Why health systems are smart to consolidate payments in their EHRs

Under unprecedented pressure to reduce costs and protect patient data, hospitals are finally taking aim at one of the most entrenched inefficiencies in healthcare revenue cycle management — the fragmentation of payment systems.

Many large health systems still juggle multiple merchant processors and payment gateways — a fragmented approach that slows reconciliation, complicates patient payments and introduces new security vulnerabilities.

“It’s chaos for some systems,” says Justin Meany, division manager and head of not-for-profit healthcare at U.S. Bank. “When a billion-dollar system has multiple merchant processors and gateways, it can create problems not just at the point of service, but across the entire patient ecosystem.”

This complexity is increasingly at odds with the financial and operational realities hospitals face. According to Advisory Board, a company that provides research to healthcare leaders, as recently as May 2024, 40% of hospitals were operating in the red, underscoring the urgency for revenue cycle optimization.

An integrated healthcare payment solution

For health systems investing heavily in the optimization of their electronic health record (EHR) systems, integrating consolidated payment solutions into existing workflows has become the logical next step. This can be done using a patient payment portal like U.S. Bank MedEPay™, which processes patient payment transactions directly through EHR platforms like Epic and Cerner.

“The real value comes from having one gateway and one processor — ideally under a single bank,” Meany explains. “When payments are embedded directly into the EHR, the process is tightly aligned — secure, efficient and streamlined across the system.”

An integrated healthcare payment platform doesn’t just reduce operational headaches. It improves reconciliation, accelerates collections and strengthens security posture. The  found that the average cost of a healthcare data breach, at $9.77 million, was the highest of any industry. By linking disparate points of sale — cafeterias, parking garages and gift shops — into a unified infrastructure, hospitals can close security gaps that hackers often exploit. Platforms like U.S. Bank MedEPay use point-to-point encryption and 24/7 monitoring to reduce data breach risks.

Patient experience as a revenue driver

While financial leaders focus on margin pressures, the patient experience is an equally critical consideration. Embedding payment tools within EHR systems in healthcare enables patients to pay on-site with a card, through mobile apps, or via text reminders with direct links — improving their payment experience. “It’s easy, fast and increases the likelihood they’ll actually pay their bill,” Meany says.

For CFOs, that improved patient payment capture directly translates into stronger financial performance. “With the right technology in place, health systems have increased their patient payments astronomically,” Meany says. “That’s money you can reinvest into operations, capital projects or quality initiatives.”

A strategic lever for CFOs

EHR-embedded payment consolidation is no longer just a tactical IT decision; it’s a strategic lever for healthcare finance leaders.

With cleaner reconciliation, reduced accounts receivable days and stronger compliance safeguards, hospitals can not only shore up their margins but also future-proof their operations against mounting security and consumer experience pressures.

As Meany sums it up: “It’s a lever for improving financial performance and operational efficiency. With the right banking partner, CFOs can transform payments from a liability into a strategic asset.”

No matter where you are on your journey to digitize the revenue cycle, we can help. Our industry experts help healthcare organizations navigate challenges and make changes to refine processes. Request a call to learn how we can help you transform payments to achieve business goals and create a better patient experience.