PHILADELPHIA, PA & NEWPORT BEACH, Calif.--(BUSINESS WIRE)--InstaMed, healthcare’s most trusted payments network, announced today the launch of the Trends in Healthcare Payments Eighth Annual Report: 2017. This is the eighth annual report from InstaMed and features key market trends influencing the healthcare industry from an objective view to educate the market and promote awareness, change and greater efficiency.
This year’s report focuses on four core challenges facing the healthcare industry, as highlighted by several telling statistics from 2017.
1. Consumers Have Spoken (and They Aren’t Happy)
Each year, the amount consumers spend on healthcare is growing at a staggering rate. However, education and outreach to consumers regarding healthcare payments have hardly kept pace with the increase in payment responsibility. The consequences of this oversight are coming in the form of consumer frustration and fear in healthcare. The consumer voice will become harder to ignore as dissatisfaction takes the shape of customer attrition and lost revenue for providers and payers alike.
- 72% of consumers are confused by their explanation of benefits (EOBs) and 70% are confused by medical bills
- 65% of consumers would consider switching healthcare providers for a better healthcare payments experience
- 73% of providers report that it takes one month or longer to collect from patients while 80% of consumers report they pay their bill within three weeks
2. The Digital, Always-Connected World Has Real Consequences for Healthcare
For the healthcare industry, the digital world has created a new kind of consumer that is challenging business as usual for both payers and providers. Healthcare organizations can now expect consumers who bristle at the prospect of waiting, demand convenience, expect frictionless payments and speak out on social platforms when experiences do not meet their expectations.
- 71% of consumers want to pay all of their healthcare bills in one place
- 80% of consumers want to check in for a provider visit on their own secure mobile device
- 65% of consumers would download a mobile app to pay all of their healthcare bills
3. Paper Is the Sandpaper of Healthcare
Despite the trends related to the digital world, healthcare overwhelmingly remains loyal to paper for most of its communications, especially those related to healthcare payments. The heavy reliance on paper for healthcare payments, instead of leveraging less expensive and more efficient electronic alternatives, costs all industry stakeholders.
- 79% of consumers receive paper medical bills and only 21% of consumers want to use checks to make healthcare payments
- 58% of providers report that paper statements are the primary method of collecting from patients, yet 41% of providers have not changed their patient statement in over five years
- 86% of providers report receiving paper checks and explanation of payment (EOPs) from one or more of their payers while 85% of providers prefer ERA/EFT payments
4. Security Concerns Aren’t Going Away
The impacts of compromised data cost the industry not just financially, but in reputational damage and customer attrition. Security is on the minds of providers, payers and consumers as the industry struggles to keep data secure.
- 2017 saw more healthcare data breaches than any other year on record
- 96% of providers and 94% of payers view security as important when collecting healthcare payments
- 47% of consumers have significant concerns regarding the security of making payments for both their medical bills and health plan premiums
Now in its eighth year, the report features qualitative market data collected by Qualtrics, an independent experience management and market research company, to represent the sentiments of industry stakeholders: providers, payers and consumers. The report also uses quantitative data from $287 billion in healthcare payments processing on the InstaMed Network.
“InstaMed has combined its unique position in the healthcare payments market with both quantitative and qualitative data to yield key insights into the payment trends within the U.S. healthcare system,” said Bill Marvin, President and CEO of InstaMed. “For the past eight years, we have published the Trends Report to highlight the opportunities that exist to improve the healthcare payments experience for all stakeholders.”
InstaMed will host a webinar to discuss the Trends in Healthcare Payments Eighth Annual Report: 2017 on June 13, 2018. Register for the webinar and download the report at www.instamed.com/trends.
InstaMed is healthcare’s most trusted payments network, connecting providers, payers and consumers on one platform. The InstaMed Network connects over two-thirds of the market and processes tens of billions of dollars in healthcare payments annually. InstaMed reduces the risks, costs and complexities of working with multiple payment vendors by delivering one platform for all forms of payment in healthcare, designed and developed on one code base and supported by one onshore team of experts in healthcare payments. InstaMed enables providers to collect more money from patients and payers while reducing the cost and time to collect. InstaMed allows payers to cut settlement and disbursement costs with electronic payments and facilitate consumerism for their members. Visit InstaMed on the web at www.instamed.com.