Discontinuing Patient Prompt Pay Discounts
Effective June 1, 2023, Mammoth Hospital will no longer offer patients a prompt pay discount due to state and federal regulations.
Mammoth Hospital has had a long-standing policy which has allowed patients to take advantage of a prompt pay discount; a benefit to patients awarded for their financial responsibility if a bill was paid within 30 days of their bill date.
Recent review of the policy determined that continuing to allow this practice would put Mammoth Hospital at risk for non-compliance with state and federal regulations. The most significant risk is that our discount could be seen as an incentive for patients to seek services from Mammoth Hospital over other facilities. The review was conducted by Mammoth Hospital’s internal Compliance Officer/Associate General Counsel, as well as an external legal firm that specializes in healthcare billing and collections. The recommendation from both was to discontinue the practice of offering a prompt pay discount to avoid potential violations.
“We have been proud to offer this discount to our patients over the years as a meaningful way to reward them for timely payments of their bills and to help keep costs down. Unfortunately, the complexity of the laws and regulations we are subject to restricts how discounts may be offered. As such, and in order to ensure ongoing compliance, we are no longer able to continue this long-standing practice.” said Mammoth Hospital CEO, Tom Parker.
Uninsured patients will receive a 30% discount for their services. In addition, every patient’s bill includes a copy of the Financial Assistance application. If patients request financial assistance and qualify, based on the patient’s family size and income, the amounts owed would be reduced as mandated by state and federal regulations.
More about Mammoth Hospital’s Financial Assistance program can be found here.
Specific Federal and California laws include:
- California Business and Professions Code, §657(c)
- 42 U.S.C. §1320a-7a(a)(5)
- 42 U.S.C. §1320a-7b(b)
- Federal Social Security Act §1128B(b), §1128A(a)(7), §1128(b)(7)
- California Welfare and Institutions Code 14107.2