to-day business operations of a healthcare institution.

ClearBalance is the healthcare industry leader in providing zero- and low-interest bank loans to patients with extremely affordable monthly payments. In fact, since 1992 ClearBalance has provided bank loans to more than 500,000 patients nationwide with a 99% patient satisfaction rate!

Featuring easy qualification criteria and no written application requirement, the ClearBalance program assures that patients will quickly and easily qualify for the bank loan program. In addition, there are no prepayment penalties, origination fees or annual fees—further ensuring patient satisfaction.

ClearBalance offers healthcare providers tangible, measurable benefits:

Accelerating cash from self-pay receivables

Reducing A/R days

Preventing patients from going to collections

Reducing bad debt by 20% or more

Eliminating the administrative headache of trying to collect self-pay balances

Improving patient relations and satisfaction

With ClearBalance, healthcare providers can choose the loan program that best fits their mission, financial objectives and

the needs of their patients. Loans may be offered at any point or at multiple points in the revenue

cycle—admissions, patient financial services or in an automated fashion at

a specific time in the revenue cycle.

ClearBalance: delivering peace of mind to patients and healthcare providers.

ClearBalance: The Financial Cure for Healthcare Providers and Patients

As healthcare providers look for solutions to self-pay issues, consumers are also struggling to balance healthcare costs and out-of-pocket expenses including high deductibles and copayments. ClearBalance has funded more than half a billion dollars in patient loans, enabling hundreds of thousands of patients to easily and affordably repay their healthcare obligations.

Healthcare costs for a typical family of four increased 7.2% from 2009 to an all-time high of $18,074—Milliman Medical Index (MMI)

Employees contribute, on average, $5,300 a year for family insurance coverage and $1,350 for individual coverage—United Benefit Advisors

Financial experts believe that the recently enacted CARD Act of 2009 will make it more difficult and costly for consumers to gain access to credit that might have been used to pay their healthcare obligations

The ClearBalance mission is to provide patient-friendly bank loans that enable consumers to easily manage their out-of-pocket medical expenses, while providing healthcare providers a solution to help balance their revenue cycle.

ClearBalance’s customer service center, located in its San Diego–based corporate headquarters, provides its clients and their patients with best-in-class servicing . . . all designed to help patients meet their self-pay obligation and avoid going through the collections process.

EZ-FLEX Program

Complement current revenue cycle processes by offering an attractive alternative to patients who cannot pay their balance in one lump sum. Patients receive a revolving line of credit with a low interest rate and affordable monthly payments as low as $20 per month (depending on balance size). The healthcare provider is funded upfront for patient account balances, and ClearBalance manages ALL aspects of customer servicing.

Patient Benefits:

Affordable monthly payments

No prepayment penalties or punitive interest rates

Resolve balance over time without being sent to collections

Combine multiple accounts into one bill

Provider Benefits:

Healthcare provider determines program’s interest rate

Increase cash collections

Reduce A/R days and bad debt

Expand payment options for patients

Statements sent to patients in bank’s name reduces default

ZERO-INTEREST FLEX Program

Patients pay no interest over an extended period of time, dependent on the patient’s financial needs and account balance. The healthcare provider has the flexibility to offer each patient a monthly payment he or she can afford. This is a critical part of reducing default, keeping patients out of collections and improving patient satisfaction. The healthcare provider is funded upfront for patient account balances, and ClearBalance manages ALL aspects of customer servicing.

Patient Benefits:

Patient pays no interest or late fees

Affordable monthly payments

Consolidated statements for all amounts due to the healthcare provider with the ability to add on obligations incurred at the healthcare facility

Resolve balance over time without being sent to collections

Provider Benefits:

Allows flexibility to match monthly payment to amount patient is willing and able to pay

Reduce A/R days and bad debt

Increase cash flow

Statements are sent to patients in the bank’s name to further reduce default

Improve patient relations

ClearBalance: Programs to Benefit Healthcare Providers and Patients

For Financial Peace of Mind, Turn to ClearBalance by CSI Financial Services

ClearBalance provides valuable financial resources to healthcare providers by offering bank loans to help patients repay their self-pay balances and then services its customers with respect and dignity.

For additional information, contact us:

ClearBalance by CSI Financial Services

3636 Nobel Drive, Suite 250

San Diego, CA 92122

P: 858.200.9208

F: 858.200.9210

www.clearbalance.org