What does it mean to use digital payments in healthcare, and how can you benefit from this technology as a provider? What are the pros and cons?
Keep reading – that’s what we are going to dive deeper into.
A quick definition of digital payments
First things first: What are digital payments, anyway?
As the name suggests, digital payments are payments that are made electronically rather than by check, for example. And, in recent years, digital payments have been taking over all kinds of industries, from retail to travel.
So, unsurprisingly, the healthcare industry is no exception.
Here, digital payments can facilitate things like patient payments, insurance claims, and provider reimbursements.
Alright, now let’s take a look at some specific benefits of harnessing digital payments in healthcare.
Benefits of digital payments for healthcare providers
Here are a few reasons why using digital payments makes sense.
Improved efficiency
Want to make your billing and payment processes more efficient? Then digital payments are a great way to do that.
Wondering why that is?
Because instead of having to deal with paper checks and manual invoicing, digitizing your payment processes means you can handle transactions online, all in one place.
Ultimately, this saves you time as a provider, and it also reduces the risk of human error that can add unnecessary hassle to financial transactions.
Plus, you can integrate digital payments with your electronic health records (EHR) system or practice management software.
So, what does that look like?
Here’s an example: When patients receive any type of healthcare service, you as a healthcare provider can consult their medical records and generate invoices right from a computer.
And once patients get a notification that they’ve been billed, they can simply sign in to their patient portal and pay directly using their preferred digital payment method – without having to send a check in the mail.
Cost savings
How can digital payments help you save money? Here are a few ways:
Reduced admin costs – Using paper-based payment processes used to make sense because it was the only option. But these days?
Not so much. Using paper means data entry has to be done manually, which is time-consuming. So, by digitizing payments, employees can work on more important things, which ultimately saves time and money.
Simplified reporting and analytics: By harnessing digital payment technology, you can have access to things like transaction data and reports. And as a healthcare provider, this can be incredibly valuable. Why? Because it can help you see exactly what your financial position is and how you can make operational changes in order to cut costs.
Faster payment processing: Unsurprisingly, digital payments can be processed much faster than paper checks. So, when patients use digital payments to pay their healthcare bills, this ultimately means you get paid quicker – thereby reducing manpower and time needed to collect payments.
Enhanced patient experience
These days, more and more people are starting to use digital payment technology, which means making it an option in healthcare is a huge advantage.
And as a provider, you can send patients payment reminders digitally, which makes it easier for people to keep track of what they owe.
Alright, now that we’ve talked about some clear benefits of using digital payments in the healthcare space, let’s talk about some downsides.
Drawbacks of digital payments in healthcare
Like with anything, there are pros and cons to using digital payments. Here are a few cons.
Security threats
One concern with using digital payments in the healthcare space is the risk of security breaches that could compromise sensitive patient information.
The good news?
Cybersecurity is getting more advanced, which means hacking into healthcare portals is becoming more difficult.
Accessibility concerns
Often, patients who need healthcare the most are the elderly and people with disabilities. What this means is that some patient populations might not be familiar with payment technology or know how to use it.
One way to overcome this challenge, though, is to offer information on how to pay digitally – while still keeping other payment options open for those who might not have access to a computer.
Technical issues
Payment platforms, like any other digital system, don’t work 100 percent of the time. From technical glitches to spotty internet, unforeseen problems slow down processing time and lead to frustrated patients.
Ultimately, these types of issues aren’t the end of the world, but they are a downside to digitizing payments.
Next steps
So, there you have it! Now you know more about using digital payments in healthcare and some pros and cons associated with their use.
Ready to transform the customer experience and streamline your operations?
At Genius Avenue, we’re all about harnessing technology to address challenges healthcare providers face.
