Hospitals have long struggled with handling delinquent medical bills of their patients. In recent years the business of identifying potentially risky customers in advance of rendering medical services has picked up steam. Credit scores have been used by lenders, landlords and insurers to evaluate consumer’s financial risk. Now the business of handling and managing medical bills has moved into the arena of credit scores and credit profiles.
The medical credit score is intended to be similar to the credit score that lenders review when determining the risk level of a consumer that apples for credit. The concept of the mortgage lender or credit card company that looks at a credit report to determine a loan or credit card approval is moving to a hospital or other healthcare provider who will review a medical credit score to determine how likely a patient is to repay their medical bill on time.
From the hospital or medial service provider’s point of view, this is a tool for more efficient hospital billing and collections. But most patients that hear of this practice are surprised to learn that they’re being subjected to any form of credit or financial analysis. Even more importantly, some groups and patients are questioning whether this will develop further and patients may be denied care if their credit score is too low.
Another clear concern is the amount of errors in existing credit reports. Credit scores can be complicated and sometimes hard to fix and the likelihood that these problems will happen with medical credit scores and create more problems in the health care sector is a grave concern.
Credit scoring models in the health care industry have the potential to be a very large business, with the large rate of unpaid bills. Medical credit scores or health care score were initially designed for use in post treatment billing. The medial providers use the information to determine how aggressively or which procedures to employ top collect on a medical bill. But, again the question of any data being used in unforeseen ways is a big concern for many consumers.
For those consumers that are concerned about whether a hospital should have access to their credit history or credit score or even their financial records, make sure to read all the admission papers carefully that are asked to be signed. Any organization, including a hospital, needs to have the consumer permission to obtain information about their specific credit history.
Even while credit scores and credit histories have become increasingly important in most consumers day to day lives, it is hard to imagine how the use of credit profile and credit scores use could be employed in such a manner.
In the end, whether the medical credit score concept is accepted or not, this is another reason why it has become so important that consumers check their credit reports and credit score. By knowing what is in your credit report, consumers are able to see any erroneous data that should be corrected and all claims of debts that have been reported in the credit history including medical claims that were made in a credit report.
The growing use of credit reports and credit scores makes it imperative that consumers track and dispute any items that were reported as unpaid and challenge any claims that can adversely affect their credit rating.