How can social determinants of health impact the revenue cycle?

Social determinants of health refer to the conditions in which people are born, grow, live, work, and age, which can significantly affect health outcomes and access to care. Understanding how these determinants influence the revenue cycle is essential, as they play a crucial role in a patient’s ability to access healthcare services and their ability to pay for these services.

When patients face socioeconomic challenges, such as low income, lack of transportation, or limited education, these factors can create barriers to accessing healthcare. This can lead to delayed treatment, missed appointments, and overall decreased utilization of services. If patients are unable to access necessary healthcare, it can negatively impact revenue for healthcare providers since they may not be able to bill for services that were not utilized.

Additionally, social determinants significantly influence a patient's financial situation. For example, individuals from disadvantaged socioeconomic backgrounds may have limited or no insurance coverage, making it difficult for them to pay for care. This increases the risk of bad debt for healthcare providers and can lead to a decrease in revenue.

Therefore, recognizing and addressing social determinants of health is vital for healthcare organizations not only to improve patient health outcomes but also to ensure financial viability and sustainability in the revenue cycle.