Throughout history, the basis for what made the world go ‘round (read, fueled the economy) has evolved over time. For many centuries, it was agriculture, then industry/manufacturing. These days, services are accounting for more and more of the world GDP — in fact increasing at a faster rate than other industries. Think about all the services you, your family, or your business uses. I’m not just talking about what you would obviously think of as services, like getting service on your car or at a restaurant, but also any business that provides an electronic or digital service like your wifi, logistical services like UPS or any trucking carrier, or computing service like hosting your information in the cloud. Another trend that has been emerging within the service industry itself is a shift from a fee-for-service model to a pay-for-performance, or performance-based contracting model. But what does that mean and is it a better model?
Let’s look at it in terms of a more traditional service that may soon become a concern of yours if you are a homeowner — lawn maintenance. Tis the season after all. Currently, most lawn maintenance services charge you a regular treatment/mowing fee. They come monthly or weekly, do their thing, and you pay X number of dollars. But what if you are not pleased with the service? What if weeds are popping up here and there, and your lawn is looking more yellow than green? You still have to pay the same amount. If your lawn maintenance was based upon a performance-based contract, you only pay if your lawn looks great, according to standards that were set forth in the terms of the contract. For example, you should see fewer than X number of weeds in your yard between treatments. Doesn’t that seem like a better way to do business? Here’s why.
Performance Based Contracts Lower Risk for Clients
Health iPASS has an especially low-risk contract model because there are no set-up or training costs compared to other revenue cycle vendors. There are also no monthly, quarterly, or yearly service or maintenance fees or upfront capital expenditures for hardware. “But how the heck do you get paid?” you might ask. Excellent question. We receive only a small percentage of the revenue collected through our patient payment and check-in solution.
A True Partnership
In a performance-based contract, the interests of client and service provider are closely aligned — getting the results the client wants. To put it simply, we only win when you win, so we really, really want you to win and will do what it takes to support that goal. Health iPASS works to develop meaningful long-term relationships with clients whose success we truly care about. Another way to say it: Health iPASS has "skin in the game" to demonstrate our commitment to your success.
More Open Dialogue
When a company’s success is tied to your success, both parties have a vested interest in establishing clear expectations and communicating if those expectations are not being met. If that happens, both parties can work together towards creative and lasting solutions. That’s a refreshing change from other types of service agreements. Yes, I’m looking at you, unnamed cable TV company…
Let’s take a gander at the elephant in the room—costs. With performance-based contracts, what you are really paying for is the desired outcome, not the service itself. As stated previously, with Health iPASS you do not pay arbitrary monthly service costs or maintenance fees. You only pay for the benefits you receive though the use of the Health iPASS patient revenue cycle solution: increased operating income through optimized patient payments, better price transparency, and higher patient engagement and loyalty. That’s like only paying for your gym membership if you see results from regular workouts. Nice.
This performance-based contract is a major value differentiator between Health iPASS and other patient revenue cycle management organizations. Low risk, high potential reward—why are you not scheduling a demo right now? Do it! Your practice’s bottom line will thank you.