What is Text-to-Pay - Simplifying Payments for Modern Healthcare Practices
Managing payments has always been one of the trickiest parts of running a healthcare practice. Why? Because payment processing involves coordinating multiple parties, like providers, insurance companies, third-party administrators, and patients.
Navigating these groups is hard enough, but when you throw in issues like manual statements riddled with errors - both patients and providers face an uphill battle.
The result? A significant lag time between patient care and payment.
It’s time to embrace text-to-pay, a modern payment method transforming how healthcare providers collect payments while improving the patient experience.
Whether you are a billing service provider working for small-to-medium healthcare practices or an independent practice with in-house billing departments, text-to-pay in healthcare offers organizations a fresh way to stay ahead in a rapidly evolving world of digital payments.
What is Text-to-Pay?
Text-to-pay is a secure, SMS-based payment solution that enables healthcare providers to send patients a payment link via text message. It works a bit like this:
- A practice sends a bill by text message to a patient.
- Clicking the link lets patients access a secure portal to view their outstanding bills and pay directly from their mobile devices.
- The transaction is processed and charged to the customer’s linked payment method.
The result is a seamless payment experience that’s both convenient for patients and efficient for healthcare practices. Key benefits of text-to-pay include:
- Eliminate patient’s need to log into patient portal to make a payment
- Offer inclusive payment options for those who don’t have computer access
- Save time on in-office billing and collect payments quickly
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Why Modern Healthcare Practices Need Text-to-Pay
Leveraging integrated payment solutions like text-to-pay has become essential for modern healthcare providers—and here’s why.
Growing Patient Demand for Convenience
Today’s consumers are accustomed to highly personalized experiences in banking, retail, and entertainment. Now, they expect the same convenience in their healthcare, especially as mobile payments and other contactless options become the norm.
Text-to-pay lets patients settle their bills when they can—whether at home or on the go. This level of convenience improves patient satisfaction and increases payment compliance.
Addressing Traditional Billing Challenges
Traditional payment systems in healthcare, like mailing paper invoices, are often plagued by inefficiencies, including:
- Slow turnaround times for processing mailed checks.
- Increased labor and manual effort to follow up on overdue payments. A medical billing assistant salary averages around $45,760 per year.
- High costs associated with printing and mailing invoices. The cost of a paper invoice can range between $12 to $30 to process. While larger companies cost nearly $40 per invoice.
A text-based payment option offers a faster, contactless alternative. One reason this is effective? Almost 81% of US consumers check their text notifications within five minutes of receiving a text. Offering this option meets patients where they are.
Enhancing Compliance with Payment Deadlines
It’s no secret that late payments are a major issue for healthcare providers. With automated patient payment reminders built into a text payment system, practices can gently nudge patients to meet their payment deadlines without awkward phone calls.
Benefits of Text-to-Pay for Healthcare Practices
Text-to-pay in healthcare isn’t just convenient—it can bring a host of benefits for both providers and patients. Here’s how.
Simplified Billing and Payment Processes
Billing departments benefit from reduced workload through automated workflows. Tasks like sending payment reminders, processing payments, and generating receipts are streamlined, saving time and resources.
More Convenience for Marginalized Patients
Tools such as cashless payment methods help improve access, affordability, and convenience of care. For example, the text-to-pay option lessens burdens on patients experiencing social determinants of health issues (SDOH).
SDOH influences many health-related social needs, such as financial strain or housing instability. With a few clicks, patients can settle their bills on their mobile phones without worrying about problems like accessing a computer.
By offering this option, providers can do their part to help make SDOH a little more manageable for their patients.
Improved Cash Flow and Payment Completion Rates
One analysis found that the patient collection rate had fallen to nearly 48%. For providers struggling with these outcomes, every cent counts. By integrating SMS payment solutions, healthcare practices see higher compliance with payment deadlines, improving cash flow stability.
Patients are more likely to complete payments on time when they are easy to make. One study reveals that SMS reminders for medical bills result in a 30% increase in payment rates.
Secure Transactions
Text-to-pay systems utilize advanced encryption and compliance with regulations like HIPAA, ensuring that patient transactions and data are secure. Reputable systems offer security features like:
- Encrypted user-to-provider communications
- Identity authentication
- Secure payment links
A Competitive Advantage
A Deloitte article suggests that patient-centric care and interoperability are the keys to success in the future of healthcare.
Offering integrated mobile payment options gives practices a leading edge in both of the above areas, setting them apart as modern, patient-focused providers.
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Best Practices for Implementing Text-to-Pay
To make the most of a text-based payment option, providers should follow these best practices during implementation.
Get Permission
Did you know a text is considered a call? Because of this, the Telephone Consumer Protection Act (TCPA) applies. What does this mean? Calls (or texts) to cell phones using any form of prerecorded voice or an automated telephone dialing system (ATDS) without the recipient’s consent is illegal.
In other words, before sending payment text messages, providers must receive patient consent.
This consent must be for billing texts only.
Separate consent must be obtained for any other messaging you send, so make sure billing messages contain billing terminology only. Also, remember to include an opt-out method for patients who no longer want to be contacted by text.
Choose a Secure, Compliant, User-Friendly Solution
Select a text payment system that prioritizes both security and ease of use. Platforms should use encryption to protect data, be HIPAA-compliant, and offer patients a clean, mobile-friendly interface.
The best place to start may be to find a health record (EHR) that houses all of these features. Why? Choosing the right EHR platform can help protect vital patient payment information while saving time and money.
For example, DrChrono’s EHR is a HIPAA-compliant, fully integrated EMR, patient engagement, and billing solution in one platform, whether you are on your iPhone, iPad, or web. This EHR also offers integrated payment solutions, including the Text-to-Pay feature.
This easy-to-use tool allows billing departments to text a payment link to a patient’s phone to collect pre-payment, copay-deductible, or balance. Billing departments can use this solution to:
- Streamline payment workflows
- Simplify record-keeping
- Enhance revenue cycle management (RCM)
Prepare Your Team
Provide training to ensure your billing departments and other staff members are familiar with the system, including how to send payment links, monitor completed payments, and respond to patient questions. Create guidelines that address topics like:
- Which staff member can send texts
- When to use a phone call instead
- The amount of personal health information (PHI) that can be shared in a text message
Pilot the System and Monitor Performance
Track performance metrics such as payment completion times and consider rolling out a text payment system to a small group of patients as a trial run.
Monitor the feedback you receive and adjust as needed before full implementation.
How You Can Get Started Right Now
Excited to simplify your payment process? Here are four actionable steps you can take today to implement text-to-pay in your practice.
Step 1. Research Text Payment Providers
Explore trusted solutions that cater to text payment system integration for healthcare. Look for features like automated reminders and secure payment portals. Also, look for systems/vendors that offer the following:
- User-friendly patient interface
- Customizable messaging options
- A variety of payment methods
- Transparent pricing structure (per-transaction fees, monthly subscriptions)
- Reliable customer support
Step 2. Audit Your Existing Billing Process Identify limitations in your current medical billing payment system. Healthcare experts often advise asking questions like:
- How long does it take to send invoices?
- Do we have issues tracking overdue payments?
- Are the patient billing operations seamless or filled with bottlenecks?
- Are we offering affordable payment options?
- How do patients currently pay? Will they be open to new technology?
Knowing your billing challenges will help you choose a solution that meets your needs.
Step 3. Communicate with Patients
Communicate with patients about your new text-to-pay solution. Make it easy for them to adopt the new payment method by sharing FAQs, tutorials, or links to helpful tools. For example, create a page on your website with step
Or better yet, text a link to this information so they (especially older patients) will get used to navigating their mobile phones. You can also send the information through patient portals, emails, or post signs in waiting rooms.
Step 4. Review Laws and Stay Vigilant
Research complex government regulations concerning processing payments through text messages. Review processing laws in your state and place of business.
For example, there are specific rules about texting and HIPAA laws, including avoiding patient-identifiable information in messages. For more information on this topic, click here.
Remember to accept only secure payment methods from consumers like third-party processors and encrypted payment vendors.
RELATED ARTICLE: Meeting Consumer Demand - Improving Patient Financial Experiences with Automation
Final Thoughts
Text-to-pay solutions represent a breakthrough for modern healthcare practices. By simplifying payments, reducing administrative work, and improving patient satisfaction, these systems offer an innovative, patient-friendly approach to healthcare billing.
Ready to transform your payment process? Contact DrChrono to learn more about our patient-centric billing solutions. Let’s redefine the future of healthcare payments together.