Earlier this month, U.S. Bancorp subsidiary Elavon and leading provider of revenue and payment cycle solutions Emdeon announced the launch of Transend Pay. It will operate as a new innovative payment processing platform for hospitals and other health care providers, and enable them to receive payments 3 to 4 days earlier compared to paper checks.
Traditionally, paper checks have been used in the healthcare industry to clear customer payments. However, a recent study by the National Academy of Social Insurance revealed that administrative costs make up around 30 percent of operating expenses in the industry compared to actual clinical costs.
Since Transend Pay will process these payments automatically with virtually no staff involvement, it would significantly cut the processing time. By reducing the payment processing time, Transend Pay would help hospitals ease stress on cash flow and cut any other associated indirect costs of manual check processing.
“The combination of our global expertise in secure payment solutions with Emdeon’s leadership position in processing U.S. health insurance claims makes Transend Pay a premier payments option for providers so they can focus on providing the best care for their patients instead of spending time and resources on tracking paper checks from insurance companies.” said Rustin Fichtne, Elavon’s SVP and General Manager for healthcare services.
With this new collaboration between Elavon and Emdeon, all claim payments from insurance payers will be directly deposited into the hospital’s bank account. Besides checking their bank statement, participating healthcare service providers who will use Transend Pay can also view all transactions on Elavon’s online customer reporting portal, MerchantConnect.com.
Commenting on this new payment system, SVP of strategic marketing at Emdeon, Mike Peresie, mentioned that “Healthcare organizations of all sizes can benefit from our strategic partnership with Elavon as we bring this faster, one-of-a kind direct insurance payment option to market.” “The launch of Transend Pay also helps to answer the growing need among healthcare providers for solutions that reduce administrative costs,” he added.