Categories: Healthcare

Getting A Handle On A Healthcare Payments Fix

We have come a long way from the days when patients in the U.S. did not have to foot all that much for healthcare — when it came to doctor visits and the like. How small was the out-of-pocket? About 5 percent of the bill. Now? It’s 20 percent.

Along the way, patients have been paying higher deductibles, and with crushing healthcare expenses, some beleaguered citizens are finding it hard to pay on time, if they pay at all. The result is that healthcare companies have to initiate a paper-chase to get paid. The write-offs are about $60 billion.

Against that backdrop, healthcare itself is changing — at least the business model.

From in-person visits to telemedicine, we may become less of a nation spending time in waiting rooms and rather doing diagnoses over bits and bytes. Elsewhere, the concierge model is getting adapted and adopted.

What might this mean for healthcare payments? As Bill Lodes, EVP of First American, told PYMNTS’ Karen Webster in the latest Topic TBD, payment models need to do some catch up. The way we pay is shifting, and mobile is making inroads. With more payments paid upfront before anything gets done in surgery or at the doctor’s office, a recurring payment arrangement, with cards on file, may make sense. Portals become important.

The paper statements? The billing statements and the “this is not a bill statements” can be wasteful and ineffective. Lodes said, “With more sophisticated plans coming into play, [they need] to be more upfront with the patient as to how much they are going to be responsible [paying] for that procedure.”

Read on to get a sense of how that mission may become a bit less onerous for healthcare providers, from clinics to hospitals to doctors.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Recent Posts

Agora Services Debuts New Tools For SMB Banking

Challenger bank Agora Services wants to address challenges with banking for small businesses with a new solution called Agora SMB,…

2 hours ago

Google Almost Done With Transition To SAP Ariba Network

Google's transition to SAP Ariba's cloud-based services has a completion date set for Aug. 24 after multiple waves that began…

2 hours ago

Fed Moves Ahead With FedNow Despite Objections

Not everyone favors the Federal Reserve Board’s launch of its settlement service designed to eliminate the three-day check clearing and…

3 hours ago

Pelosi, Mnuchin Call For Reopening Stimulus Talks

Weeks of failed negotiations on pandemic-related aid has led to House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin, representing…

3 hours ago

Bitcoin Daily: S. Korea To Use Blockchain To Collect Highway Tolls; Polish Financial Watchdog Warns Of Fake Crypto Scams

South Korean highways could see blockchain-based toll booths before the end of the year, according to a report from Crypto…

4 hours ago

CHAMPS Group Purchasing Works With Procurement Partners On Smoother P2P Services

CHAMPS Group Purchasing is partnering with Procurement Partners, which works in procure-to-pay (P2P) solutions, to provide a new service for…

4 hours ago