Trends in healthcare payments for patients and providers

A recent U.S. Bank survey of healthcare consumers and Healthcare Information Technology (HIT) company executives revealed several challenges and opportunities around patient communications and healthcare payment options.

Patients noticed the dramatic transformation of the healthcare payments landscape even before most of them had ever heard of COVID-19, according to a survey of healthcare consumers and executives. In fact, 23 percent of patients said they experienced a change in how and when they’re asked for payment by a provider over the past two years.

The world has certainly changed since U.S. Bank conducted the 2020 Healthcare Payments Insight Survey Report in January. Since that time, the coronavirus pandemic swept across the globe, placing healthcare professionals on the front line of a relentless battle, limiting some clinical services and moving telehealth to the forefront. Yet in this rapidly changing environment, insights into perceptions of the healthcare payments system and patient experience gleaned from this survey seem increasingly relevant.

Knowing the complexities of the industry, and its commitment to caring for customers, U.S. Bank sought to understand how payment methods fit into these overall themes in healthcare. The report provides unique insights by surveying patients and healthcare information technology (HIT) company executives to gather both perspectives and better understand strengths, weaknesses and opportunities for improvement.

Consumers concerned about the affordability of healthcare costs

In this year’s survey, we discovered affordability remains a key concern for healthcare consumers. The majority are taking steps to learn about medical costs ahead of time, which explains why the number of patients who have been surprised by a high medical bill fell from 59 percent in 2019 to 40 percent this year.

When confronted with a higher healthcare bill than they expected, more than half set up a payment plan or applied for financing with the provider. Yet when faced with a high price quote, 27 percent chose to delay or cancel services. Offering payment plan options – and making them better known to patients – may make an impact on these decisions.
 

More patients paying medical bills at the provider’s office

The survey found a majority of providers now ask for a minimum payment or co-pay at the time of service (65 percent), leading to a noticeable change for consumers. This year, 64 percent report paying at the provider’s office, compared to 25 percent just one year earlier. 
 

Paid at the Provider’s Office

Regarding their remaining balances, more than three-quarters pay either before or after receiving just one bill. However, the remaining patients wait for two to three bills (18 percent) or even more (four percent) before they start to pay. It’s a situation that affects providers’ finances and can ultimately impact their ability to provide treatment.

 

HIT executives trying to align with patient and provider payment needs

Payment solutions are a very important part of a tech company’s revenue, and keeping up with the evolution of payments will be essential to any HIT company’s success. The survey identified a number of areas where HIT companies strive to mirror patient and provider needs.

• Nearly all HIT executives say they currently have payments integrated or embedded in their platform (92 percent), up from 71 percent a year ago.
  
  
• Their most common ways to combat security risk are: encryption (70 percent), PCI Data Security Standards compliance (68 percent), chip card devices (44 percent) and tokenization (42 percent). 
  
  
• Artificial intelligence has seen huge growth. This year, 92 percent of HIT company professionals are incorporating it in their platform compared to just 30 percent in 2019. Nearly three-quarters want to better incorporate it within the next two years.

Looking ahead, HIT company professionals point to payments through non-financial services firms, peer-to-peer payments, contactless payments and mobile apps as likely to be adopted by the healthcare industry in the next five years. Nearly a third say self-service payment options are the single greatest opportunity to make further improvements in patient financial engagement in the next five years.

 

About the 2020 Healthcare Insights Survey Report:

The healthcare consumer survey is based on a national sample of 447 adults, 26 years of age or older, living in 43 different states. The healthcare information technology survey is based on a sample of 171 HIT executives.

We hope this year’s report offers insights to help you further improve the financial experience for you, your staff and your patients. As always, our goal is to help your organization simplify, accelerate and improve your revenue cycle so you can continue to thrive in the communities you serve. We are here to help.

 

Download the 2020 Healthcare Payments Insight Survey Report Now»

 

If your healthcare payments system is overworked, perhaps it’s time to get it in shape. Contact us to learn more about efficient payment best practices.