How Is The Payment Model Changing In Healthcare: Fintech For Healthcare Industry?

Nov 25, 2021
5 min read

Many things have been transformed with modern technologies and have been digitized. Digitalization played a crucial role in modernizing the world.
Digital technology has made everything very efficient and easy. In the present world, even payment can be made through digital platforms. It has reduced the need for fiat currency. Even though everyone has not completely adopted it, it has still seen a good response worldwide.
This pandemic has nearly affected all the industries, and we all know that, right! But what became more important was to arrange all the necessary medical kits, such as the PPE kit and all the required amount of ventilators.
Alongside these problems, another one is the pressure created by all the patients in the healthcare facility. Several surveys conducted by these healthcare facilities say that more than 80% of the patients prefer paying through a digital platform, as it is a secure mode of payment.
Even after a huge market demand for digital payment, many healthcare facilities have still not modernized their payment methods. Such facilities amount to around 85%, which are yet to update their payment modes. Healthcare facilities with thousands of payment transfers every day need to adopt these payment modes soon.
These healthcare facilities still transfer the payment bill through email and anticipate their patient providing cheques or, even worse, sharing their card details over telephonic communications. We all know, this process can jeopardize your transaction details. Many patients prefer those healthcare facilities that accept digital payment, which is a good move by them, as you wouldn't want your credit details to be used by some stranger in the wrong way.
According to a survey conducted, more than 65% of patients will change the healthcare service if the healthcare facility doesn't offer digital means of the payment transfer system. These patients don't want to go through rough experiences because of the problems with transferring payment.
It all comes down to convenience; digital technology is way more convenient than the old conventional paperwork. Who would've thought that the payment means in the healthcare facility would be a crucial factor that patients consider before consulting them for the treatment?
All healthcare companies should adopt this new technology as soon as possible. Eventually, they will have no other option than to go with it, so why delay. Moreover, it does offer several benefits over the regular paperwork payments.

Fintech for Healthcare Facility

The never-ending pandemic that we are going through has triggered many changes across various industries throughout the world. Now, the way of doing business has changed entirely, and everyone is now used to this new pattern. However, among all these industries that went through several changes, one specific industry was the most focused one that has not changed its way of providing facilities and other services, i.e., the healthcare facilities across the globe.
During this pandemic, keeping a safe distance and avoiding physical contact with others has played an important role. The healthcare facilities worldwide used to give out physical paperwork regarding the bills or any other information that involved physical connections. And now, the modern ideas which involve digital health information and the means of providing contactless and a very safe environment during this pandemic. As we know, we are still fighting this pandemic and are not yet past it. Moreover, this has forced everyone to have a remote meeting with the healthcare facilities.
However, there is a significant change on its way in the way we pay our bills in healthcare facilities. Fintech propels this change for health tech. They have been working on making the process of payment easier for the patients in the healthcare facilities. The annual expenditure that the Indian healthcare facilities received was around $115 billion in the current year.
Out of this total, approximately $72 billion was spent by the individual's savings or through some borrowings; note that this payment didn't involve the money paid through the insurance. Due to which people around the globe are incurring a lot of expenditure in healthcare facilities and are indebted to someone. These are inferred as Catastrophic Health Spending.
The money that the people in India disburse on the healthcare facility is approximate twice the Cellphone industry in India itself. Imagine how simple it is to acquire a smartphone in India while comparing it to the healthcare facility's expenditure. It is enormous, isn't it?
Everyone knows that whenever a person makes a payment. The person who is initiating the payment has the power in that particular transaction. However, this isn't the case in the healthcare industry. This healthcare facility is considered to be the place of upheaval in such cases.
In case you eliminate the friction in such facilities, you have returned the power to the payer. In the healthcare case, the payer is the patient of the healthcare facility or the relative.
These payments at healthcare facilities can be classified into two further factors: the payment system or the network, which is the base of the technology that enables the consumer to have a seamless experience while processing their payment. Today, it has become effortless; you just have to use your debit card or credit card, and within seconds the payment has been processed through the powerful network that lies under the system that helps run the process smoothly. Another factor is the accessibility of low-cost capital to subsidize the payment process.
There are more than 748 million android phone users, along with more than 5 million POS terminals in the Indian region, the initial factor being looked after. Presently, the assortment of the physical as well as a digital payment network, the system that runs the process, is well built and has been substantiated. However, the main problem lies around the second factor: the accessibility of low-cost capital to disburse for all healthcare bills of any sort.
And to make this happen, the 'embedded finance' will disrupt the money transfer equation in this industry. You just have to embed when you incorporate loaning and the payment option and many others in the digital payment wallet. This will make the transaction more smooth and efficient as much as feasible for the patients.
Several others achieve the same purpose, such as the Israel origin PayZen to name one. It utilizes the information to generate an individual patient transaction alternative that incorporates a healthcare facilities revenue cycle network, making it more efficient and smooth for all the patients through their treatment.
Moreover, this technology has been introduced in many healthcare facilities in India. It has become a hot factor now as it is finding its root in the country. Some healthcare facilities are coming in front to ease and further simplify the payment process throughout the journey.
In India, the record of people dropping under the poverty line as a result of healthcare expenses is approximately more than five crores, and all this before we came across the unfortunate pandemic. And now, it has become serious. This has the potential to positively affect more than millions of people in India, for those who do not have facilities such as insurance.

Conclusion

Other than the healthcare industry, retail and many enterprises recognized a chance in the fintech technology that eases the process of the transactions and enhances consumer experience throughout the process. It is about time that the healthcare facilities also adapt the same and make it simpler.
In this particular case, the Indians can be on the front with the enormous amount of smartphone penetration as well as a huge number of healthcare facilities. As per the reports, processing the payment will become extremely smooth without any resistance within a time span of five years. This is indeed a great report, digital payment has now become a trend in every part of India, and it should be, as it is such a safe mode of transfer, where you need not worry about anything and it will even save you a lot of time.