Opportunities for improvements and innovation in healthcare payments

In the current complex healthcare environment, patient loyalty is no longer guaranteed solely by quality care. Rising out-of-pocket costs, confusing billing statements, and a lack of transparency are pushing patients to look for providers who offer better payment experiences. To address these challenges, healthcare providers are investing in integrated digital payment solutions to streamline financial operations, eliminate arduous manual processes and improve patients' financial experiences.

The problem: cost transparency and payment friction

Effective communication and transparency around healthcare costs are essential for improving the payment experience. According to our Healthcare Payments Insight Report, 58% of patients are less than satisfied with the communication they received on healthcare costs and 45% were less than satisfied with the adequacy of information they received about their medical bills.  

For providers, inconsistent payments and administrative burdens not only contribute to revenue loss but also create a negative patient experience. Patients want upfront cost estimates, so they can prepare for and minimize the risk of unexpected bills. When healthcare costs are unclear, patients are less likely to remain loyal to their healthcare providers. By simplifying the payment process and offering better cost transparency, healthcare providers can provide a better financial experience for patients and ultimately boost patient loyalty. How? By integrating with a payment platform that monetizes payments and billing processes.

The solution: leveraging new payment technologies and consistent cost information

Choosing the right payments partner is critical to solving the top challenges that providers face. The right healthcare payment platform can provide the best omnichannel mix to appeal to a provider’s patient base. Here are a few ways an integrated payments platform can alleviate inefficiencies in healthcare and support the payment experience:

• Replace manual processes: Integrating payment systems with EHR creates a unified, streamlined experience that simplifies the payment process and helps decrease administrative burden.
• Streamline workflows: Automated payment options and payment processing increase efficiency and reduce human error.
• Enhance security: Robust digital security practices including point-to-point encryption (P2PE), tokenization, PCI DSS and HIPAA compliance validation, MFA, and secure payments gateways are paramount for protecting patient information.
• Expand payment options: Cater to patient preferences with options like automated payments, mobile payments, and interest-free financing.

Leveraging convenient payment technologies like recurring payments offers a win-win solution to both patients and providers. By enabling patients to break down large medical bills into manageable, automated monthly payments, healthcare organizations can reduce financial stress and improve payment consistency. In fact, 44% of providers surveyed are looking at tools and services to reduce time spent processing and reconciling patient payments in 2024 compared to 2023 (33%).

For healthcare organizations looking to support patient engagement and provide positive payment experiences, there are five critical opportunities to consider:

1. Provide accurate cost information as soon as possible in the treatment process
2. Access to online portals to communicate detailed cost information
3. Improve patient education of payment options, including financing options
4. Offer payment options before the service is provided
5. Store preferred payment methods to facilitate efficient payments

The future of healthcare payments

The future of healthcare payments lies in delivering financial experiences that are convenient, seamless, and patient-centric. Providers that successfully implement recurring payments and consistent cost information will experience better patient satisfaction, improved revenue cycles, and patient loyalty. As healthcare systems continue to evolve, the need to embrace new payment technologies is critical for providers to pave the way for a more efficient and patient-centric ecosystem.

As a leader in the financial services and healthcare industry, we understand the challenges of balancing good patient care with strong business performance. To learn more about the emerging opportunities in healthcare payments, download our Healthcare Payments Insight Report*.

About the survey

The Strawhecker Group* and Elavon conducted a survey of 2000 consumers across the United States to understand their sentiment towards healthcare payments in 2024, what payments they prefer to use for healthcare, and what pain points they experience while paying for healthcare. The survey, conducted between June 20 and June 24, 2024, included feedback from individuals who were over the age of 18 in the United States. The margin of error for those surveyed was +/- 2% at a 95% confidence level. Two attention checks were included within the survey to ensure effortful responding, as well as manual data cleaning to ensure understanding of content. All respondents had visited a hospital, clinic, urgent care center or doctor’s office in the past six months and paid for treatment.

The Strawhecker Group and Elavon also conducted a survey of 320 healthcare providers across the United States to understand their capabilities and plans around healthcare payments in 2024, including what payments they accept and what future changes they plan to make to the payment techniques and services they offer. The survey, conducted between June 21 and July 7, 2024, included feedback from people who work in healthcare who have decision-making power over payment systems in healthcare organizations within the United States. The margin of error for those surveyed was +/- 5% at a 95% confidence level. An attention check was included within the survey to ensure effortful responding, as well as manual data cleaning to ensure understanding of content.