Boston, August 28, 2014 – Most small U.S. healthcare providers rely on paper check payments, but they need to trade in outdated check transaction portfolios to optimize their revenue cycle. Small providers specifically must choose between electronic funds transfer and virtual cards. The former provides the lowest transaction-cost alternative, is supported by the ACA industry-processing blueprint for payments, and has a steady transaction growth. The latter carry a higher transaction price, causing initial sticker shock for many small providers, but are emerging as a viable substitute for paper checks.
Based on a Q1 2014 Aite Group survey of 142 U.S. small-provider healthcare businesses, this Aite Group Impact Note provides direct insight from small providers―a key virtual-card target market―on the impact of transaction price and future card acceptance. It underscores the acceptable transaction price range for these providers, details the number of small providers receiving card payments, and outlines the impact of lower prices on transaction volume for small providers receiving card payments.
This 22-page Impact Note contains 17 figures and three tables. Clients of Aite Group's Health Insurance service can download this report.