While many sectors have adopted a rapid flow of digital innovation, the majority of the US healthcare industry is locked into outdated payment practices, creating inefficiencies and straining financial health.
A recent report, “Healthcare Payments Need Modernization to Promote Financial Health,” reveals that manual payment systems are significantly hindering the efficiency and revenue generation of healthcare providers across the United States. The analysis reveals that despite the rapid adoption of digital tools by other industries, delays in healthcare in this sector underscore the urgent need for change. Digital payments are presented as a vital solution poised to revolutionize the sector by improving critical cash flows and reducing financial risks as well as increasing overall patient satisfaction. While players in key industry are increasingly integrating modernized systems, the report notes that adoption gaps are important and show significant opportunities for further innovation and growth.
Key data points in the report include:
67% of executives and decision makers in healthcare payer organizations report that the company's manual payment platform is decreasing efficiency. This highlights the broad bottlenecks within the industry's management business. Almost three-quarters of these executives (74%) say that manual payment platforms put organizations at risk of regulatory fines and penalties. This highlights the critical compliance and financial vulnerabilities associated with outdated systems. The impact extends to consumer experience, with 33% of healthcare consumers surveyed expressing their dissatisfaction when modern payment solutions such as digital wallets and mobile payments are not available. In particular, 24% of these consumers consider switching providers when payment priorities are not available, and highlight the important link between payment convenience and patient retention.
Beyond these core findings, this report delves into broader implications and strategic pathways for modernization. As Saurabh Joshi, president of CSG Forte, highlighted by Saurabh Joshi, who interviewed the report, the benefits of digital conversion far exceed just payment speeds. He emphasizes that modernized payment systems also provide enhanced security and compliance, better integration with electronic health record systems, and improved patient satisfaction. Non-digit methods such as cash and paper checks introduce cascades of operational complexity, including manual processing errors, delays in restructuring, and increased risk of security and fraud.
Hesitant to adopt these innovations often results from perceived risks, advance costs and difficult tasks of system maintenance. However, this report strongly advises healthcare providers to engage trustworthy payment partners who provide industry-specific solutions. Such partners can navigate the unique complexity of healthcare payments, provide advice on the best process, be system-compliant, equipped with the latest technology, and also provide backward compatibility with legacy platforms.
Ultimately, the transition to modern payment technologies is presented not merely as an option but as a strategic imperative for sustainable success, allowing providers to maintain future operations, reduce inefficiencies and strengthen valuable patient relationships. Alexander Paulll, Vice President of Global Merchant Services at American Express, strengthens this perspective and notes that modern payment solutions are crucial for providers to improve operational efficiency, reduce risk and tailor evolving patient preferences.
