74% of Healthcare Payers Risk Fines From Manual Payment Processes

A recent PYMNTS report, “Healthcare Payments Need Modernization to Drive Financial Health,” dives into the imperative for the healthcare sector to transition away from its entrenched manual payment processes toward sophisticated digital solutions. It details how these outdated systems don’t just create inefficiencies but actively strain revenue. The analysis contrasts healthcare’s slow adoption with other industries that have embraced digital tools, underscoring an urgent need for modernization across the board.

The report outlines how modernizing payments is not merely a technological upgrade but a strategic move for healthcare providers to improve their cash flow, mitigate various financial risks, and streamline their daily operations.

On the patient side, the benefits are equally compelling: Digital transactions offer hassle-free experiences, which are a driver for patient satisfaction and, ultimately, patient retention.

The analysis notes that while the sector is indeed poised for rapid growth, and players are already adopting modernized systems, adoption gaps persist, presenting opportunities for innovation and investment.

Key findings from the report highlight the current state and future trajectory:

• More than two-thirds (67%) of executives and decision-makers in healthcare payer organizations report that their firms’ manual payment platforms are actively reducing efficiency. Additionally, nearly three-quarters (74%) indicated these platforms increased their organizations’ exposure to risks of regulatory fines and penalties.
• Nearly one-quarter (24%) of surveyed U.S. consumers stated they would consider switching healthcare providers if they were not offered their preferred payment method, underscoring the direct link between payment flexibility and patient loyalty.
• The global market for healthcare digital payments is projected to grow at a compound annual growth rate of 19% between 2024 and 2030, signaling a significant shift and market opportunity toward digital solutions.

Beyond these benefits, the report delves into the obstacles impeding faster digital payments adoption within healthcare, acknowledging that many businesses perceive risks, costs and systemic challenges in transforming their payment infrastructures. Perceived complexities around system maintenance and the constant need to evolve technologies to counter cyberthreats and ensure compliance are cited as major deterrents, making in-house optimization overwhelming for many providers.

Saurabh Joshi, president of CSG Forte, interviewed in the report, stresses that while faster payments improve cash flow and reduce time spent on overdue collections, the advantages of modernization extend far beyond mere speed. He highlights enhanced security and compliance, better integration with electronic health record systems, and overall improved patient satisfaction as equally vital outcomes.

The report advocates for healthcare providers to engage with trusted payment partners. It posits that because healthcare payments are uniquely complex, selecting partners with specific industry experience is crucial for reducing risk, supporting revenue, and elevating patient payment experiences.

Such partners can offer custom-built solutions that are also backward-compatible with legacy platforms, facilitating integration across various generations of healthcare technologies. These solutions often include modular designs, easy integration, and multichannel processing capabilities (web, mobile, phone, in-office point of sale), along with features like the ability for patients to split payments.

The report concludes that embracing these digital payment solutions is no longer just an option but a strategic necessity for healthcare providers to streamline operations, enhance financial health, and meet evolving patient expectations.