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How FinTech is Enhancing Growth in Healthcare Industry
Digitalization has transformed the way many industries operate, from banking, marketing, and retail to manufacturing which have always been the early adopters of most types of technology. The healthcare industry has also been utilizing all technological advantages, but the adoption rate and increase in it had been slow until the 2000s. However, today, the industry heavily depends upon technology-driven medical equipment for diagnoses & treatment of diseases, and systems for medical records management.
Still, many other technology trends are emerging that are supporting healthcare organizations to thrive. For example, as the utilization of digital payment modes is growing rapidly, hospitals and doctors have already started offering patients several digital payment options.
According to Fortunly;
- More than 46% people use only digital channels for their financial requirements.
- 24% global businesses stated they are well aware of blockchain technology.
According to Finances Online;
- 90% of all mobile users across the globe are likely to use at least one banking platform by this year.
- 32% of millennials believe that financial transactions will be cashless in the future.
Healthcare spending is likely to reach $6 trillion by 2027. While payers are ready to use new helpful technologies, providers are looking for innovative solutions that can make the payment process convenient for both and enhance the overall customer experience.
With the growing population, the healthcare sector needs to find and deliver quick treatment methods, and since many new diseases and infections are arising, technology is becoming essential for healthcare organizations to serve the patients with the best and fast medical services. However, the management of finances in the healthcare industry has always been complicated; this calls for Fintech solutions.
Fintech & Healthcare: Commonalities
Though financial and healthcare industries are totally different from each other, many things are common between the two. Both sectors deal with highly confidential information through securely protected transactions, have varying stakeholders, and while operating in a strictly regulated environment, both tackle multiple challenges related to privacy concerns and security risks.
AI-Powered Data Analysis
In order to get the most out of raw data, it requires going through computerized analysis. Moreover, AI-based algorithms can enhance in-depth data analysis that can further help healthcare in improving medical processes requiring time-consuming analyses. This will not only make data analysis easier and affordable in healthcare but also help to detect a condition on time and recommend the precise medical procedure. AI and trained medical staff across healthcare organizations can definitely improve the state of this sector.
As data breach instances have been less in healthcare as compared to the financial sector, the former sector isn’t under major and regular threats of data theft or breach. However, at any cost, it is vital to protect the information that hospitals and doctors use and provide. Utilizing appropriate data security measures by adopting Fintech, healthcare organizations can protect patients’ personal information (name, age, address, bank account & credit card information) from fraudsters, hackers, data thieves, etc., gaining public trust in the sector.
Two-step security protocols (typically used for verification purposes) can help make data transfer much more secure, especially while referring patients to other hospitals or independent doctors. Fintech for healthcare acts as a protective shield. Consequently, there will be no exchange of information either in paper or digital format without the permission of patients or their family. This will add to building further trust in the industry across the globe.
Prepare for a Digital Future
Several factors, including the mandatory use of EHR systems, insurance marketplaces have been reshaping the healthcare sectors. And even with the use of fast and interconnected systems, back-office operations in healthcare organizations are still costly and lack efficiency.
Administrative costs are accountable for roughly 15% of the total healthcare expenditures, leading to more than 300 billion per year. In 2019, payers and providers spent almost $496 billion on insurance-related administrative and billing operations. And the amount doesn’t seem to reduce in the future.
If Fintech can help cut some portion of the overhead costs spent on payment processing, claims submission, reconciliation, etc., it would be a significant benefit to healthcare organizations. Amidst economic uncertainties, fintech can help medical institutions and doctors adapt to patients expectations that are continually changing, and build effective strategies to prepare for a digital future.
Digital-First Approach for Payments
With the emerging trend of digital payments, the healthcare industry is adopting digital payment modes and allowing patients to pay bills using different mobile-based money transfer applications. This will be common in the future.
Patients are paying for their medicine, treatment, and other health-related services (if they don’t have cash on hand) using highly secure digital mediums. This is also reducing the billing department’s workload and enhancing the billing and payment processes in healthcare organizations worldwide.
Aim of Fintech
Fintech aims to modernize and revitalize healthcare networks by bringing improved digitally oriented financial service models into the sector. Fintech companies are using powerful technologies such as AI, blockchain, machine learning to fulfil the knowledge gaps and reduce or eliminate inefficiencies commonly found in most healthcare payment plans. All these technologies, when implemented appropriately, can help monitor and maintain the flow of data and finances between providers and patients, saving lots of effort and precious time of people involved.
Fintech solutions (mobile-based financial services, medical loans/insurance, etc.) are capable of increasing the accessibility and affordability of medical care for people earning low to moderate-income. Similarly, fintech solutions are simplifying payment processes for patients as well as providers by processing enormous quantities of healthcare data at faster speeds.
Innovations in Fintech Helping Healthcare Sector
Fintech innovations are helping healthcare organizations to improve customer experience
Text-to-pay is an innovative way to make payments, and it is likely to improve the way billing information is communicated to patients. Fintech companies are targeting the healthcare sector by enabling them to deliver billing information to patients directly using text and allowing patients to pay with an easy – single-click option.
Companies: SwervePay, RevSpring, ACI Worldwide
mPOS, short for Mobile Point-of-Sale, terminals help providers to take the payment processing channel to the patient at the point of care. Besides, such terminals eliminate or simplify tiring, complicated, and time-consuming data collection tasks.
Companies: Verifone, Ingenico Group, McKesson
In recent years, the percentage of online payments is increasing rapidly, along with the increasing adoption of payment plans and automatic payments. New and easy-to-use online payment platforms are satisfying patients’ needs, making it easier for them to pay, resulting in payments are processed on time.
Companies: InstaMed, AccessOne, BillingTree, Medfusion
Many patients find their medical bills confusing, due to which they refrain from seeking additional medical care and become more likely to ignore medical bills. Several companies are focusing on innovation to tackle these challenges in order to improve patient engagement and enhance communication at all levels in the healthcare sector.
Companies: Cedar, Simplee, Flywire, InBox Health
EHR Integration: Payment firms offering billing and payment solutions can work more effectively by integrating into EHRs. EHR integration can;
• Eliminate double entry issues
• Exchange data in real-time
• Improve productivity
• Enhance the overall experience of the patients
Companies: FormFast, Redox, Salucro, HealthPay24 (Invoice Cloud)
It would be worth Investing in suitable technologies that can help in analyzing data, performing diagnoses & treatments, increasing data security, and in healthcare fintech to streamline billing and payment processes. The best the healthcare sector can do in the future is applying the appropriate technology in treatment & betterment of public health, in making back-end processes more efficient in order to achieve patient satisfaction and enhance their overall experience. It is also important to determine when and where fintech can be best utilized.
Although technology brings a series of advantages and benefits, it is not always affordable. For those healthcare organizations, clinics, and medical practices that are unable to afford technology or running short of funds to hire qualified people, can choose the other way: outsourcing. Outsourcing healthcare bookkeeping and accounting functions to a reliable service provider can help you go a long way on the road to success. Are you looking to outsource or thinking about the same? Get in touch with one of our experts to get your queries resolved. Call us today at +1 646 688 2821 or email at firstname.lastname@example.org.
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