Modernized Payment Options: Is your Payment Technology Meeting Both Patient and Provider Needs?

The modern consumer expects a higher level of digitization from their chosen businesses and service providers, and payment methods are certainly no exception to that digital demand. We live in a world where a café patron can pay for a meal on a smartphone, and where a business owner can reorder and pay for supplies with the click of a single button. That being said, I still find many healthcare providers continuing to use antiquated billing and payment collection methods. With the high number of transactions and billing matters occurring every day in the healthcare industry, as well as the immediate need for contactless payment options in the interest of public health and safety, modernized payment options have become essential in meeting both patient and provider needs.

Modernized payment options let your patients and prospects know that you’re innovative and client-focused, which helps you differentiate your brand from others and foster stronger provider/patient relationships. Your patients are ultimately at the mercy of your chosen payment technology, so any frustrations and barriers they experience can, in turn, decrease your ability to collect payment for the services you provide. Ultimately, by focusing on your client needs, such as transparency, accessibility, and flexibility, you can effectively and simultaneously serve your practice’s own business needs.

Implementing Payment Options that Engage

There are hard truths inherent to every industry; for healthcare, one of which being that medical payment obligations are not always a patient’s top priority. Providers can’t assume their patients will be proactive or remain on top of open balances and payment due dates, so implementing engaging payment options is imperative. As a healthcare provider, you understand a common industry concern: Once the patient leaves the office, will we be successful in collecting the balance due? Options like in-office contactless and wallet payments may increase your ability to collect at the time service is provided. 

Once a patient leaves the office, and a service charge becomes an outstanding balance, there are other engaging payment options. According to a 2017 survey performed by MGMA and Navicure, only 25% of providers were using credit-card-on-file systems even though this was the preferred method, for payments of up to $200, for the patients surveyed. Of those surveyed, 52% of patients preferred electronic billing, yet 77% of practices were still sending paper bills. In addition to the obvious waste-reduction benefits, eStatements provide for faster delivery and easier tracking. 

A great deal of billing frustrations boil down to convenience and accessibility. Mobile options, like text-to-pay, snap-to-pay, QR Codes that redirect to patient portals, can encourage patients to pay, as they can quickly and conveniently pay when it works best for them. 

Additional Payment Model Considerations

Patients often find their medical bills to be overwhelming. Practices may consider implementing a deferred payment program as part of their overall payment model. It may be advantageous to use this program in conjunction with your card-on-file payment technology. Your practice can obtain patient authorization that allows you to charge smaller amounts over a longer period of time. If you’re not using card-on-file technology, consider email notification and reminder options. When patients have greater awareness, the likelihood of bill payment increases.

Automation can increase efficiency and your ability to collect in-office and outstanding balances, while decreasing the time and resources involved in your billing and collection efforts. In addition, modernizing your practice’s payment model can actually promote an overall improvement to the quality of care you’re able to provide. Your practice may look into value-based performance payment models, as opposed to fee-for-service payment models. Through shared savings programs and performance-based contracts, the providers among your practice are incentivized to increase their accountability for quality and cost results.

Contact Livingston & Haynes

Whether you are starting a new business, planning to expand, improving your operations and efficiency, or hoping to increase your bottom line, you need an industry-savvy accounting team. My team at L&H are healthcare industry leaders helping sole practitioners, group medical practices, and nursing homes stay ahead of the game by developing a strategic plan that focuses on every aspect of clinical and billing operations. If you’re ready to take the next step, contact me today. I look forward to working with your practice.

Maria Bunker, CPA became a partner at Livingston & Haynes in 2017. She specializes in audits and tax planning and has worked with clients across a wide range of industries.