Healthcare and the Role of FinTech
According to the World Health Organization, almost 100 million people are now living in poverty because of the cost of healthcare. Yet, FinTech is aggressively addressing this issue by increasing financial access to cut down on the expenses of complicated transactions and speed up payment procedures. The epidemic has served as an unexpected impetus for several sectors. accidentally bringing about a shift in their business practices and forcing individuals to adjust to new ways of living and working.
The healthcare sector is one business that has been at the center of this storm but hasn't adjusted its methods of providing its services in a meaningful way. Let me elaborate. There have been numerous remarks and academic articles regarding the concept of "digital health" and how to deliver virtual care in a setting where consultation limits exist in addition to other telehealth-related issues. This is entirely accurate. Nevertheless, I meant "effectively" change when I used the word above.
A significant, maybe even seismic shift from the way something was done previously would be necessary to effectively influence anything. I believe that has not yet occurred in the healthcare sector. How we pay for healthcare is one sector of the industry that is about to undergo a significant transformation, according to Fintech for Healthtech, which is being driven by payment simplification.
Let's explain three FinTech applications in the healthcare sector in more detail.
Getting money for medical supplies on credit is what healthcare lending implies. This loan program aids in defraying the cost of personal medical expenses such as dental work, doctor visits, and other services.
Even still, fintech for health is still in its infancy. The financial technology service sector's health lending is expanding at an exponential rate. Almost 50% of US residents utilize healthcare loans, which supports the significance of this technological breakthrough.
Furthermore, since digital lending makes obtaining credit simple, it is reasonable to predict that entrepreneurs entering this market will reap enormous financial rewards.
Examples of Healthcare Lending Startups
For those seeking healthcare but without finances, several tech businesses provide loans. The following stand out among the variety of service providers:
• The Arogya Finance
FinTech designed this digital wallet account to allow users to save money aside for medical expenses. Savings from health savings accounts are tax-advantaged in the US for people covered by high-deductible health insurance.
Although being widely accepted in many western countries, this idea is still mostly unheard of in most developing countries. According to an estimate by the American Economic Association, families that spend on preventive healthcare can reduce infant mortality in poor nations by more than 60%.
FinTech health wallets can assist in solving the issue as they offer a way to save for both curative and preventative care.
Startups with Health Wallet Examples
Tech businesses like Bend Financial, Wellpay, and Medxoom are a few examples of those promoting the usage of health wallets.
Enhanced Access to Healthcare
To attain the intended health outcome, timely utilization of personal healthcare services is a necessary component of access to healthcare. Achieving this aim necessitates quick healthcare payment, which FinTech has been promoting through significant developments.
Around 50% of the world's population still does not have access to basic health care services as of right now. But scientists predict that the number will fall dramatically over time with the appropriate combination of Technology and medication.
Even if there is still more to be done, FinTech firms are now progressing significantly. How?
FinTech brings new and enhanced digital service models to the healthcare industry. To close loopholes in the present healthcare system, fintech startups are using blockchain, AI, and machine learning.
Processes requiring intricate payment systems and operations are readily available, and all indications point to further advancements.
For instance, FinTech has made it simple for people with disabilities to receive health payments using assistive technology. Moreover, FinTech initiatives that help the unbanked become more financially included are enhancing consumers' attitudes about saving money for preventative healthcare.
Examples of Companies Increasing Healthcare Access
Now that we've spoken about how FinTech is affecting the health industry. Let's talk about a few startups that are affecting the health industry.
Overview of the 5 FinTech Healthcare Companies for 2022 That Are Worth Learning From
Several inefficiencies in the healthcare system were exposed by the Covid-19 outbreak. They are causing private businesses to start supporting a variety of health-related developments.
These change agents are in charge of bringing in particular advantages, such as improved consumer involvement, price transparency, patient financing, a quick payment system, etc.
Five FinTech businesses that are making significant improvements to healthcare are listed below:
1. SmartHealth PayCard
This financial technology service provider equips people and families with tools and solutions to make paying for healthcare more manageable.
The financial technology firm offers a SmartHealth PayCard Mastercard, a credit card that offers family members telehealth advantages and payment options. Also, it offers copays, hefty deductibles, medications, preventive care for mental health, and other things.
A credit line, a record-keeping system, secure online tracking, SMS messaging, and a cardholder website are all part of the startup's comprehensive offering.
2. Cedar Inc.
Medical organizations, hospitals, and health systems can manage the financial ecology of their patients with the help of Cedar, a fintech firm.
To guarantee that clinicians connect patients effectively, this startup's solution combines strategies from the healthcare, fintech, and advertising industries.
The platform provides cutting-edge intelligence to remove collection obstacles, increase billing efficiency, and guarantee patients receive the best user experience.
WellPay is a supplier of financial technology solutions to create products that help people manage their escalating medical expenses.
Recently, WellPay released the beta version of their platform to provide Covid-19 users with individualized healthcare service delivery. A complete product launch is anticipated to occur later this year.
The presence of inexpensive capital that can be used to fund that transaction makes up the second factor.
Thankfully, India has more than 5 million* point-of-sale (POS) terminals and 748 million smartphone users, so the first issue is resolved. The underlying infrastructure is set up and verified by the use of both physical and digital payment methods.
In summary, Wellpay streamlines communication between individuals and healthcare providers while helping manage medical expenditures.
Using pricing, payment, and mobile CRM solutions, Medxoom is a FinTech firm that assists businesses and workers in reducing healthcare expenditures. The financial technology firm offers healthcare unified billing, CRM, and comparison shopping.
By directing platform users to affordable healthcare facilities, the Atlanta-based firm lowers healthcare expenditures. It also provides consumers with a payment card, integrated net due to payment, strong payment features, and financing alternatives.
Medxoom uses a variety of tactics to assist members and companies in reducing healthcare expenditures. The techniques include member steerage, direct provider contracts, reference-based pricing, and others.
Indians paid more than $72 billion of the $115 billion in healthcare services spent this year out of their own pockets (i.e. Not paid by insurance). It essentially indicates that it was paid using savings or loans (such expenses are known as, Out-of-Pocket Expenditures or OoPE on healthcare). With an estimated 808 million individuals in 133 countries having incurred what is known as "Catastrophic Health Spending (CHS)," the level of poverty, misery, and debt caused by OoPE is expanding globally*. Here is the knowledge: The $72 billion spent by Indians on OoPE is more than twice as much as the market for smartphones in India. Compare your experience paying at any hospital or clinic to how simple it is to purchase a smartphone nowadays in India on EMI. That's sad, right?
So here is the projected region of interruption. By reducing payment friction, you give the payer—in this example, the patient or person receiving medical treatment—more control over the process. This is divided into two parts: The cornerstone of technological infrastructure, or the payments infrastructure, makes it simple for consumers to pay for the goods they are purchasing. Consider the infrastructure behind your debit or credit card transaction and how simple it is to do it at any business.