How healthcare can overcome payment challenges with better FX and treasury management
A 2022 report by Frost & Sullivan reported that with the healthcare consumerism boom, the global healthcare payments market is expected to hit $2.7 trillion by 2025, partly driven by the global pandemic which spurred on the need for innovation, as well as mental health services. The healthcare industry faces an uphill climb however when it comes to finding effective global payments, and managing their own financial operations. Being siloed by traditional banking services can leave them exposed to currency fluctuations, high transaction costs, long settlement times, and a lack of transparency over where funds are, and when they’ll land. We’ll be exploring the challenges the healthcare industry is experiencing, and coupled with intelligent solutions that will support healthcare companies in emerging markets.
Challenges to healthcare
The healthcare industry remains at significant risk of cybersecurity threats, such as fraud and hacking, whether it’s intercepting payments or attempts to obtain sensitive personal data such as medical records. According to IBM, the average cost of a healthcare data breach in 2020 was $7.13million (the highest of any industry). For emerging market healthcare which lacks advanced technology, or developed markets where there’s a reliance on legacy systems, it can leave them vulnerable to these threats. If they become a victim, then they are left with disrupted patient care, damage to reputation, and a hefty bill to rectify the problem.
Ineffective cross-border payments for the healthcare industry can cause barriers for patients trying to access care. If healthcare providers require upfront payment and are unable to accept multiple global currencies, or experience long settlement times, or even unreliable payment collection, they may refuse to treat. From a business standpoint, this interrupts cash flow, and from a patient standpoint, it means refusal of care to those in need coming from other countries or those who are visiting the country for travel or work purposes. In turn, outdated payment systems may mean an inability to accept investment from other countries for new facilities or machines that hinder the hospital or treatment centre’s ability to offer optimum treatment. This lack of confidence and reluctance to invest can have a ripple effect on long-term economic growth.
Inadequate cross-border payment systems can significantly hike up costs to healthcare organisations if they are experiencing high transaction fees, surprise charges, or unfavourable exchange rates. Delays to payments and lack of visibility over payment status can also result in additional costs to insurers and patients, as well as the healthcare providers. The payment delays, risk of fraud, and inability to track payments, as well as problems reporting on all financial operations, can impact the healthcare provider’s reputation and relationship with government and any investors. For healthcare providers in emerging markets, a limited financial infrastructure can impact their revenue and ability to get necessary equipment and effectively treat while remaining financially stable.
So what can be done to support healthcare? With an innovative payment solution, healthcare providers can communicate better with patients as they can provide a clearer and simpler way for payments to be made and received, improved communication over the status of their payment, and ability to accept in local currencies which can then be converted at favourable FX rates.
How Verto can help healthcare
With Verto, healthcare providers can gain greater control over their financial operations with full visibility over all global transactions and manage 50 currencies, all in one integrated platform. From a convenient dashboard, healthcare providers can track their patients’ bills in real-time and communicate that the payment has been received. By adopting the Verto API, companies can be instantly notified when there is an update to payments, FX orders, or beneficiaries, meaning their operations can run smoother and administrative costs are reduced.
If healthcare providers need to pay their global suppliers, or alternatively receive payments from patients in their local currency, funds can be easily moved between wallets for total flexibility. Global currencies can be held in individual wallets that lock in favourable exchange rates, with no additional costs. For improved currency exchange, healthcare providers can utilise bank-beating exchange rates for instant exchange, or enter the marketplace to set their own rates and directly exchange with other businesses and liquidity providers.
For analysing business performance, or for data-driven information to feedback to governments, reports can be downloaded and shared to provide transparency and aid decision making. Healthcare companies can minimise the risk of any cybersecurity threat with Verto’s secure platform with all sensitive information protected.
Next step for healthcare
In order to overcome these challenges, healthcare providers need to introduce an advanced cross-border payment solution that can transform their current disadvantages. This can lead to improved care for their patients, advanced technologies for their facilities, and improve their financial performance. This could not only improve the outcome of patients’ lives, the healthcare provider’s revenue performance, but also have a positive long-term impact at a social and economic level.
Get started with Verto today and let us help improve your financial operations for sustained financial stability, so you can improve the lives of others.