How health care providers can stop chasing payments
September 25, 2017
By Scott Kimsey
Health care is one of the slowest-developing industries in terms of payment processing – even though health care affects nearly everyone. With industries like retail, food and even hospitality digitizing payments, the health care industry continues to play catch up. In 2015, it took 70 percent of health care providers a month or longer to collect payments from their patients.
Health care providers’ main focus should be providing care – not chasing down payments.
But setting up a modernized payment processing system can be daunting. It’s vital to find a partner that offers a payment solution designed for the health care industry, instead of the retail or restaurant solutions that most payment processors lead with.
In 2016, health care spending rose to $3.4 trillion; it’s expected to reach $5.5 trillion by 2025. Consumer spending alone in the industry could hit $608 billion over the next two years. This provides an even bigger opportunity to streamline payment processing systems across the industry.
Here are three things to look for in a potential partner when it comes to payments.
Multiple ways to pay
Many patients today, especially millennials, are comfortable going cashless and don’t own checkbooks. But switching to online payments isn’t just about catering to millennials. Patients across generational lines are showing an increased preference for online and electronic payments in health care.
According to the Federal Reserve of San Francisco, only 3 percent of consumers identify checks as their preferred method of payment. In fact, studies show that customers don’t want to pay for their health care any differently than how they pay for their basic amenities – reflecting an increasing demand for digital payment options.
Patients are shifting away from paper-based payments, and the use of manual processes for tracking and storing information opens the door to security issues and unintentional breaches of private payment information.
Inaccurate assumptions about payments – for example, that baby boomers want to pay by check, or millennials only make payments online – can also harm the industry. In reality, patients want omni-channel payment options, regardless of their demographics. Providers should look for a partner that can upgrade their payments mix with a variety of options to fit patients’ evolving needs.
24/7 automated payments
People seek the convenience of paying whenever and wherever – not just when the doctor’s office is open. With more patients wanting to pay their bills outside of regular business hours, providers need payment options that don’t require staff assistance – enabling 24/7 payment acceptance with less friction.
Sixty-eight percent of consumers say they prefer electronic payment methods to pay their medical bills, and four out of five prefer online payment channels to pay their premiums.
Electronic payments deliver instant benefits to patients. From knowing a transaction is complete as soon as their card is swiped to having peace of mind that they won’t have to wait weeks for a check to be processed, automated payments are a value-add for health care providers.
Incorporating automation into payments can make the point of sale process more efficient. Patients save time when their cards are electronically on file, meaning less time in the waiting room and more time getting the care they need.
Centralized solutions
Health care is one of the few industries where most information is still collected and passed through paper-based processes. This is more than just an outdated practice – it is inconvenient.
If the health care industry went paperless, providers could save as much as $9.4 billion.
Paper is not only expensive, but time consuming. The average time spent on processing a manual paper-based transaction is eight minutes, but can be as long as 30 minutes and cost three dollars more, compared to electronic transactions.
Further, 90 percent of providers say payment security is very important when collecting patient payments, but paper-based data and legacy technology-maintained data can be easily stolen or hacked.
A centralized payment system allows providers to quickly and easily access information related to remittances, eligibility and bill payments. This eliminates the need to shuffle through hundreds of thousands of pieces of paper, putting vital information into one platform. With centralized payments, providers get the information they need in their hands – not in the hands of hackers.
It’s vital for health care providers to find payments solutions that work not only internally, but also for their patients. Digitizing payments allows patients to pay online, eliminating a need for employee intervention – which lessens time in the waiting room.
Choosing the right partners isn’t always easy, but keeping the most important part of health care front-of-mind can help the decision process. By securing simple electronic payment options, health care providers can rapidly expand their patient satisfaction and make going to the doctor’s office a little easier.
About the Author: Scott Kimsey is the vice president of the Corporate Business Unit at Worldpay U.S. and has over 25 years of experience in the electronic payments industry.
Health care is one of the slowest-developing industries in terms of payment processing – even though health care affects nearly everyone. With industries like retail, food and even hospitality digitizing payments, the health care industry continues to play catch up. In 2015, it took 70 percent of health care providers a month or longer to collect payments from their patients.
Health care providers’ main focus should be providing care – not chasing down payments.
But setting up a modernized payment processing system can be daunting. It’s vital to find a partner that offers a payment solution designed for the health care industry, instead of the retail or restaurant solutions that most payment processors lead with.
In 2016, health care spending rose to $3.4 trillion; it’s expected to reach $5.5 trillion by 2025. Consumer spending alone in the industry could hit $608 billion over the next two years. This provides an even bigger opportunity to streamline payment processing systems across the industry.
Here are three things to look for in a potential partner when it comes to payments.
Multiple ways to pay
Many patients today, especially millennials, are comfortable going cashless and don’t own checkbooks. But switching to online payments isn’t just about catering to millennials. Patients across generational lines are showing an increased preference for online and electronic payments in health care.
According to the Federal Reserve of San Francisco, only 3 percent of consumers identify checks as their preferred method of payment. In fact, studies show that customers don’t want to pay for their health care any differently than how they pay for their basic amenities – reflecting an increasing demand for digital payment options.
Patients are shifting away from paper-based payments, and the use of manual processes for tracking and storing information opens the door to security issues and unintentional breaches of private payment information.
Inaccurate assumptions about payments – for example, that baby boomers want to pay by check, or millennials only make payments online – can also harm the industry. In reality, patients want omni-channel payment options, regardless of their demographics. Providers should look for a partner that can upgrade their payments mix with a variety of options to fit patients’ evolving needs.
24/7 automated payments
People seek the convenience of paying whenever and wherever – not just when the doctor’s office is open. With more patients wanting to pay their bills outside of regular business hours, providers need payment options that don’t require staff assistance – enabling 24/7 payment acceptance with less friction.
Sixty-eight percent of consumers say they prefer electronic payment methods to pay their medical bills, and four out of five prefer online payment channels to pay their premiums.
Electronic payments deliver instant benefits to patients. From knowing a transaction is complete as soon as their card is swiped to having peace of mind that they won’t have to wait weeks for a check to be processed, automated payments are a value-add for health care providers.
Incorporating automation into payments can make the point of sale process more efficient. Patients save time when their cards are electronically on file, meaning less time in the waiting room and more time getting the care they need.
Centralized solutions
Health care is one of the few industries where most information is still collected and passed through paper-based processes. This is more than just an outdated practice – it is inconvenient.
If the health care industry went paperless, providers could save as much as $9.4 billion.
Paper is not only expensive, but time consuming. The average time spent on processing a manual paper-based transaction is eight minutes, but can be as long as 30 minutes and cost three dollars more, compared to electronic transactions.
Further, 90 percent of providers say payment security is very important when collecting patient payments, but paper-based data and legacy technology-maintained data can be easily stolen or hacked.
A centralized payment system allows providers to quickly and easily access information related to remittances, eligibility and bill payments. This eliminates the need to shuffle through hundreds of thousands of pieces of paper, putting vital information into one platform. With centralized payments, providers get the information they need in their hands – not in the hands of hackers.
It’s vital for health care providers to find payments solutions that work not only internally, but also for their patients. Digitizing payments allows patients to pay online, eliminating a need for employee intervention – which lessens time in the waiting room.
Choosing the right partners isn’t always easy, but keeping the most important part of health care front-of-mind can help the decision process. By securing simple electronic payment options, health care providers can rapidly expand their patient satisfaction and make going to the doctor’s office a little easier.
About the Author: Scott Kimsey is the vice president of the Corporate Business Unit at Worldpay U.S. and has over 25 years of experience in the electronic payments industry.