Healthcare providers today are dealing with more patient refunds than ever due to complex billing models and rising patient obligations. This challenge is further compounded by staffing shortages, as many organizations struggle to find qualified finance professionals amid a post-pandemic workforce shift. However, many organizations still rely on outdated paper check processes, leading to slow and costly refunds that can leave patients feeling frustrated.
Data shows that 70% of Americans prefer electronic payments, and "77% of patients say that receiving and paying bills digitally would positively impact their relationship with their healthcare provider," according to Discover Global Network.
This preference highlights the need for digital payment options that improve the patient’s experience and modernize the provider’s procedures. By moving to digital payment solutions, healthcare providers can streamline refunds, reduce manual work, and cut down on high administrative costs tied to paper checks. This also helps providers meet Medicare and state-specific refund deadlines, avoiding stiff fines for non-compliance.
So, the question arises: Why haven't healthcare refunds evolved?
Many healthcare providers are hesitant to switch to digital systems because they worry about disrupting workflows or adding complexity to current processes. Data privacy concerns also play a role, as maintaining HIPAA compliance and safeguarding patient information adds a layer of consideration.
Each month, large healthcare organizations issue thousands of paper checks. Yet only 3% of these large providers have fully moved to digital refund solutions, according to Healthcare Business Today. This reliance on paper prolongs refund timelines, raises costs, and adds administrative strain. However, despite these challenges and low adoption rates, digital solutions offer a clear path to faster, secure refunds while meeting compliance requirements.
Transitioning to digital refunds doesn’t have to disrupt workflows or compromise data privacy. Digital payment platforms offer flexible integrations that align with existing systems, maintaining current workflows and meeting HIPAA standards. These platforms incorporate secure encryption and user authentication, addressing privacy concerns while streamlining processes and reducing administrative costs.
Adopting digital refund solutions also supports efficiency by automating tasks and delivering real-time insights into financial performance, cash flow, and risk. The result is a more secure and cost-effective way for healthcare providers to manage refunds, enhance data protection, and simplify financial management. They also enhance communication with patients, who often don’t understand the reasons behind their refunds. Offering digital payments with clear explanations helps reduce confusion and improve the patient experience.
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"Delays imposed by paper check-based processes can threaten a healthcare providers’ ability to keep pace with timely refunds issuance. Further, delays can subsequently cause noncompliance with related federal and state-level regulatory requirements and carry financial penalties. The optimal approach for removing risk of noncompliance is to leverage automation and digital payment options for the patient to choose from. A positive patient experience extends beyond the setting of care. Communicating with patients and issuing their refunds through the channels that they prefer leaves a lasting, positive impression." - Kevin Curran, EVP of Business Development - Healthcare, Transcard |
Rethink your refund strategy by integrating digital payments. Transcard’s digital solutions streamline payment processes, helping you deliver a better experience to your patients and cut unnecessary costs.
Connect with Transcard today to see how we can support your healthcare organization’s payment needs.
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