Mastercard to Unlock Efficiencies in B2B Healthcare Payments via New Partnership

Mastercard (NYSE: MA) says that it is focused on unlocking efficiencies in B2B healthcare payments through innovative partnership

As noted in an update from Mastercard, the firm will assist with “scaling the use of virtual cards to bring faster payments and reconciliation to healthcare providers and insurance companies ”

As mentioned in a blog post, fragmented, slow and inefficient payment processes “have long been a challenge within the healthcare ecosystem. Just as a patient may be frustrated by cumbersome insurance claims, healthcare providers too experience their own set of holdups when dealing with claim approvals and payouts.”

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.”

Raja Rajamannar, chief marketing and communications officer and president, healthcare, Mastercard, said:

”The healthcare industry is at an inflection point, with evolving digital-first expectations challenging industry norms. 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 supporting “a 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.”

The end-to-end solution works by “embedding virtual cards within the health tech platforms that connect payers and healthcare providers, such as Remedinet, using API connectivity. Integrating Mastercard’s innovative virtual card platform, which makes complex B2B payments fast, easy and secure, holds promise for the healthcare industry.”

Through this embedded experience, the moment the authorized claim “is submitted to the insurance company, a virtual card is generated by Mastercard and issued by a financial institution to the healthcare provider.”

For hospitals or other specialty healthcare centers “that previously spent months waiting to receive claim payments, virtual cards provide a critical working capital solution by making the payout process nearly immediate.”

Placing virtual cards within the health tech platform also “enables detailed transaction-level data to flow alongside the claim settlement information for every bill that is paid with a Mastercard branded commercial or virtual card.”

This brings several benefits to insurance companies “making the claim payment, including greater transparency into the claim status as well as easier and automated reconciliation.”

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