The Hidden Costs of Patient Payments

For decades, the urgent care industry has relied on the same traditional payment vendors to handle patient payments. Beyond a standard payment platform, additional tools – like terminals, paper bills, collection agencies etc. – have become necessary. Despite this being a complicated system, it may feel necessary by many to stay afloat – and too difficult to switch out. But as this industry pivots to a more modern and transparent collection system, you may be asking yourself: is the cost of my current solution worth it?

Many payment vendors have complex pricing structures that can mask the true cost of their services. These hidden costs come in various forms:

1. Platform fees: Recurring fees to access a payment platform can cost upwards of $10,000 a month, depending on the vendor.
2. Chargeback fees: Costs incurred when patients dispute charges can affect up to 1% of your patients, and cost $30-$50 each time.
3. Terminal monthly rates: Fees associated with maintaining physical patient terminals can cost $25 to $45 per month per terminal.
4. Collection agency costs: Fees for using collection agencies, which can range from 50-75% of the collected amount, especially as debts age.
5. Paper costs: Expenses for printing and mailing paper statements can cost between $1.50-$3.00 for each bill or reminder.
6. Human labor: the cost of additional man-hours required to manage third-party payment vendors and collection agencies can cost $20 an hour per contractor.
7. Mental and emotional toll: The stress and time associated with managing these complex and opaque billing processes.

The Impact to the Urgent Care Industry

Most urgent cares do not fully realize the cumulative impact of these hidden costs. Over time, these expenses can erode profit margins and strain financial resources. As debts age, the percentage of recovery decreases, often requiring urgent care centers to write off a portion of their revenue. Additionally, the administrative burden of managing these costs diverts valuable time and resources away from patient care.

A Radically Different Approach: Solv Pay

We built Solv Pay because we believe in a drastically simplified and more modern way of collecting. Solv Pay is a payment solution designed specifically for urgent care centers, with one single, transparent processing fee. This approach eliminates hidden costs and complexities through…

1. Cost Savings: By consolidating fees into a single processing charge, your overall payment processing costs are drastically reduced.
2. Aligned Incentives: Solv Pay’s structure incentivizes capturing as much revenue as quickly as possible, without the need for aggressive collection tactics.
3. Patient-friendly system: With tools like text-to-pay and auto collect reminders, your patients are much more likely to pay their bill in a timely manner.
4. Simplified Billing: Eliminating paper statements and third-party management reduces your administrative burdens and associated labor costs.
5. Transparent ROI: Clear and straightforward billing makes it easy for you to track your return on investment and understand the financial impact of using Solv Pay.

Why Transparency Matters

Patients are fed up with surprise bills – 87% of Americans have been surprised by a medical bill in the past year, leading to major lack of trust and concerns around financial hardship. By adopting consumer-centric payment technology and using cost estimation tools, urgent cares can drive better outcomes for everyone involved.

Modern payment solutions like Solv Pay emphasize upfront transparency, allowing urgent cares to collect payments more conveniently and efficiently.

By adopting a transparent and simplified payment solution, urgent cares can focus on providing high-quality patient care while maintaining financial stability. This proactive approach not only enhances patient satisfaction but also ensures a more sustainable financial model for the future.

Conclusion

Hidden costs in common healthcare payment solutions can significantly impact financial health across the urgent care industry. Implementing a modern payment solution like Solv Pay, designed with transparency and simplicity in mind, can lead to substantial savings and improved financial outcomes. By understanding and addressing these hidden costs, urgent care providers can ensure they are maximizing their revenue while providing the best possible care for their patients.

If you’re unsure about the hidden costs lurking in your current payment solution, schedule some time with us to learn more about how a modern, transparent approach can transform your urgent care practice.