The ongoing COVID-19 pandemic continues to influence trends in healthcare payments, especially for providers who have been at the frontlines of the pandemic. Several macroeconomic factors are plaguing providers beyond the pandemic itself, including labor shortages and high costs for consumers. This white paper examines trends in healthcare payments affecting providers as well as the untapped potential of improving payment experiences.
Top trends in healthcare payments from this white paper include:
41% of providers relied on external funding to remain open
The COVID-19 pandemic took a heavy toll on the healthcare industry over the last three years. The most prevalent sign of this is the burnout felt throughout the industry. Burnout permeates every corner of healthcare from clinical staff to the executive suite.
Also, provider organizations face considerable financial struggles. Many provider organizations reported operating with negative margins and needing external funding to remain in business. Surges in COVID-19 variant outbreaks added to these burdens.
31% of providers spent more than budgeted or typical on training and hiring new staff
No one can dispute the true value of a healthcare worker. This is especially true after three years of an unrelenting pandemic. However, the harsh reality is that the expenses related to healthcare workers have increased significantly. Rising labor expenses are projected to continue to increase in the years to come.
Labor shortages, for both clinical and administrative roles, directly impact provider organizations and add to their fiscal difficulties. Data shows that providers are spending more training and hiring staff, as well as giving bonuses to those working uncovered shifts. These healthcare workforce trends only add to the financial hardships on providers.
74% of providers say it takes more than two statements to collect a patient balance in full
Trends consistently show that consumers owe more out of pocket for their healthcare. This change is fueled in large part by the considerable growth of high deductible health plans over the last decade. As costs grow, the payment experience in healthcare has not kept pace. Consumer sentiment paints a picture of confusion and frustration with the current state of healthcare payments.
As provider organizations work to recover financially, there is an opportunity to improve how consumers pay while also reducing the dependence on administrative labor in payments. The key to solving both trends is convenience. Consumers now expect to have convenience at their fingertips, including for healthcare payments.