How do patients feel about today’s healthcare costs? Some eye-opening stats reveal:
- Thirty-eight percent of Americans deferred healthcare because of cost. Although this number looks low, it’s at an all-time high, according to the report.
- The Kaiser Family Foundation found that nearly half of US adults experience challenges when financing their health care.
To combat this issue, providers need solutions that manage care costs from multiple angles. One reason? According to Deloitte, the patient experience is linked to economic performance.
In other words, quality care equals better financial health for your practice.
Staying informed about the latest payment trends can help providers address patients’ cost concerns, improve their satisfaction, and streamline operations. This article explores five healthcare payment trends every provider needs to know, focusing on key shifts and their effects on patients and providers.
1. Growth of Digital Payments
The healthcare industry is witnessing a clear demand for digital payment methods. According to one survey:
- Eighty-five percent of consumers prefer an electronic payment method for their medical bills.
- Thirty-seven percent prefer to pay via an online portal.
- Thirty-two percent want to use a mobile app.
Despite these statistics, 77% of providers say that paper medical bills are the main method of collecting patient payments.
If providers want to compete, they must change their trajectory and use digital solutions that allow patients to pay medical bills using methods they prefer.
Key trend insights:
Convenience
Many digital payment tools, such as Text-to-Pay services and digital wallets (e-wallets), are gaining traction among patients. Digital payment systems already integrated with electronic health records (EHRs) allow for smoother financial transactions.
For example, the EHR platform DrChrono offers an integrated Payments solution in which patients can pay online and on their mobile devices. Automated patient statements and payment acceptance through this tool also simplify and streamline financial workflows.
Cost-effective
Providers can also save labor costs by switching to digital payments. According to the AFP Payments Cost Benchmarking Survey, the average price of writing a check is $4, and sending checks has the highest labor cost compared to other forms of payment.
Security
Digital payments feature advanced encryption technologies and built-in fraud controls, ensuring patient payment information remains secure.
2. Consumer-Driven Healthcare and Alternative Payment Models
PYMNTS data reveal that 60% of patients would consider switching providers after receiving a surprise bill or incorrect cost estimate. With these challenges, patients today are more informed and involved in their healthcare decisions.
This shift towards consumer-driven healthcare means providers must offer upfront pricing and flexible payment plans to meet patient expectations and maintain their loyalty.
Key trend insights:
Price transparency
The Hospital Price Transparency rule requires US hospitals to publish prices for services. These modifications ensure pricing information is easy for patients to access. With this knowledge, equipping patients with detailed cost estimates before treatment can enhance trust and satisfaction.
Flexibility
Offering lower-cost payment plans and options, such as electronic automated clearing house (ACH), is making healthcare more affordable for patients. For example, some providers offer financing options with 0% interest, including medical credit cards or payment plans.
Patient communication
Educating patients about their financial responsibilities and available payment options can lead to more timely payments and improved patient-provider relationships.
3. Use of AI in Medical Billing
Artificial intelligence (AI) is making waves in medical practices by automating different administrative tasks, including medical billing and insurance claims processing. This tool reduces staff burden and streamlines digital front- and back-office workflows.
Key trend insights:
Accuracy
AI-powered solutions minimize errors in billing and claims, leading to more accurate and timely reimbursements. DrChrono’s medical billing software helps improve clean claim rates by eliminating multiple data entries and manual errors. Enter patient information once, and the data will automatically pass to billing.
Efficiency
Automated systems can process claims faster, resulting in quicker payments for providers. For instance, practice management software like CollborateMD offers a Real-Time Eligibility feature that allows medical staff to verify patient insurance and benefit information in seconds.
Proactive analytics
AI can analyze data trends to identify patterns and predict potential issues in the billing and claims process.
4. Shift Towards Value-Based Payments
The healthcare industry is currently transitioning from the traditional fee-for-service approach to value-based care (VBC) practices. VBC focuses on patient outcomes rather than the volume of services provided.
This model ties payments to the quality of care delivered, incentivizing healthcare providers to improve patient health outcomes and reduce costs.
Key trend insights:
Cost incentives
Financial bonuses can be awarded to providers who demonstrate high-quality care and efficient resource utilization. For example, DrChrono offers the Merit-based Incentive Payment System, or MIPS Assist program, which helps avoid negative payment penalties.
This is a performance-based program where eligible clinicians may earn positive or negative payment adjustments for their services to Medicare patients.
Performance metrics and accountability
Providers are rewarded based on key performance indicators such as patient satisfaction, readmission rates, and preventive measures. VBC also holds providers accountable for delivering high-quality care, fostering a culture of ongoing improvement.
Collaboration
Value-based care encourages collaboration among healthcare providers, payers, and patients to achieve better health outcomes.
5. Expansion of Telehealth Services
The COVID-19 pandemic increased the adoption of telehealth services, and this trend has made its indelible mark. With more patients relying on virtual consultations, the demand for digital payment solutions continues to surge.
Key trend insights:
Removes barriers
Patients who previously found it challenging to see a healthcare professional due to geographical, physical, or logistical reasons now have easier access.
Cost savings
Telehealth can reduce the costs associated with patient transportation, practice overheads, and missed appointments. According to JAMA Network Open, telehealth was associated with an average cost savings of between $147 and $186 per patient visit.
Data collection and monitoring
Wearable devices and home monitoring tools can seamlessly integrate with telehealth platforms, providing real-time data to healthcare providers.
Shift in care models
There’s a move from reactive healthcare (treating issues as they happen) to proactive and preventative care facilitated by the continuous monitoring capabilities of telehealth tools.
What’s Next?
The messaging here is pretty straightforward –stay ahead of payment trends to thrive in the modern healthcare landscape. By adopting digital payment solutions, embracing value-based care, leveraging AI and telehealth technologies, and catering to the needs of informed patients, providers can compete in the changing landscape, improve their bottom line, and deliver superior patient care.