The payment systems in healthcare are rapidly transforming through digitalization, as most patients now prefer using online and mobile options to pay medical bills. This shift has led to a massive increase in demand over the past decade, highlighting the importance of digital payment systems for healthcare that are secure, efficient, and easy to use. However, many healthcare entities are still struggling to meet consumer expectations for seamless digital payment experiences, creating challenges in adoption and implementation.
CONSUMER PREFERENCES AND THE REALITY GAP
In a recent survey, it was noticed that more than 74% of people prefer digital payment. However, only 45% of healthcare entities are equipped with facilities for providing a digital payment option. This gap between the demand and supply is huge. Moreover, healthcare entities will be facing substantial risk. Consumers of the present time prefer convenience over anything else. They want an easy payment option and eliminate the manual payment systems.
IMPACT OF RISING OUT-OF-POCKET COSTS
The number of patients is growing rapidly across the globe, leading to increased medical bills. Most families are not able to afford the expenditure incurred on medical bills. Therefore, they opt for a flexible payment option to reduce the burden. They also prefer paying through digital wallets for convenience.
LABOR COST AND FINANCIAL PRESSURE
The labor cost has increased by 16% since 2021 in the healthcare industry. This indicates excess outflow of financial resources. Digital payment options offer to reduce administrative expenses and increase cash inflow. By implementing an automatic billing process, you can cut down on manual processes and save financial resources.
REVENUE CYCLE MANAGEMENT (RCM) IMPROVEMENTS
RCM is considered vital for healthcare entities in maintaining their budget. An implementation of effective RCM can lead to timely payment of bills, analyzing unpaid dues, and increasing cash inflow. They will also ensure that healthcare providers have enough supplies to cater to the patients. Introduction of digital payment plays a crucial role by offering real-time payment automation and tracking many processes.
THE SURGE IN DIGITAL PAYMENTS
The healthcare industry has noticed a 23% annual increase in digital payments. The increase in digital payment is driven by consumers using their mobile phones for making real-time payments. This adoption of financial technology offers convenience to the patients.
ADDRESSING PATIENT FINANCIAL STRESS
Many patients in America find it difficult to pay their medical bills. More than 33% of patients are in medical debt, and 40% of patients are skipping or delaying payment. This discourages the patient from seeking medical attention. There are multiple financial options that allow patients to spread their medical bills into monthly installments. This will result in reducing the financial burden for patients. The healthcare provider will also notice a reduction in bad debt by establishing flexible payment options.
CONCLUSION
The transformation and evolution of digital payment have positively impacted the healthcare industry. For some providers, it is considered an opportunity, while for others, it can cause problems. A seamless real-time digital payment system offers transparency and convenience for the users. There are several financial solutions that offer convenient payment plans for patients suffering from debt.
