Healthcare payment processing is a powerful engine, enabling healthcare organizations to effectively manage financial transactions and optimize revenue cycle operations. With the right payment-processing workflows, healthcare organizations can accept credit, debit, and HSA cards, ensure compliance with industry standards, and manage associated risks.
Effective payment processing also helps healthcare organizations save time, reduce costs, and protect cardholder data. Better yet, it supports a seamless and efficient payment experience that meets the needs of patients and staff alike.
Why choosing the right vendor is business-critical
Choosing a reliable payment processing vendor can help healthcare organizations safeguard patients’ sensitive information and ensure secure transactions. It can also enable a more seamless and efficient payment experience—a key differentiator for maintaining patient satisfaction and operational efficiency.
In addition, payment processing vendors that accommodate various payment methods can greatly reduce payment delays and enhance cash flow, which is crucial for organizations that are already operating on razor-thin margins.
Key features to look for
When searching for a payment processing vendor, it’s important to note that there isn’t a one-size-fits-all solution. After all, every healthcare organization’s needs are unique. However, there are a few essential features that every organization should keep in mind.
Here’s what your organization should look for when vetting potential vendors:
Competitive rates
When evaluating payment processing vendors, you’re likely to come across several different pricing models, including:
- Tiered pricing: Categorizes transactions into three tiers—qualified, mid-qualified, and non-qualified—each with different fees. The payment processor sets the tier rate and criteria for each transaction, and they can change them at any time.
- Interchange-plus pricing: Involves a combination of interchange fees set by card networks and fixed processor markup. The fees are subject to bi-annual changes, which can make the overall cost difficult to predict.
- Flat-rate pricing: Offers a consistent rate for all transactions, regardless of type or volume. This model simplifies billing and reduces administrative overhead.
Tiered and interchange-plus pricing are prone to complexity and introduce the potential for unpredictable costs. Tiered pricing can be opaque, with processors able to reclassify tier rates at their discretion. And interchange-plus pricing, while transparent, is susceptible to fluctuating interchange fees that can complicate budget forecasts.
That’s why flat-rate pricing is the preferred model for healthcare organizations seeking a payment processing vendor. It provides a predictable, straightforward cost structure that minimizes surprise bills and fosters a more stable financial environment. It also tends to reduce overall processing costs, making it the most cost-effective choice.
Easy implementation
Speed is a key consideration when vetting potential vendors—especially since timely and accurate payment processing is essential for maintaining cash flow. However, some payment processors and payment facilitators have a lengthy and complex application process, taking significant time to underwrite new clients.
That’s why healthcare organizations should prioritize vendors that offer an online application process that is quick and easy to complete, ideally within 10 minutes. They should also look for vendors who can complete account underwriting in two days or less. Offering a streamlined approach not only saves time but also minimizes disruptions to healthcare operations, allowing healthcare staff to focus their time and energy on supporting patients—not processing payments.
No hidden fees
Every payment processing vendor claims to meet or exceed the industry standard—but it’s important for healthcare organizations to look at the fine print. Sometimes, payment processors implement hidden fees to mask the true cost of their attractive offers. For example, a vendor might advertise a “preferred” rate that only covers select card types. They may also exclude Card Not Present transactions from their advertised rate, or they may levy additional charges for assessments, chargebacks, and monthly fees.
To avoid falling victim to hidden fees, it is crucial for healthcare organizations to choose a vendor with a transparent pricing structure. A trustworthy vendor should clearly disclose how they generate revenue, without relying on deceptive practices that can unpredictably inflate costs.
Data security
Healthcare organizations routinely transmit sensitive information, so it’s crucial that they select a payment processing vendor that makes privacy and security its top priority.
That’s why healthcare organizations should only consider vendors who comply with the Payment Card Industry Data Security Standard (PCI DSS), demonstrating their commitment to protecting sensitive data. Such vendors conduct regular security audits to ensure that their networks are secure, and they employ end-to-end encryption to safeguard patients’ payment information from potential breaches.
It’s also important for healthcare organizations to seek out vendors that can provide third-party attestations of the security frameworks they adhere to. In doing so, healthcare organizations can ensure they partner with a vendor that exceeds the necessary security measures to protect their patients’ financial data.
A complete payments suite
Choosing a payment processing vendor that offers a comprehensive selection of payment tools is crucial for streamlining operations and enhancing patient satisfaction. Your vendor should offer a robust suite of solutions, including:
- Eligibility and benefits verification: Automatically checks patients’ insurance coverage to reduce billing errors and improve revenue cycle efficiency.
- Online payments: Allows patients to pay their medical bills through a convenient and secure online platform, rather than by mailing a check or swiping a card in the office.
- Payment plans: Helps patients manage large medical expenses over time, which can increase their satisfaction and reduce financial barriers to care.
- Card on file: Enables secure storage of credit card information, facilitating smoother and faster transactions for recurring payments or future visits.
- Mobile wallets: Supports payments through Apple Pay® and Google Pay™, catering to the preferences of tech-savvy patients and enhancing the checkout process.
- Cash and check tracking: Ensures accurate tracking and recording of cash and check payments, which helps organizations maintain financial accountability.
These tools collectively help healthcare organizations improve the patient experience, increase collections, and optimize the revenue cycle for patients and staff alike.
Conclusion
Choosing the right payment processing vendor is more than just comparing prices—it’s a strategic move that can significantly impact a healthcare organization’s efficiency and profitability. An easy-to-implement solution that offers competitive rates, transparent pricing, and adheres to stringent security standards can help healthcare organizations maintain positive financial health as they continue serving patients’ most pressing needs. By prioritizing the right factors, healthcare organizations can secure a vendor relationship that exceeds their expectations, leading to improved operational efficiency and better revenue cycle management.
