The U.S. healthcare industry has not yet recovered from the changes that the start of the COVID-19 pandemic brought on. As a result, many independent practices have suffered a decrease in revenue. McKinsey reports that provider profit pools declined due to volume declines and payer mix changes.
Getting paid — especially by patients — for procedures performed can be challenging. By the time the bill has passed through insurance and reaches the patient, paying it is not often top of mind. This delay, combined with the systemic strain on patients’ overall finances, can make payments challenging. Add to this the time a practice must spend printing, folding, and mailing paper statements, and unpaid balances have long become a serious problem.
Today, the traditional paper statement is on its way out in favor of digital communication, much to the benefit of both healthcare professionals and patients. According to Tebra’s 4th annual Patient Perspectives report, 52% of patients would prefer to pay their bills online. Yet even with digital billing, many bills remain ignored and unpaid.
How can a practice get paid in a timely manner? Or get paid at all? The answer is the adoption of an automated payment system.
Benefits of automated payment systems
An automated payment system benefits both medical professionals and their patients. Healthcare providers, in particular, will notice the following advantages:
1. More efficient operations
Your staff will spend less time with paper statements or manually entering credit card data into the payment processor for online or over-the-phone payments. They also won’t need to track down patients to collect payment. This allows them to focus on other practice priorities, such as patient care or medical record keeping.
2. Increased payment collection
Automated payment solutions make it more likely that patients will pay in a timely manner. To prevent the likelihood of patients forgetting to pay, automated payment solutions offer them the ability to enroll in autopay. This way, the payment will automatically process. Using the automatic payment solution to offer payment plans to patients who need them can benefit both patients, who can then spread out their payments, and the practice, which will allow staff members to predict revenue more accurately. In turn, the practice secures more of its profits.
3. Better customer experience
Patients who can set up automated payments don’t have to deal with collections phone calls or the frustration of paper statements. They can set up their payments in a couple of clicks and not have to worry about them in the future. Since 63% of consumers would be open to changing healthcare providers for a better payment experience, this offering encourages patient loyalty and also attracts potential new patients.
4. Fewer staff members needed
When you have an automated payment system, you may not need dedicated staff who work on payment collection and patient billing. Hiring fewer people increases revenue by lowering labor costs.
5. Higher staff satisfaction
Just like patients don’t care for the hassles of paper billing and collection problems, healthcare workers don’t enjoy the collections process either. When you can eliminate some of this pressure, you may find that your staff are happier and will remain with your practice for longer..
How to choose the right automated payment solution for your practice
Automated payments help your practice increase revenue. But which of the many options is most suitable for your practice’s needs? As you look for the right fit, consider these factors:
- Types of payment accepted: In addition to credit cards, virtual insurance cards, and ACH payments, consider a system that takes digital wallets like Apple Pay, Google Pay, Venmo, Zelle, or Paypal.
- Integration with existing software: If you have practice management software, ensure the payment system integrates well.
- Compliance: The system must comply with the Digital Information Security in Healthcare Act (DISHA).
- Ease of use: The system needs to be easy and intuitive for both patients and staff to use, or it will add to your frustration rather than serve its purpose.
- Security: Choose a system with robust security protocols to ensure you protect your practice and your patients.
- PCI Compliance: This is the Payment Card Industry Data Security Standard. It ensures the security of patients’ credit card information, minimizing the risk of unauthorized access.
- Customer service: Finally, make sure you get quality customer service from the platform as you learn how to use it for your practice.
As healthcare as an industry becomes increasingly digital, your payment system must follow suit. It’s not enough to take digital payments. If you want to increase your revenue, you must find a way to automate the collections process. Not only will this strategy lessen the number of bad debts you have, but it will also reduce stress on your staff and improve your overall revenue.
Anthony Comfort
Anthony Comfort is Vice President of Product, Revenue Cycle at Tebra, a leading cloud-based healthcare technology platform.
