The Embedded Payments Advantage—Why Healthcare Platforms Can’t Afford to Wait

For patients, navigating medical bills can be more stressful than the care itself. Outdated, manual payment processes are inconvenient, opaque and riddled with friction—frustrating patients while damaging the financial health of healthcare organizations. From unclear pricing and confusing billing statements to clunky third-party payment portals, today’s payment experience leaves both sides dissatisfied.

When patients experience payment friction, they sometimes delay or skip payments, meaning providers face cash flow challenges and trust in the system erodes. But there’s a better way. Embedded payments transform the financial side of care by streamlining the payment process, offering transparency and enabling seamless transactions. The result: a smoother payment experience that benefits patients and providers alike.

 

Outdated, Manual Payment Processes Frustrate Providers and Patients

Manual payments are a hassle for patients and providers. Outdated systems lead to:

Inefficiency and cash flow problems. Manual healthcare payment systems create inefficient workflows. More than two-thirds (67%) of executives and decision-makers in healthcare payer organizations say their firms’ manual payment platforms are reducing efficiency.

CSG Forte President Saurabh Joshi recently told PYMNTS that “non-digitized payments—cash, paper checks, money orders—introduce several operational challenges, such as manual processing errors, delayed reconciliations, record-keeping issues, increased administrative burden and security and fraud risks. These challenges lead to increased costs, losses and cash flow issues for healthcare providers, which can hurt business operations and outcomes for these essential businesses.”

Poor patient experience. Medical bills are a source of anxiety and frustration for patients. In a survey of 1500 patients, more than half said paying a medical bill is stressful. Outdated, friction-filled payment processes can make an unpleasant situation even worse–frustrating patients, delaying payment (resulting in late fees), and leading to churn.

Friction is common in the healthcare payment experience. Almost half (44%) of consumers reported at least one issue when paying for their latest healthcare service, according to PYMNTS research. Younger patients are the most likely to experience payment challenges, with 68% of Gen Zers and 63% of Millennials reporting at least one issue. Fewer Gen Xers (37%) and Baby Boomers (18%) had difficulties.

 

What payment problems do patients encounter?

• Lack of transparency: Opaque pricing is a top patient complaint. Copays, deductibles and out-of-network labs and anesthesiologists (surprise!) mean that many patients don’t know what they owe before—or even after—a visit. “We’ll send you a bill” is the last thing patients want to hear as they head home after a procedure. In fact, transparency and communication issues—such as unexpected costs and unclear billing statements—were the most frequently cited problems for all ages, experienced by more than 40% of patients born after 1978. More than half (53%) of patients find understanding their health insurance coverage and benefits stressful, and 53% find comprehending what they owe stressful. More than a third (40%) are not satisfied with provider billing.
• Inconvenience: Across industries, 91% of billers receive complaints from customers about how inconvenient it is to pay their bills, according to PYMNTS research. Login and authentication problems, lack of autopay options, and being redirected to a third-party payment portal (that doesn’t work) waste time and frustrate customers. Compared to other industries, healthcare ranks low in ease of payment, with only 8% of consumers indicating that healthcare payments are easy. Patients often experience frustration and confusion regarding payment processes, including where, how, and how much to pay. Other industries provide simpler, more efficient, and more convenient payment methods.
• Not enough choice in payment methods: More than a third (34%) of billers reported receiving this complaint. Another PYMNTS report found that more than 25% of patients born after 1978 experienced payment method limitations, including a lack of digital payment options. Across industries, 41% of executives at smaller firms (less than $10 million in annual revenue) and 25% at large companies (annual revenue over $500 million) said lack of payment choice was their top recurring complaint from bill payers.

 

Healthcare providers feel the pain of all that friction:

Late—or no—payments hurt the bottom line. Customers who don’t understand their bill—or find it a hassle to pay—may delay payment or not pay at all. More than a third (37%) of patients will not pay their bill if they cannot understand the administrative experience.

Furthermore, across industries, millennials are more likely than other generations to skip bills that make it hard to pay. Almost a quarter (23%) of millennials who prioritize paying certain bills over others pay bills that are easy to pay first, compared to 19% of bridge millennials and 18% of Gen Z. Late payments disrupt healthcare organizations’ cash flow and increase collection costs. Uncollected payments and write-offs decrease revenue.

Dissatisfied patients find a new provider. The avoidance of payments friction is a key determinant of patient loyalty to their healthcare providers, despite high levels of patient satisfaction with the care that they provide. About 63% of consumers say they’d switch healthcare providers if unhappy with their experiences—including how they pay for care and discover its costs. Top reasons for switching providers include the lack of a cost estimate before an appointment (38%), a complex billing process (36%) and the absence of a payment plan or third-party financing (27%). What’s more, 32.5% of patients would switch providers for payment plans and the availability of digital payments.

 

Embedded Finance and Embedded Payments: The Cure for Ailing Payment Processes

Just as modern medicine treats the root cause of illness, embedded finance and payments address the underlying problems in today’s clunky healthcare payment systems.

Embedded finance: Embedded finance solutions implement financial services directly into nonfinancial apps, websites or other platforms. Healthcare organizations can offer patients convenient payment options (such as payment plans) within the patient portal, enabling seamless transactions for medical services and streamlining billing processes.

Embedded payments: Although people often refer to embedded finance and embedded payments interchangeably, the terms differ in scope. Embedded finance encompasses a broader range of financial services, like financing or insurance options. In contrast, embedded payments specifically focus on integrating payment functionalities directly into apps or websites. Embedded payments enable patients to make transactions seamlessly within a website or application without being redirected to external payment gateways. A patient logs into the portal to view test results and can see an outstanding balance, then pay it directly within the portal without being redirected to a separate billing site.

 

Three Benefits of Embedded Finance and Payments

Convenient payment experiences lead to more on-time payments and patient retention. Embedded payments reduce friction, making it quicker and easier to pay. Patients have a choice of payment methods, including credit or debit card, Automated Clearing House (ACH), or digital wallet. Greater convenience leads to prompt payment and increased patient satisfaction and retention.

When healthcare providers offer financing options within their portals, they make it easier for customers to complete transactions without leaving the site. This increases the likelihood that patients will make a partial payment right away. Furthermore, embedded payments provide a feeling of security that portal redirects cannot. Redirecting patients—especially less tech-savvy ones—to an unfamiliar checkout page with different branding can feel disjointed and raise security concerns.

Transparency improves trust. When financing is embedded in portals, patients know their costs and payment options before they sign the treatment consent form. This price transparency strengthens trust between patients and providers. Providing upfront digital cost estimations—breaking down treatment costs, insurance coverage and financing options—empowers patients to make informed choices about their care, reduces unexpected bills, and builds healthy relationships with providers.

Embedded finance boosts revenue. By integrating financing options directly into their portals, healthcare organizations can generate revenue through fees, interest or commissions. Embedded finance also increases customer engagement and loyalty by providing convenient financial solutions such as personalized payment plans. Greater loyalty translates into greater customer lifetime value.

 

Take Advantage of Embedded Finance and Payments with CSG Forte

Embedded finance eliminates the friction of outdated medical payment systems by bringing payments and financing directly into patient portals, where people already manage their care. By improving convenience, transparency, and trust, it boosts on-time payments, strengthens patient loyalty, and protects providers’ revenue.

Not sure where to start? CSG can help. We work with our partners to offer healthcare organizations embedded finance solutions, making it easy to manage transactions while offering patients the most modern, streamlined financing options. CSG Forte, our world-class payment platform, is backed by exceptional customer support. CSG Forte integrates seamlessly within your existing platforms, enabling you to offer your patients the financial options they need to complete transactions. We supply everything you need to implement our solutions quickly and accurately.

CSG Forte’s secure healthcare payment solutions are just what the doctor ordered!