The healthcare industry stands at a pivotal juncture. According to the Trends in Healthcare Payments Annual Report, while economic optimism has increased among healthcare leaders, recent insights paint a complex picture of consumer dissatisfaction, looming cyberthreats and the urgent need for payment innovation. Understanding healthcare payments trends will be critical for organizations of all sizes, as well as for the future of the industry.
In this blog, we will explore the top five trends identified in the report, including a few choice datapoints, impacting the industry and the insights to help navigate those trends.
Healthcare Payments Trend #1: Cyberthreats Loom Large
92% of providers said that cybersecurity is a high priority at their organization.
Large-scale cyberattacks have hit healthcare organizations hard. In 2024 alone, nearly 200 million people had their data exposed in these attacks. The impacts for healthcare organizations included suspension of claim payments, unplanned system downtime, and loss of data and funds. These attacks must serve as a reminder to healthcare of the very real threats facing the industry.
In an era where digital threats are more sophisticated and frequent than ever, the healthcare industry stands at a critical juncture.
Healthcare Payments Trend #2: The Consumer Disconnect
72% of consumers under the age of 35 would switch providers for a better healthcare payments experience.
Overall, consumer sentiment is at some of the lowest points in recent history when it comes to healthcare. Yet, payment responsibility continues to grow for consumers. This disconnect is evident in factors such as customer loyalty, especially for younger generations. Trends show us that consumers are confused and surprised by their medical bills. Today, consumers have an expectation of seamless and convenient payment processes across their healthcare experience.
As patients navigate growing deductibles, provider organizations are challenged to collect high out-of-pocket payments.
Healthcare Payments Trends #3: Slow and Costly Patient Collections
79% of providers say it takes two or more statements to collect a patient balance in full.
The need for innovative payment technology spans beyond the consumer disconnect. For the majority of providers, paper and manual processes dominate their patient collections. As a result of these legacy processes, providers typically take more than two statements and 30 days or more to fully collect a patient balance. The data actually shows that for a significant number of providers that that collections can take longer and need even more statements. These datapoints demonstrate the slow and costly state of patient collections.
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Healthcare Payments Trends #4: Patient Refunds
91% of providers issue refunds for overpayment of medical bills.
Determining patient responsibility upfront can be a challenge for healthcare providers. As the complexity of patient responsibility grows, so has the issuing of patient refunds. Nearly all providers are issuing patient refunds, and often the refund comes in the form of a paper check.
With industry best practices, it is possible for providers to improve refund processes, enhance the patient experience, and effectively manage payments.
[Business Tool] 6 Ways Healthcare Providers Can Improve the Refund Process
Conclusion
Healthcare organizations must remain aware of these most-pressing payments trends facing the industry. As these trends highlight, the industry must prioritize innovation and adaptability to meet the evolving demands of both providers and consumers. When embracing digital solutions and fostering a more transparent and efficient payment ecosystem, healthcare organizations can not only safeguard sensitive data but also enhance the overall patient experience.
The path forward requires a concerted effort to bridge the gap between current practices and future needs, ensuring that healthcare payments are secure, efficient, and consumer-friendly. As the industry navigates these challenges, staying informed and proactive will be key to achieving sustainable success and delivering value to all stakeholders involved.