Home Health Care 32% of Healthcare Providers Waiting for $100K+ in B2B Payments  

32% of Healthcare Providers Waiting for $100K+ in B2B Payments  

by Universalwellnesssystems

Business-to-business (B2B) payment delays are more than just a headache for accounts receivable (AR) departments. In some businesses, overdue Payments can be the difference between success and bankruptcy.

AR experts assess the severity of late payments by measuring days sales outstanding (DSO), a metric that tracks the average number of days it takes for a company to receive payment for the products and services it provides. DSOs vary by industry. For example, in the retail sector, the average DSO is 3 to 7 days.

But as PYMNTS Intelligence discovered while creating the Working Capital Tracker;®,”Payment delays across industries: the good and the bad and ugly”, for organizations working in the healthcare sector, the average wait time balloons to 47 days.

The main reason for these long remittance periods is the time it takes to process insurance claims. These claims may be delayed depending on your individual insurance coverage, financial and medical circumstances, and your insurance company’s approval process. and more. Unpaid claims may be further delayed if the payer requests additional documentation to determine whether the claim is valid. Disputes may result in further payment deferrals.

Regardless of what slows down the DSO, waiting The amount owed alone can have a significant impact on healthcare providers. One survey found that more than 37% of healthcare providers are waiting for amounts ranging from $25,000 to $100,000, and an additional 32% are waiting to collect debts over $100,000. got it. The study found that among insurance companies, Blue Cross Blue Shield had the highest percentage of debt owed to health care providers, accounting for 23% of total outstanding payments.

And further delays may occur. According to The Working Capital Tracker®, 30% of healthcare providers say their denial rates have increased since the end of the pandemic.

However, there may be a solution to this problem of unpaid medical bills.

PYMNTS Intelligence found that many companies are beginning to use automated claims management systems to streamline the insurance claims process and avoid many common payment hurdles. Fifty-two of the healthcare providers surveyed said they are replacing outdated claims processing with advanced automated billing technology.

Another solution may be found by adopting real-time payment technology. in “Real-time payment barometer for small and medium-sized businesses: Healthcare edition” Collaboration with PYMNTS Intelligence clearing housefound that 83% of small and medium-sized businesses (SMBs) in the healthcare sector sent and received real-time payments in the last year.

The main advantages of real-time payments – speed, reliability and Transparency — seems to lead to a healthier balance sheet. 91% of his SMBs of healthcare providers cite Instant PayPal as their most used payment method to receive payments, reporting results such as: very or extremely A healthy balance sheet. The same applies to his 82% of those who mainly receive instant payments between banks.

As the graph shows, healthcare provider small businesses that have started using real-time payments to collect unpaid debts have reported a series of positive reports. 61% said they had seen it. Risk reductionMeanwhile, 57% said they received payments faster. and 52% say their overall cash flow management has improved, and 30% say real-time technology has enabled them to collaborate with new suppliers.

Overall, 78% of respondents told PYMNTS Intelligence: very or extremely I am satisfied with the experience of receiving real-time payments. Accounts payable professionals were even more satisfied, with 81% of small and medium-sized healthcare providers saying they were satisfied. very or extremely We are happy with the real-time technology for issuing payments.

Real-time payments are an increasingly popular way for healthcare provider SMBs to make and receive payments. For those still counting down their DSOs, adopting real-time payment rails may be the answer.


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