DEEP DIVE
How payment efficiency in healthcare fuels organizational resilience
DEEP DIVE
How payment efficiency in healthcare fuels organizational resilience
Healthcare / Introduction / Deep dive
Healthcare organizations are facing challenging conditions in 2023. From minimizing data security risks to enhancing the patient experience through simplified payments, healthcare organizations are taking strategic steps to boost efficiency, satisfy patients and increase their bottom line. External factors such as ongoing inflation rates, labor shortages and internal factors such as operational inefficiency and shifting patient expectations contribute to the challenging healthcare landscape.
In the most recent U.S. Bank survey carried out with FT Longitude, finance leaders from hospitals and healthcare systems share their perspectives on the state of their payment processes and how they’re working to improve resiliency through advanced payment technology.
The ‘Why?’ behind strategic payments transformation
Half of all financial leaders surveyed know their organizations can only become resilient by evolving payment processes. Historically, healthcare organizations have not integrated payments and patient information. Instead, they used multiple platforms and solutions to gather and process data, causing information gaps and workflow redundancies.
Now, the push to integrate payments processes with patient portals and electronic health records (EHR) is getting stronger because of growing market competition, and this is driving more organizations to secure, simplify and enhance the patient experience. A majority of healthcare finance leaders say they’re making changes to their payment strategy as a response to changing market conditions.
of healthcare leaders say that growing market competition is driving “some or significant” payments transformation in their organization
Competition isn’t their only concern. Finance leaders also recognize the important role payments play in maintaining patient satisfaction. With patients increasingly struggling to cover the cost of care, health systems that invest in expanding the availability of flexible, reliable and secure payment solutions will increase patient loyalty.
of all finance leaders agree that the payment experience can make or break their patient relationships
of healthcare finance leaders believe patients would switch providers if they didn’t feel secure making a payment transaction
Earn trust with transaction security
Although healthcare organizations don’t tend to be payment leaders who are actively implementing payment efficiency solutions, 76% say it’s crucial that their patients feel secure during the payment process. Because patient data contains a wealth of personal, medical and financial information, healthcare organizations are a prime target for cyber criminals.
Today’s consumers across all sectors – retail, government and hospitality – expect businesses to provide excellent security to keep their personal and financial data safe. As healthcare organizations seek new payment acceptance solutions, 56% rank transaction security as the most important factor, followed by consumer payment preference (46%) and service and customer support (37%).
Use advanced technology to improve patient experience
Less than a quarter of healthcare finance leaders say their payment strategies are advanced. Healthcare organizations’ leadership, processes and technology evolve at different rates, but there’s a growing consensus that using technology to enhance the patient experience is essential to remaining competitive and resilient in the marketplace.
However, more than 75% of healthcare leaders say their organization’s payments strategy is falling short.
say they're advanced or very advanced at payment strategy
For some, the lack of a mature payment strategy and the latest technology is affecting both efficiency and patient satisfaction.
say that outdated technology is the biggest roadblock to achieving payment efficiency
have received complaints about poor payment experiences in the past year
Investing in the latest payment technologies can help healthcare organizations to better manage cash flow requirements, fund operations and improve transaction security to create financial stability. It also provides opportunities to boost patient engagement through consumer-friendly amenities such as text reminders, text to pay, digital billing, interactive virtual response (IVR) and patient portals. Finance leaders who are exploring payment strategies that support patient retention and satisfaction say they plan to invest in the following technologies in the next 12 months:
46%
Fraud management tools and technologies
43%
Business intelligence platforms
41%
Real-time payments
These technologies allow healthcare organizations to design a more secure, intuitive and efficient financial experience for patients as well as staff.
Simplifying and modernizing payment acceptance options offers benefits beyond making it easier for patients to pay. When asked about their rationale for optimizing their payment acceptance strategy, 60% of healthcare leaders surveyed said that innovating payment acceptance has or will enable them to expedite cash flow and streamline administration. About half say that streamlining payment processes would reduce the potential for human error and improve accuracy.
Healthcare leaders also indicate that improving payment efficiency would make their employees more effective.
Improving payments efficiency would free up my employees for more strategic projects and initiatives
Improving payments efficiency would allow employees more time to engage in complicated or nuanced patient interactions
Building resilience for healthcare organizations and their patients means shifting to an organization-wide mindset that emphasizes adaptive thinking about technology and how investing in infrastructure and upgrading payments efficiency can create long-term consumer growth, effective operations, patient satisfaction and increased revenue.
Our team can provide payment strategy guidance to hospitals and healthcare organizations that helps to create resilience and achieve long-term goals. To learn more, contact us and download the report.
Find out how your sector can use payments to increase resilience
Find out how your sector can use payments to increase resilience
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