Collecting patient responsibility has become an increasing challenge for healthcare organizations. COVID-19 presented a host of novel patient engagement problems in the past couple of years, including those related to how to collect payments while improving the patient financial experience. The pandemic exposed shortcomings of the traditional patient payment process: health risks related to paying bills in person, virtual care and communication issues, increasing medical debt, the need for payment plans, lax security and privacy, and the need for more payment options.
Prioritizing the entire patient experience—from the time the patient researches providers to paying their last bill—is the key to improved patient engagement and successful collections. The approach to engaging patients and curating the patient financial experience is changing, and healthcare leaders will need to continue to think outside the box to win patients over.
Here are the top eight patient payment trends that healthcare leaders should be aware of in 2023.
#1: Digital First Payment Methods
Unsurprisingly, an increasing number of people want to be able to pay bills digitally. In fact, 82% of Americans already used digital payments as of 2021, including browser-based payments, in-app online purchases, in-store checkout using a mobile phone, and QR codes. That number was 72% in 2016. Like other industries, healthcare is focused on utilizing technology to offer consumers more ways to pay, but the numbers indicate that there is still significant room for improvement.
COVID-19 forced providers to shift their focus from in-person care to virtual care models. A recent study found that the patient payment experience can be improved with increased patient engagement, increased payment options, and pricing transparency. Healthcare leaders that lean into the push toward digital-first payments, will be able to improve patient engagement and the bottom line for their organization. Offering digital payment methods requires less staff involvement and makes it easier for patients to pay—leading to an improved patient experience and better outcomes, which consequently increase collection and reduce bad debt.
#2: Mobile Payments
As noted above, consumers want to be able to pay their bills online, and an increasing number want to pay directly from their cell phones. In healthcare, this is referred to as text to pay. Adoption of this payment method is increasing, but the complexity related to PCI compliance and other technical barriers has slowed some provider organizations despite the benefits.
The patient financial experience is often a major pain point for both patients and providers. Removing barriers related to these pain points is imperative if digital payment adoption is going to continue to increase.
Given the adoption of mobile phones across demographics, leading healthcare experts are optimistic that healthcare will meet consumer demand. A great example of meeting consumer demand is Apple Pay. Apple realized that consumers preferred to pay for things with their iPhones because using a credit card created a point of friction. Therefore, Apple Pay has been successful in reducing the friction of making day-to-day payments. It is no surprise that recent research shows Apple Pay is the most preferred wallet by nationwide consumers.
Simplifying the patient’s payment experience by offering a way to pay medical bills directly from a mobile device, for example, Text-to-Collect and Text-to-Pay may increase patient engagement while also enabling more frequent, on-time payments.
#3: Recurring Payment Plans
Despite more than 90% of the United States population having health insurance coverage, Americans owe approximately $195 billion in medical debt. That’s more than student loans, auto loans, and credit card debt. In fact, medical debt is nearly more than all three of those categories combined.
When healthcare organizations offer multiple payment options, financial roadblocks are reduced. Providing payment plans empowers the patient to take ownership of their payment responsibility. Customizable payment plans and ‘buy now, pay later’ options have been very popular among Gen-Z and Millenials. One study found that 35.1% of Gen-Z and 41.3% of Millenials admitted to utilizing these payment tools at least occasionally.
The younger demographics are the patients that tend to avoid medical care due to cost, so payment plans may be the answer to engaging younger patients.
#4: EMR Payment Integration
Front- and back-end integration makes it easier for healthcare professionals to focus on what’s most important: providing quality care to patients. Providers who integrate their EMR with health payment gateways and processors can gain staff efficiencies, plus provide a seamless, convenient payment experience for patients.
#5: Secure Payment Processing
Patient engagement and the patient financial experience both have an underlying background of expected privacy and security. In the wake of new technological developments every day, patients should feel confident that their information is protected. It is critical to make sure your payment provider is serious about security and protecting information. There are many ways to ensure your sensitive information is protected:
- HIPAA Privacy Rules Compliance
- National Automated Clearing House Association (NACHA) Operating Rules Compliance
- Certified Level-1 Service Provider with PCI DSS
- Visa Global Registry of Service Provider
- Mastercard Site Data Protection Compliant Registered Service Provider
- EMV Device and Processor Compliance
#6: Automated Payment Reminders
Even the most responsible, engaged consumers can be forgetful. Chances are, almost everyone has forgotten to make a payment or two at some point.
Meeting patients where they are—simplifying the payment process by offering automated payment reminders—can be a great way to improve patient engagement and its effects on the revenue cycle. One study found that providing SMS reminders for patients was an inexpensive, easily implemented, and automatable method to increase medical compliance and appointment attendance.
Appointment reminders have been used by healthcare for some time, so integrating payments into this part of a provider’s workflow seems to make sense.
#7: Point-of-Sale Payment Solutions
Allowing patients to pre-pay for their care, or pay at the time of service, is becoming a requirement for most providers looking to upgrade or replace their current payment process.
The best approach to this is to establish clear policies, prioritize staff training, and offer financial counseling coupled with flexible payment options. Different patients will want different ways to pay. Offering flexible payment options saves time and money for both healthcare providers and the patient while increasing revenue and patient engagement. Organizations can combine pre-pay, mobile, and point-of-sale payment options to cater to patients of all financial backgrounds.
#8: Automated Payment Reconciliation
Accounting in healthcare can be taxing for administrative and billing staff. Automating the reconciliation process allows providers to reduce manual entry and human error.
Investing in efficient payment processes and automating the reconciliation process can reduce manual entry related to posting both patient and non-patient payments. Some companies in this market segment will leverage technology to even post payments back directly into the provider’s accounting system saving countless man-hours and allowing most vendors in this field to provide summary-level reporting. This allows staff at the hospital to focus on more productive activities such as caring for patients and improving the patient experience.
HealthPay24: A Technology-Forward System
The technological developments from the last decade offer the opportunity to automate and streamline various aspects of the patient experience. Keeping patients engaged is key to ensuring the payment process is simple and comprehensive.
HealthPay24’s patient payment solution offers a comprehensive system that automates workflows and processes and synthesizes medical bills, making payments more convenient for the patient and provider. By logging in to the payment portal, patients can:
- Make quick online payments on new and prior balances.
- Set up payment plans.
- Enroll in electronic notifications.
- Enroll in Text payment options.
- Take advantage of discounts offered by your healthcare organization.
- Enjoy enhanced security.
A Patient Engagement Solution for Your Organization
HealthPay24 has been a leader in the healthcare sector for over twenty years. Our business is built on trust, dedication, and some good old-fashioned teamwork. Optimize your organization’s patient financial experience by implementing HealthPay24’s innovative and comprehensive payment solutions. Visit https://www.healthpay24.com to learn more, or request a demo to join the growing number of providers using the HealthPay24 patient engagement solution.