These bottlenecks are amplified by the legacy systems that many insurance companies still rely on to manually process claims. As a result, healthcare providers are often faced with significant payment delays, triggering cash flow challenges and increased borrowing costs. At the same time, due to manual reconciliation, these healthcare providers also lack visibility into the claim payment status, putting even more strain on their billing teams.
Nevertheless, progress has been made towards improving connectivity across insurance companies and healthcare providers. Health tech platforms have emerged as vital intermediaries by disrupting the way claim settlement information is exchanged and removing the arduous paper trail that once slowed down claim processing. Yet, up until now, there has been a critical gap in the system: payments have remained disjointed from these health tech platforms.
”The healthcare industry is at an inflection point, with evolving digital-first expectations challenging industry norms,” said Raja Rajamannar, chief marketing and communications officer and president, healthcare, Mastercard. “Around the world, we’ve been working closely with healthcare organizations to better serve their partners and patients with a range of products and services well-tuned to drive simplicity, convenience and efficiency in payments and beyond.”
Supporting B2B healthcare claim settlements with virtual cards
To support healthcare providers and insurance companies, Mastercard is pioneering a first of its kind medical claim payment solution with key partners using its innovative virtual card technology.
Mastercard is introducing this solution with one of the leading financial institutions in India and Remedinet, a cloud-based health tech platform that aims to simplify the back-end of cashless claims by connecting hospitals, insurers and third-party administrators in India.
The healthcare sector in India is rapidly growing, yet considerable challenges still exist including fragmentation and lack of digitization, making the country’s healthcare system ripe for innovation. The solution is available to all insurance-network hospitals in India on the Remedinet platform, and aims to bring relief to healthcare providers and insurance companies strained by the current cashless claim settlement process.
“We’re on a mission to integrate our technology into platform providers to drive seamless B2B payment experiences at greater scale,” said Chad Wallace, global head of Commercial Solutions, Mastercard, “As we assessed industries where we can contribute with impact, healthcare emerged as a critical industry to unlock payment efficiencies.”
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