Written by Caleb Varoga on May 13, 2024
The Rising Demand for Mobile Healthcare Payments
Redefining the Patient Financial Experience
The landscape of how patients settle their financial obligations is continually evolving. From pre-payment on estimation, to dynamic payment plan presentment to meet unique patient needs, health systems are consistently evolving to meet demand while targeting the best ways to provide frictionless payment interactions where patients are most likely to take action.
In the year following COVID-19, more than nine in ten consumers reported using some form of digital or mobile payment, and these trends are poised to significantly reshape healthcare transactions. Benefits extend beyond mere convenience to include enhanced patient satisfaction, improved financial health for providers, and a reduction in administrative burdens – highlighting the importance for healthcare providers to develop, implement, and evolve their mobile payment strategy.
Identifying How to Best Enhance Patient Satisfaction While Mitigating the Risk of Bad Debt
The introduction of mobile and digital payments has helped providers streamline the payment process, offering patients a seamless and quick method to handle their medical bills more like their experiences in retail and banking. This convenience not only meets but often exceeds patient expectations, fostering greater loyalty and satisfaction. From our annual Patient Payment Technology Report, a notable 66% of patients prefer receiving billing and payment reminders via email or text, highlighting the growing preference for digital communication methods that complement mobile-friendly payment solutions.
One of the more significant challenges healthcare providers face is managing bad debt — unpaid patient dues that can severely impact the financial metrics that often define success for revenue cycle teams. Offering a comprehensive mobile payments solution can help mitigate this risk by facilitating faster and more frequent patient payments, helping to dramatically improve cash flow. The on-demand nature of mobile transactions means payments can be processed and cleared quickly, reducing the average days in A/R and enhancing your system’s financial health.
Reducing Administrative Load in Support of the Growing Hybrid Healthcare Delivery Model
Mobile payment solutions can automate many aspects of the billing and payment process, from delivering automatic payment reminders to patients to offering the ability to process transactions immediately in response to a reminder. Automation like this can decrease the workload on staff, allowing them to focus on more critical tasks like patient care and service improvement. According to our report, the integration of mobile payments into existing Electronic Health Record (EHR) systems like Cerner, Epic, and Meditech can further streamline operations, demonstrating the operational benefits of mobile payment technologies.
As healthcare continues to embrace hybrid models combining in-person and virtual care with a hybrid working model for revenue cycle and billing employees, the collection process must also evolve to support varied service delivery methods. Mobile payments are inherently flexible, providing a consistent and secure way for patients to pay, whether they are at home or in the clinic. The ability to handle payments through a mobile platform supports this blend of physical and virtual care, ensuring that the payment experience is as smooth as the transition between different modes of healthcare delivery. And by implementing these tools, it can be easier than ever for revenue cycle teams to interface directly with patients remotely through secure payment links, on-demand reminders, and more.
The Growing Preference for Text-to-Pay and Digital Statements
The report highlights a significant patient interest in text-to-pay options and digital statements, with an increasing number of patients showing a preference for managing their financial obligations via their most used device – their phone. This trend is consistent with the broader movement towards mobile-first (but not mobile-only) strategies across all sectors, driven by the convenience and efficiency of managing transactions on-the-go.
Looking Ahead
The move towards mobile payments in healthcare is not just a trend but a necessary evolution to align with global digitalization shifts. Providers who adopt and implement these solutions now will be better positioned to meet the expectations of modern consumers, who increasingly judge their healthcare experience by the standards of customer service they encounter elsewhere.
As we look towards the second half of 2024 and beyond, the integration of advanced payment technologies into healthcare systems will be crucial for enhancing patient satisfaction, improving financial health for providers, and reducing administrative burdens. Healthcare providers must continue to adapt to these changes proactively, ensuring that their payment systems can accommodate the growing demand for mobile payment options, securing their place at the forefront of healthcare innovation.