The healthcare landscape is important, complex, and slowly evolving.
But in an industry notorious for slow technology adoption, healthcare providers are being forced to overhaul their payment systems as digital-first solutions become the norm. Against this backdrop, the critical role of cooperation between banks and healthcare providers has taken on new importance.
Adam Keck, executive vice president and director of managed service solutions at Fifth Third Bank, said that banks need to be able to manage “provider health and provider needs,” including payments activities, working capital management, and asset management. You can see 360 degrees,” he told PYMNTS. .
In today's dynamic healthcare environment, payment processes and collections are becoming increasingly complex due to a variety of factors, from the digitization of remittances to changing patient expectations. Keck said banks play a critical role in helping healthcare providers innovate responsibly and balance efficiency with regulatory compliance.
And as fintech companies push the limits of innovation, banks are realizing they need to rethink how they can responsibly and innovatively deliver value to their healthcare customers.
“Innovation and efficiency are one thing, but you also have to consider the regulatory environment,” Keck said.
In this regard, banks need to help providers streamline their partnerships and manage the complex ecosystems within which they operate, especially those with fragmented systems as a result of relationships with multiple banks or mergers and acquisitions. We have the unique qualifications to support you.
Achieving better medical care through digital innovation
Keck acknowledged that despite the growing movement toward digitization, paper processes remain a challenge, especially in the medical field. Paper-based documents such as Explanation of Benefits (EOB) and denial letters remain a major friction point for healthcare providers. Even though more organizations are moving to electronic payments, these remaining paper documents introduce complexity that hinders efficiency.
For providers still relying on paper, Keck advised them to focus on technology that can digitize and automate back-office workflows.
“We can't change how we work with insurance companies, but we can automate back-office processes,” he said.
This approach is especially important given the reluctance of some payers, including Medicare and Medicaid, to fully adopt electronic transfer processes.
“Every time you take paper out of the ecosystem, you add value,” Keck said.
Still, he was quick to point out that simply moving to electronic processes does not automatically lead to automation.
“Electronic does not mean automated,” Keck said, stressing that even when payments are processed digitally, manual reconciliation and workflow complexities remain. “Really, to eliminate manual workarounds, how can we leverage that and make it work in our existing workflows?”
Digitization is an important step forward, but providers must focus on end-to-end automation to truly streamline the payment process. The challenge for many providers is reconciling wire transfers and electronic funds transfers (EFT) and integrating this information back into the electronic medical record (EMR) and general ledger. The fragmentation of these systems continues to create inefficiencies, slowing payment cycles and increasing operational burden.
The future of patient experience
One of the most significant changes in healthcare payment is the increased financial responsibility placed on patients. As patient out-of-pocket costs increase, healthcare providers face the dual challenge of collecting payments while maintaining patient satisfaction.
As Keck noted, this change has lengthened payment cycles and increased reputational risk for health care providers, particularly when it comes to medical debt collection.
“Yes, it is clear that quality of care is the biggest constraint for patients, but people choose doctors and practices based on ease of doing business, ease of payment, and clear and concise billing. ,” he said.
For healthcare providers, meeting these expectations requires a balance between flexibility and operational efficiency. Keck warned that offering too many disparate payment options without proper integration can further burden the back office. Instead, providers should adopt scalable solutions that offer choice while ensuring all payment methods are seamlessly integrated into the system.
As health care becomes increasingly consumerized, patient expectations for a seamless digital experience are increasing. Keck noted that patients now expect an “Amazon-like experience” when it comes to paying for their medical bills, including flexible payment options and a streamlined digital interface.
Patients want the ability to pay through their preferred channels, including checks, digital wallets like Venmo and PayPal, and other mobile payment options, and choice is a key factor in patient satisfaction.
Streamlining medical payments
Looking to the future, Keck said he sees significant opportunities for innovation in healthcare payments. Technologies such as artificial intelligence (AI) and machine learning are expected to play a central role in creating closer integration between payers and providers. These technologies can also enhance straight-through processing and reduce delays and errors in payment cycles.
Account-to-account payments are also an area of growth. As patients' financial burdens increase, healthcare providers may increase card-based payments and increase merchant fees. Keck suggested that account-to-account payments could allow providers to reduce these costs while offering faster payment processing.
As healthcare providers increasingly turn to digital solutions, choosing the right payment partner is critical. Keck identified several key factors for providers to consider when evaluating potential partners, including integration with EMR systems, scalability for mergers and acquisitions, and the ability to handle multiple banking relationships. I did.
Simplification is also an important consideration. By integrating multiple systems and banking relationships, healthcare providers can reduce inefficiencies and improve cash flow. This is a priority for many health systems with significant cash flow constraints.
Keck also highlighted the potential for digital payments to serve as a touchpoint for patient engagement. For example, offering digital refunds or opportunities for patients to make charitable donations through the health system can foster loyalty and create a more positive patient experience.
Ultimately, he added, the future of the sector will be determined by the critical role of bank-provider partnerships, the shift from paper to electronic payments, and the growing importance of patient-centric payment solutions.
