The healthcare sector is ripe with opportunities for transformative change, often obscured by entrenched fragmentation and inefficient practices. At the heart of this ecosystem, caught between traditional processes and the promise of technology-driven innovation, lies the quest for improved healthcare payments.
To delve into how the evolution of healthcare billing and payments can alleviate the complexities faced by patients and providers, and streamline care delivery, PYMNTS CEO Karen Webster spoke with Tom Furr, CEO of PatientPay, and Ryan Zemmin, CEO of ClearGage, about their recent merger and how digital innovation is enhancing the patient experience in healthcare billing and payments.
âWe are attempting to digitise a predominantly paper-based system, which is how most healthcare bills are sent out,â Furr stated. âForty-five percent of healthcare bills are still sent through paper statements, which is not the norm outside of healthcare.â
He attributed the persistence of paper billing to the inherent complexity of healthcare payments and the challenge of transitioning long-established practices. While the pandemic accelerated the shift towards digital solutions as healthcare providers faced pressure to maintain efficiency, the broader economic landscape has left healthcare systems struggling with rising costs and reduced government support.
Transparency and Consistency: The Keys to Improved Payments
Revenue cycle management is a critical concern in the healthcare industry, with collection rates playing a crucial role in maintaining financial stability. Traditionally, paper statements have been the primary method for patient billing, but this approach is seen as outdated and inefficient. As healthcare businesses seek to optimise their collection processes, many are turning to digital payment solutions to improve both the speed and success of patient payments.
The recent merger between PatientPay and ClearGage, as the two executives explained, represents a strategic alignment aimed at addressing the evolving needs of the healthcare payment landscape. The merger was driven by both companies recognising their complementary strengths and the potential for greater impact through collaboration.
âWe were looking for a PayFac [payments facilitator] solution, and ClearGage had a registered PayFac,â Furr said. âThey also had a robust eligibility and estimation solution that perfectly complemented our back-end billing and payments capabilities.â
By combining resources, the two companies aim to create a unified platform that enhances the patient experience while providing healthcare providers with the tools they need to improve efficiency and reduce costs. The merger is expected to bring together a broad range of capabilities, including treatment estimation, eligibility verification, and streamlined billing processes, under a single umbrella.
One of the most significant barriers to timely payments in healthcare is the complexity of the billing process. Patients often struggle to understand their bills, especially when multiple charges from different providers are involved. Even those well-versed in the industry can find healthcare bills confusing.
âThe reality is, if you can give somebody the insight ahead of time to what the cost of a procedure might be, and then provide them a range of options to pay for that service, it gives them much more confidence in their ability to not only to get the service, but to be able to afford it,â Zemmin said.
As healthcare payments continue to evolve, both Zemmin and Furr emphasized the importance of transparency and consistency in the patient experience. This approach not only benefits patients but also helps healthcare providers increase appointment adherence and reduce the administrative burden of chasing payments.
The Path Forward: A Unified and Efficient System
Despite the progress being made in the healthcare billing and payments space, inconsistency across healthcare providers remains a challenge.
Furr highlighted the siloed nature of healthcare, where patients often encounter different payment systems and experiences with each provider they visit. To address this, PatientPay has developed a patient-centred approach, similar to PayPal, that allows patients to manage all their healthcare payments in one place, regardless of the provider.
âHealthcare has traditionally been built around medical groups, with little consideration for the patient experience,â Furr explained. âWeâve taken a different approach, focusing on the patient as the centre of the healthcare payment ecosystem.â
Tactics, like integrating explanation of benefits (EOB) data with billing information, can make it easier for patients to see exactly what they owe and why. This transparency, combined with the convenience of digital payment options, has led to a 44% payment rate among users who log into the PatientPay platform, Furr said, with 70% of those payments made via mobile devices.
Ultimately, reducing paper statements and offering digital payment options not only streamlines the billing process but can also improve cash flow for medical providers.
The future of healthcare payments lies in further simplifying and standardizing the billing process across providers. Zemmin and Furr both envision a system where patients are provided with clear, upfront estimates, and the billing process is seamless and consistent across all healthcare interactions. By leveraging technology and focusing on the patient experience, they believe the industry can move away from the traditional, fragmented approach to a more unified and efficient system.
âTaking the complexity of healthcare billing and simplifying it so patients can understand it, then giving them the ability to pay it easily, thatâs the key,â Furr said.
