Covid-19 has brought a long-overdue shock to healthcare payments. Public health emergencies have exacerbated the industry’s problems with manual, paper-based, and face-to-face operations. According to a recent report by InstaMed, it also forced suppliers to simplify their revenue cycle practices and provide more digital payment options, including quantitative data on the $393 billion healthcare payment processed on its platform, as well as from consumers, suppliers Survey data of merchants and payers.
The pandemic has accelerated many consumer-centric digital trends in healthcare, such as telemedicine and contactless payment options. It’s not just young, tech-savvy patients who use these options. According to the report, millions of medical insurance beneficiaries made contactless payments in 2020, and home orders have affected the digital transformation.
Some key findings about consumers in the report:
- 82% Want to pay all medical expenses in one place
- 85% Prefer electronic payment methods for medical bills and insurance premiums
- 66% Receive medical bills by mail
Many health organizations continue to ignore the link between payment experience and overall patient satisfaction.
The demand for digital payments shows no signs of diminishing—78% of consumers surveyed said they want contactless payment options to continue. Healthcare organizations should take a data-driven approach, focusing on consumer sentiment to improve the payment process and their own financial outlook.
Provider Trend: Shocking disconnect and demand for simplified payments
Patients attach great importance to convenience of payment-more than many providers realize. 42% of providers believe that the collection will not affect the patient experience. However, 56% of consumers will consider changing providers to get a better medical payment experience. Patients have seen digital growth in other industries, so they will notice when the healthcare provider’s system is lacking.
For patients, this is also a cost issue. Compared with the past, consumers bear a larger share of the cost of visiting providers, and they visit providers more frequently, which may further link consumer loyalty to the payment experience.
Simplified online payments provide an opportunity to increase customer retention, increase revenue, and improve efficiency. On average, manual transactions are $5.42 higher than equivalent electronic transactions and require an additional 9 minutes of labor. For health organizations with limited resources and staff, these savings may be necessary.
Payer trends: a quiet year for claims and a strong transformative position
At the beginning of the pandemic, the patient traffic of many providers dropped sharply, which helped to enhance payers’ performance in 2020 as their claims were reduced. Even if the pandemic restrictions were relaxed, this pattern has not changed significantly.
Almost all payers will prioritize consumer preferences in order to pay all medical expenses in one place. In addition, 89% of payers surveyed are already using or planning to use artificial intelligence and machine learning products, and the adoption rate of digitalization by consumers and healthcare organizations continues to rise. However, payers must innovate the supplier reimbursement and membership payment experience to maintain a positive trend.
Prescription involves paving the way for the future of payment
After the pandemic has changed our daily lives, our work habits and our consumption habits, we can no longer return to the old way of doing things. The healthcare industry will not switch to traditional payments. Digital payment solutions will help organizations rebuild and prepare for future waves of disruption. To meet the needs of these consumers, suppliers and payers should continue to provide innovative contactless payment and care options.
Photo: Julia_Sudnitskaya, Getty Images
