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The True Cost of a No-Show Appointment: How to Find the Right Solution

Tina Lj.5 min readSep 5, 2024Industry Insights
The True Cost of a No-Show Appointment: How to Find the Right Solution
Tina Lj.5 min read
Contents:
Why it's a problem
Our solution for inefficient appointment scheduling
The results of a comprehensive scheduling solution
Looking at the core issue of no-shows

Patient no-shows—when patients miss scheduled appointments—are a lose-lose situation for both patients and healthcare providers. These missed appointments not only disrupt the flow of care but also lead to significant financial losses. In fact, studies show that each no-show can cost an individual physician in the USA around $200 in lost revenue.

I read in Forbes article that Sachin H. Jain, President and CEO of SCAN Group & Health Plan, highlighted this very issue at a healthcare industry roundtable.

When asked about the biggest problem he's tackling in his organization, Jain didn’t point to a flashy new innovation. Instead, he focused on the challenge of predicting and addressing patient no-shows—an issue that, while seemingly straightforward, has serious implications for both patient care and the efficiency of healthcare practices.

Why it's a problem

1. Lost revenue and increased costs

Every time a patient misses an appointment without canceling or rescheduling in advance, healthcare providers face a direct hit to their revenue. You might think, "But doesn't the physician get some free time to focus on other tasks?" However, the time set aside for that patient remains unutilized, while operational costs, such as staff wages, facility maintenance, and other overheads, continue as usual.

For example, a typical doctor's office might schedule appointments at 15- or 30-minute intervals. If a patient does not show up, that time slot goes unfilled, and the physician still incurs the same costs as if the patient had attended. Even a small percentage of no-shows can lead to significant revenue losses over time.

One study estimated that 67,000 no-shows can cost the healthcare system approximately $7 million.

Moreover, no-show fees, often implemented as a deterrent, may only partially offset these losses and can sometimes even alienate patients if not handled carefully. While a small fee might encourage some patients to take their appointments more seriously, it doesn’t completely minimize the financial impact of frequent missed appointments.

2. Scheduling inefficiencies and resource wastage

No-show appointments also lead to considerable scheduling inefficiencies. When a patient misses an appointment, the carefully crafted schedule for the day is thrown off balance. This disruption wastes healthcare providers' time and can affect other patients, too. They are having longer wait times, and it potentially delays the care for those in need.

The inefficiencies extend beyond just the missed slot. Rescheduling missed appointments often requires additional administrative work. And we could say that administration is one of the biggest burdens of healthcare. There was research on how nurses spend their time. Less than one-third of registered nurses’ work time was spent with patients.

Missed appointments also mean that other patients, who could have used that time, are left waiting longer to receive care. In some cases, patients may have to wait weeks for the next available slot, worsening their medical conditions and leading to dissatisfaction with the healthcare provider.

3. Negative outcomes for patients

As we said, this is a lose-lose situation for patients and healthcare providers. When patients miss scheduled appointments, they often do so without fully considering the potential consequences for their own health and well-being.

The impact of no-shows can be particularly severe for patients with chronic conditions, those in need of timely interventions, or individuals with limited access to healthcare services.

  • Delayed diagnosis and treatment

  • Worsening of chronic conditions

  • Increased healthcare costs for patients

  • Loss of continuity of care

  • Reduced patient satisfaction and trust

Our solution for inefficient appointment scheduling

At Devōt, we had a partner that struggled with managing provider availability, leading to repeated rescheduling of appointments.

It was a lose-lose situation for both providers and patients. Because of this, a well-designed healthcare scheduling process was needed.

When a healthcare provider's schedule isn't correctly managed, it often results in overbooking or double-booking, causing delays and last-minute changes. These frequent changes can lead to confusion and frustration for patients, increasing the likelihood that they will miss appointments.

Additionally, when patients are rescheduled multiple times, they may lose trust in the reliability of the medical practice, leading them to cancel appointments or simply not show up.

We developed a robust backend to manage dynamic provider availability and efficiently generate time slots. We built a responsive and user-friendly interface for both web and mobile platforms, ensuring real-time synchronization of schedules and notifications to minimize appointment cancellations.

The results of a comprehensive scheduling solution

There are plenty of ways to deal with patients' missed appointments, but implementing a comprehensive scheduling solution can significantly reduce the incidence of patient no-shows and missed appointments. Here's why:

1. Reducing patient wait times

A well-organized scheduling system ensures that appointments are evenly distributed throughout the day, minimizing overbooking and reducing patient wait times.

This improves patient satisfaction and decreases the chances of patients deciding to cancel or miss their appointments. With fewer missed appointments, healthcare providers can offer more timely care to all patients.

2. Reducing administrative workload for providers

Effective scheduling systems can automate many manual tasks that contribute to inefficiencies, such as appointment reminders, rescheduling, and patient follow-ups.

By reducing the administrative workload, healthcare providers can focus more on patient care rather than on managing no show appointments or dealing with the fallout of missed appointments.

Automated appointment reminders is one of the things you can implement to work on the no show rates by keeping patients informed and engaged with their healthcare schedules.

3. Improving reliability

If you are already using scheduling system, but it is not effective it can impact your reputation. With our client previous attempts to implement a scheduling solution failed due to lack of a dedicated team and incomplete functionality.

The reliability of a proper appointment scheduling system reduces the likelihood of patients missing appointments and boosts overall patient satisfaction.

4. Better use of resources

Efficient scheduling allows for better allocation of healthcare resources, ensuring that doctors, nurses, and clinic space are used optimally. By minimizing the time lost due to missed appointments, healthcare providers can see more patients and use their resources more effectively.

This not only increases revenue but also enhances the quality of care provided, as practitioners can focus their time and attention on patients who are present rather than dealing with the consequences of no-show appointments.

missed doctor

Looking at the core issue of no-shows

A lot of articles are saying about the solution to the no-shows, but sometimes we need to take a step back and think about why are they even happening. What is the core reason.

Of course it's different for every health practice, but Sachin H. Jain President and CEO, SCAN Group & Health Plan pointed out that a lot of people are missing their appointments due to transportation issues.

Another issue arises from standard reminder calls that typically notify patients just one day before their appointment. If someone has completely forgotten about their appointment, there's a good chance they've already made other plans for the next day and will want to reschedule for a later date.

To address this, it would be beneficial to have a scheduling system that sends reminders about four days in advance, giving patients more time to adjust their schedules and reducing the likelihood of last-minute cancellations.

I understand that charging for no-shows might seem like the simplest solution, but it's important to dig deeper and address the root cause of the problem. By focusing on preventative measures and improving scheduling systems, we can significantly reduce no-shows and enhance the overall patient experience.

If you're ready to tackle this challenge and improve your practice's efficiency, reach out to us. See how we've helped companies in healthtech revolutionize their appointment management and reduce no-show rates.

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