The Financial Impact of Using HIPAA Compliant Text Messages

Today, the mix of channels payers and providers can use to communicate with their members and patients can be very varied: from direct mail to call centers to portals and text messages. What makes us choose one format for communication over the other and are there financial benefits to consider? In this post, we look to outline how using HIPAA compliant text messages allows payers and providers to communicate securely with member and patients on one of highest visibility and engagement channels available. However, it is not as simple as picking up a phone and sending a text message that includes PHI and calling it a day. There are many rules and regulations that a health payer or provider must follow to ensure that those text message are in fact HIPAA compliant, especially when protected health information, or PHI, is included. We have an entire blog post dedicated to those rules, so check that out for reference.  

The Relay Feed is a HIPAA compliant mobile communication channel, leveraging text messaging to a secure, browser-based scrolling feed for patient and member engagement. Relay partners with leading healthcare payers and providers to drive important member and patient actions that impact cost of care, cost to serve, and overall health outcomes. Click below to see the Relay Feed in action!

Here, we are going to discuss the financial impacts of using HIPAA compliant text messages (the right way) to communicate with patients and members. Of course there are many benefits to HIPAA compliant text messages, including elevated security, commitment to member and patient privacy, and building member and patient trust; however, the economic benefits can be substantial and should not be overlooked. 

To put it in perspective, according to a recent analysis from Fierce Healthcare, national health expenditures increased from $2.8 trillion in 2012 to $4.5 trillion in 2022. From the same analysis, they found that expenditure is projected to grow to $7.7 trillion by 2032, with chronic disease treatment comprising a significant portion of that spending. Additionally, McKinsey found that “it is estimated that digitally enabled capabilities could reduce medical costs in the United States by as much as $175 billion to $220 billion annually.” As a digitally enabled tool, HIPAA compliant text messaging can help drive those cost reductions.   

Here is a list of the high-level financial benefits a payer or provider can expect from using HIPAA compliant text messages: 

We jump into the specifics of each one below.

Communicating and engaging with members and patients requires significant administrative time, effort, and resources. And that time and effort applied equates to some significant costs for the organization. Here are some ways that HIPAA compliant text messages can reduce those administrative costs. 

Mailers and outbound phone calls, two of the most common ways that health payers and providers get in touch with their members and patients have a much greater cost as compared to digital-first channels like email and texting. For example, one Relay health payer client shared that for one of their plans with 3,000 members, they are spending almost $250,000 a year for mail and postage, which breaks down to about $83 per member. Multiply that by the entire member base, and the plan is spending millions of dollars a year on mail and postage alone.

Clients using the Relay Feed, a HIPAA compliant mobile communication channel, have seen on average 20% reduction of direct mail. Click below to experience a Relay Feed for yourself.  

Outbound phone calls are another costly outreach method. Many of those calls, whether robocalls or customer support, can easily be replaced by HIPAA compliant texting. In fact, another Relay health payer client saw a 33% reduction in robocalls during the first year of their Relay program deployment. 

Healthcare apps, portals, and websites are important as well, but they are primarily self-service for members and patients and are initiated by another form of outreach. By switching to HIPAA compliant text messages, patients and providers can direct members and patients to those existing digital tools while also reducing administrative costs.  

There are additional administrative costs tied to billing and claims processes. Using a secure platform with HIPAA compliant text messages, payers and providers have enhanced record-keeping and audit capabilities that can help simplify claims and billing processes, saving time and resources for administrators.  

Since chronic diseases account for 86% of our nation’s total healthcare costs, it is important for health payers and providers to find effective ways to close care gaps, drive preventive care screenings, and provide care management tools for chronic conditions. 

Using HIPAA compliant text messages, payers and providers can securely communicate with members and patients about early screenings, education around preventive care techniques, and immunization reminders. Because of the immediacy of a text message, 97% opened within 15 minutes, members and patients are more likely to see the communication and therefore act on it. Additionally, when they use HIPAA compliant text messages, payers and providers can include more detail for that patient or member making it easier for them to take action. 

Moreover, quality scores are highly influenced by member and patient compliance with screenings, immunizations, and chronic disease care plans, like for diabetes. The use of HIPAA compliant text messages for things like preventive care and care gap closures can directly tie to quality score improvement, which leads to higher reimbursements for payers and providers.

One Relay client saw an improvement in 16 out of 24 HEDIS measures when using the Relay Feed for member communication and engagement, which equated to around $1.3 million in ROI. See how a Relay Feed works for you! 

The annual cost of missed appointments in the US is $150 billion. No show rates vary between 5-30% nationwide but when there are open or no show appointments, they can cost up to 60 minutes and an average of $200 per physician. 

By leveraging HIPAA compliant text messages, healthcare providers can streamline appointment reminders, follow-ups, and patient education, which can lead to fewer missed appointments and improved patient adherence to treatment plans. 

Awareness and education are the best ways to inform members and patients about health benefits and resources that they have available to them. Using HIPAA compliant text messages, health payer and providers can more effectively and efficiently reach their member and patient populations with important information about the benefits that they have.  

Resource and benefit utilization can lead to increased revenue and cost savings for healthcare organizations. For example, two-thirds of patients mistakenly see an out-of-network provider, leading both them and their insurer having to pay more. Payers can save themselves costs by more effectively communicating accurate provider information to their members. HIPAA compliant text messages enable payers that ability to share specific provider information, streamlining the process for members.  

Another huge cost for payers is overutilization of the ER. In fact, according to a study done by UnitedHealth Group, two-thirds of the 27 million emergency department visits annually by patients with private insurance are considered “avoidable”, as in, they are treatable in a primary care setting. Health payers can use HIPAA compliant text messages to provide members with other, less costly care options, like urgent care centers. Using Relay’s HIPAA compliant solution, one health payer client saw a 14% reduction in non-emergent visits to the ER. 

Lastly, payers and providers can leverage HIPAA compliant text messages to drive utilization of telehealth services. Beyond the cost, time, and resource savings that telehealth enables, a JD Power study found that expanding telehealth usage is associated with a 39-point increase in overall customer satisfaction. This segues nicely into the next section, which includes the benefits of fostering loyalty and trust with members and patients. 

Customer satisfaction is directly tied to trust and loyalty, and that is no different in healthcare. Using HIPAA compliant text messages, payers and providers can demonstrate their commitment to patient and member privacy and security, which helps foster trust and loyalty, leading to higher patient retention rates and positive referrals. Not to mention around 85%, of patients and members prefer texting over email or phone calls, and 55% reported that they would switch providers if their communication preferences were not met. By meeting members where they are, health payers and providers can reinforce their commitment to providing the best service and care, fostering trust with members and patients.

One Relay client had the following to say about how our channel, a HIPAA compliant communication platform, has helped build trust with their members:

Lastly, compliance violations come with hefty penalties and fines for health payers and providers, along with potential reputation damage which can have and even bigger ripple effect. According to the HIPAA Journal, the penalties for HIPAA violations range from $137 to $68,928 per violation, depending on the severity of the offense. By using HIPAA compliant text messages, which always have things like encryption, access controls, audit trails, health payers and providers can avoid those costly penalties. If you would like more information or guidance on all of the regulations and requirements for HIPAA compliant texting, see the U.S. Department of Health and Human Services Office for Civil Rights website.

In conclusion, the financial benefits of using HIPAA compliant text messages are clear and impactful for both healthcare payers and providers. From reducing administrative costs and improving patient compliance to fostering trust and loyalty, this secure communication method not only enhances patient care but also drives cost savings and operational efficiencies. By adopting HIPAA compliant text messaging, organizations can optimize their outreach efforts while safeguarding patient privacy, ultimately contributing to better health outcomes and a stronger bottom line. 

To learn more about how Relay can help with your member engagement, reach out to sales@relaynetwork.com

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