A Market Research Comparative: Patient Payments & Text Messaging

Introduction:

We often write about and reference our own stats and metrics in relation to patient payments. In this post we decided to do some market research and share what other sources say about patient payments and e-comms. We focused our research on 5 specific areas of patient payments in the market: Instant Payment Reminders, Optimal Convenience & Accessibility, Healthcare Spending and Payment Challenges, Automated Payment Alerts, and Two-Way Communication. Our main goal was to obtain objective statistics from reliable sources in the market that emphasize the importance of advancing patient payments using technology.?

1. Instant Payment Reminders

Text messaging enables healthcare providers to send instant payment reminders directly to patients' mobile devices. Statistics show that text message reminders have a significant impact on payment compliance:

• Studies have found that SMS reminders for medical bills result in a 30% increase in payment rates. (Source: The Journal of Medical Internet Research)?
• Text message reminders are read within minutes of receipt, with an open rate of over 90%. (Source: MobileSquared)
• 64% of consumers appreciate receiving reminders via text message for bill payments. (Source: Harris Poll)

2. Optimal Convenience and Accessibility

Text messaging offers unparalleled convenience for patients. Consider the following statistics:

• Over 97% of Americans use text messaging regularly, making it the most widely used communication channel. (Source: Pew Research Center)
• Text messages have a 98% open rate, ensuring that payment reminders reach patients effectively. (Source: Mobile Marketing Watch)
• According to a survey, 75% of patients prefer receiving appointment and billing-related reminders via text message. (Source: West's Health Advocate Solutions)

3. Healthcare Spending and Payment Challenges

Understanding the context of healthcare spending is crucial when discussing patient payments. Consider the following statistics:

• In 2020, healthcare spending in the United States reached approximately $4.01 trillion, accounting for 17.7% of the country's GDP. (Source: Centers for Medicare & Medicaid Services)
• High deductible health plans have become more prevalent, with the average deductible for employer-sponsored plans reaching $1,644 in 2020. (Source: Kaiser Family Foundation)
• Medical debt affects a significant portion of the population, with around 137 million Americans struggling with medical financial hardship. (Source: Consumer Reports)

4. Automated Payment Alerts

Automated text message alerts provide real-time updates to patients, creating a transparent payment process. Here are some relevant statistics:

• 78% of consumers say that receiving transactional SMS alerts, including payment notifications, provides a better customer experience. (Source: Vibes)
• Text message alerts have a response rate of around 45%, significantly higher than email or phone call notifications. (Source: Mobile Marketing Watch)

5. Two-Way Communication

Text messaging allows for interactive communication between patients and healthcare providers. Consider the following statistics:

• 52% of patients prefer text messaging as a communication channel for discussing billing inquiries and payment plans. (Source: West's Health Advocate Solutions)
• Over 80% of consumers are interested in receiving responses to their questions or concerns via text message. (Source: OpenMarket)

Conclusion:

It’s apparent that text messaging has emerged as a valuable tool for healthcare providers to streamline patient payments. Its instant and accessible nature, coupled with personalized payment options, enhances convenience for patients while improving payment compliance. These statistics clearly demonstrate the effectiveness of text messaging in increasing payment rates, improving patient satisfaction, and optimizing revenue cycle management. By leveraging text messaging as part of their payment communication strategy, healthcare providers can foster transparency, strengthen patient relationships, and drive efficiency in the patient payment process. The evolving landscape of healthcare spending and the challenges associated with medical debt make it imperative for providers to adopt innovative approaches like text messaging to support patients in managing their healthcare expenses.

But as we’ve said in prior posts…just an ability to send a text won’t change your results. Having the understanding of regulations and a proven track record of successfully converting messages to payments will.?