Guest Column: Banks Need To Think Bigger To Heal The Healthcare Industry's Payments Processing Pains
By Benny Tate, ibml
When it comes to payments processing, the healthcare industry is facing chronic ailments.
In today's healthcare market, billions of transactions are exchanged each year through a network of complex and costly channels. The U.S. healthcare industry includes approximately 250,000 provider-based billing entities (e.g., hospitals, groups, physicians, labs) encompassing 1 million healthcare providers and 12,000 payer/processing-related entities (e.g., insurance companies, health plans, HMOs, Blue Cross Blue Shield plans, third-party administrators and government fiscal intermediaries). It is estimated that payers distribute 600 million envelopes each year to pay provider claims, which translates to between $3B and $4B in administrative healthcare costs.