Improving Trust and Transparency Critical to Healthcare Virtual Card’s Success

Of the healthcare practices not accepting virtual card, Aite Group finds 64% say lower transaction fees would make their practice more likely to accept virtual cards from commercial health plans.

Boston, December 14, 2016 - Many healthcare providers realize an electronic payment, coupled with an electronic remittance advice, simplifies their revenue cycles, but they lack commitment to shifting more reimbursement volume toward cards. Providers have trust concerns, and leading commercial card vendors are shouldering the burden of educating the industry and changing the narrative dogging cards. It behooves other market principals to follow their lead so that virtual-card payment doesn’t number among the compelling payment ideas that failed due to a lack of trust between one of the transacting parties.

“Payment acceptance is built on trust between the transacting parties, but commercial cards in healthcare suffer from price and transparency issues, which dilutes this trust. Despite these concerns, new providers receiving card outpace attrition by a ratio of 3-to-1, but they won’t commit to shifting more reimbursement volume toward cards until these trust issues are buttoned up,” says Aite Group senior analyst Mike Trilli.

Aite Group’s latest report, Healthcare Virtual Cards: Fleeting Curiosity or Budding Reimbursement Market?, summarizes healthcare providers’ positions on single-use virtual commercial cards and straight-through processing. Based on an Aite Group survey of 214 small and midsize U.S. healthcare businesses, the analysis compares the providers accepting virtual card with those that do not and offers commercial card businesses insight into growing volume, preventing attrition, increasing adoption, and educating the industry. It is the third in a series of reports on small and midsize healthcare businesses—the first and second are available here and here.

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About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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