New York, May 7, 2015 – The U.S. healthcare industry’s billing and payment system is a horse-and-buggy in a world contemplating driverless cars. Consumers, shouldering higher costs, are frustrated by the system, which still largely relies on paper and telephone calls for billing and payment. The $2.9 trillion sector needs to transform the way it does business, creating a more transparent, seamless, convenient way to bill and collect money from its customers, according to “Money matters: Billing and payment for a New Health Economy,” a new report from PwC’s Health Research Institute (HRI), which identifies consumer pain points and desires, and offers a roadmap for a modern billing and payment system.
“Businesses that make this shift – offering convenient, seamless, quality, reliable and transparent billing and payment – will be rewarded in the New Health Economy,” said Kelly Barnes, PwC's U.S. health industries leader. “They will retain more customers and attract new ones.”
To create a roadmap for a new consumer healthcare payments system, HRI commissioned a survey of 1,000 U.S. adults. HRI also analyzed commercial claims from 34 million Americans in the Truven Health MarketScan® 2012 commercial claims database.
Heavy regulation of both the financial services and healthcare industries adds complexity and risk to innovation, despite recent efforts at administrative simplification. The HRI report identifies four strategies that incorporate six consumer-oriented principles patients are looking for: convenience; transparency; affordability; reliability; seamlessness; and quality. These strategies include:
“Healthcare companies must consider shifting from a business-to-business to business-to-consumer billing and payment approach,” said Paul D’Alessandro, PwC principal and customer leader, health industries. “Technology will play a significant role in creating ways to consolidate billing and payments, and mobile apps, online portals and other innovations should become more commonplace in the immediate future. For longer term solutions, the system should be redesigned to remove complexity and support a seamless customer experience.”
PwC’s full report Money matters: Billing and payment for a New Health Economy is available at pwc.com/us/healthcarebillingandpayments.
PwC’s Health Research Institute (HRI) interviewed executives from new entrants and traditional healthcare organizations and commissioned a survey of 1,000 U.S. adults. HRI also analyzed commercial claims from 34 million Americans in the Truven Health MarketScan® 2012 commercial claims database.
PwC’s Health Research Institute (www.pwc.com/hri) provides new intelligence, perspectives, and analysis on trends affecting all health-related industries. The Health Research Institute helps executive decision makers navigate change through primary research and collaborative exchange. Its views are shaped by a network of professionals with executive and day-to-day experience in the health industry. HRI research is independent and not sponsored by businesses, government, or other institutions.
PwC’s Health Industries Group (www.pwc.com/us/healthindustries) is a leading advisor to public and private organizations across the health industries, including healthcare providers, pharmaceuticals, health and life sciences, payers, employers, academic institutions and non-health organizations with significant presence in the health market. Follow PwC Health Industries at @PwCHealth.
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