Healthcare costs in the US are abnormally high and increasing not only in dollar terms but also as a percentage of GDP. All stakeholders in healthcare from the policymakers to economists to healthcare consultants agree that measures should be devised to reduce costs and increase efficiency in the sector.
Unfortunately, the healthcare industry lags in adopting innovative solutions such as electronic payments that could address many of its problems. Electronic payments can reduce costs, increase efficiency, and save time for healthcare organizations. Despite these benefits, healthcare businesses are reluctant to embrace e-payments and opt to stick to costly and labor-intensive traditional invoice processing and payment systems. Below are three techniques to help vendors push E-payments for their healthcare businesses:
Numerous knowledge gaps exist among health organizations on electronic payments that hinder their adoption. Some organizations feel that electronic payments incur additional fees and costs. Remarkably, research shows that 17% of health practices pay a certain amount to use electronic payments. Therefore, health businesses perceive electronic payments as an additional burden to their already strained budgets. Providers do not understand that e-payments lower administrative and operational costs.
Also, some providers are fearful of the costs of implementing electronic payment solutions such as AP automation. They perceive electronic payments as luxuries their institutions cannot afford. What they do not know is that payables automation is an investment that pays in the long run. To increase the adoption of electronic payments, vendors must close all these knowledge gaps. They must educate the providers on the functioning and benefits of the payments to encourage participation and reduce skepticism.
2. Convey benefits
Vendors must sell the benefits of electronic payment systems to health organizations to increase the rates of adoption. Electronic payments solutions such as iPayables offer health businesses numerous benefits both monetary and non-monetary. Below are some of the benefits that vendors can convey to organizations:
- Cost savings: Processing a transaction manually costs an organization $3 more than processing it electronically. This means massive cost savings considering that more than 3 billion manual transactions are conducted each year between commercial medical health plans and health organizations. Health facilities get further cost savings by reducing transaction costs, eradicating late payment penalties, and enjoying dynamic discounting.
- Increase efficiency: Accountants don’t need to spend much time and effort processing payments manually.
- Customized solutions: A majority of electronic payment solutions are customizable to meet your unique firm’s needs.
- Fast, safe, and convenient.
- Prevent fraud by decreasing cases of accidental payments, double payments, and overpayment.
3. Refer to automation professionals
Vendors can refer health organizations to automation professionals to get more details on electronic payments. Professionals examine a business’ processes and needs and recommend the best electronic payment solution for it. iPayables works with healthcare businesses to devise a payment system that complies with their workflow and thus meets their needs.
Professionals can work with organizations to teach them how electronic payments work and help them maintain the system. Also, once the system is implemented, the automation professionals help the enterprise incorporate the system into existing accounting systems and solve any problems that may occur in the process. The professionals also train employees on using the new system and troubleshooting.
The healthcare sector has been reluctant to embrace technology and other innovative solutions to solve its vast problems ranging from rising costs to inefficiency. In this age of electronic payments, many healthcare businesses are still holding to yesteryear traditional payments systems like checks and cash. Vendors must push health organizations to adopt electronic payments by conveying their benefits, referring them to professionals, and providing adequate education on the systems. This way, we will all move forward to the electronic payments revolution together. If you are ready to take your health business to the next level, contact iPayables for efficient payables solutions.