Medical patients' average single deductible almost doubled between 2010 and 2020. Trends predict that the next decade will continue this rise in patient financial responsibility. Confusing bills and inflexible payment options add to this problem. As such, patients struggle to pay for services, and practices frequently must resort to charity write-offs.
Financial technology (fintech) makes bills easier to pay and more understandable for patients. Fintech companies use artificial intelligence and machine learning to boost efficiency and fill knowledge holes. As a result, medical practices are adopting this technology at record rates. Usage rose from 16% in 2015 to 64% in 2019.
Here are the top four ways fintech is enhancing healthcare.
Different patients have unique payment abilities. Because of this, adopting a one-size solution is ineffective. Patients say they prefer creative payment plans that offer more flexibility. Fintech provides a personalized payment plan that morphs to fit a patient’s needs. Doing so prompts quicker and more reliable payments.
Additionally, fintech excels at making the payment process easy. Consumers can link up the credit card of their choice to the application or directly wire from a bank account. Also, mobile payment applications (like Applepay, Amazonpay etc.) are simple for many people to understand and use. The instant nature of this feature makes payments far quicker than previously.
Healthcare bills have had a unique lack of price transparency. Physicians frequently administer services before a patient knows how much they will cost. While politicians attempt to mandate transparency, patients still struggle with price clarity. Thankfully, fintech offers solutions with easier lending and financing options. Giving this information upfront manages a patient’s expectations and eases tension.
A 2020 study shows that 10% of medical consumers refuse to pay their bills if they fail to understand the administrative process. Confusing healthcare terminology paired with confusing insurance terminology makes many bills incomprehensible. Fintech breaks down this jargon and sections parts off to clearly distinguish charges.
Additionally, the patients with the highest bills frequently see multiple health professionals. As such, their financial paperwork is a mess that is a nightmare to untangle. Fintech organizes all of these different health professionals into a neat, accessible list.
With the increased burden medical practices must place on their consumers, many providers find their patient relationships strained. Providing manageable payment options helps to temper consumer reactions to bills. Fintech achieves this goal by offering long-term, low-interest financing. This feature disperses the tension of a high price tag over months or years.
Healthcare providers fail to collect a significant portion of their owed revenue. Estimates range as low as 20% for the average collection rate. Because fintech simplifies financing, practices that support fintech adoption should expect a sharp increase in pay rates. This rise will boost practices’ abilities to provide high-quality care.
Medical personnel constantly fear that work burnout will overwhelm their practice. The increasing demand for healthcare services outweighs the number of recruits that join the field.
A 2018 survey shows the time drain this demand places on physicians. Of those surveyed, 70% of doctors report spending ten or more hours a week on paperwork. As such, healthcare workers are desperately seeking time-saving technology. Fintech satisfies this desire.
Programs can speed the billing and administrative process. These systems are more accurate than humans. Therefore, using them helps avoid common, time-costly errors. Additionally, online programs and apps collect a large amount of data for practices. This information lets providers make decisions that would otherwise take lengthy research.
With proper use of fintech, medical professionals can spend less time on administration and more time on quality care.
PlutusHealth makes it easier for your practice to manage the modern financial landscape. We address our clients’ most frustrating problems by automating repetitive revenue cycle management tasks and processes.
If you are struggling with billing, collection, and management, our expert team takes care to get the fastest reimbursement possible and increase your practice's performance. Schedule a call to learn more.
1. Different payment types give patients the best option for their situation.
2. Patients have access to understandable financial information.
3. Clear payment plans rebuild patients’ trust in their medical providers.
4. Fintech reduces the time medical staff needs to spend on administration.
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