The key to modernizing healthcare: Embedded banking

In the next evolution of healthcare, Revenue Cycle and Practice Management software providers can excel in more ways than one.

Differentiation becomes a challenging endeavor with hundreds of Revenue Cycle Management (RCM) and Practice Management (PM) companies in the U.S. targeting a finite set of healthcare practices. Capabilities are similar, pricing is similar, and even some of the logos look similar. Right now, winning a new practice comes down to user experience and one or two features that fit the practice's needs, but the winning margin is razor-thin.

It is tough to profitably win new practices, which is why RCM and PM companies should explore new growth opportunities beyond their core business model. RCM and PM companies can embed banking into their platform to tap into new profit pools and improve the practice, provider, and patient experience.

Specialized software already provides core healthcare capabilities, and now the technology extends into banking which drives revenue, creates stickiness, and improves the customer experience.

Embedded banking is a perfect fit for RCM/PM platforms due to the high engagement level of providers and patients. This engagement allows software platforms to offer highly relevant banking products within their experience.

• Meet them where they are – Provide products across all tools and portals.
• Give them what they need – Embed highly relevant, proactive banking offerings into your platform.
• Be available when they need it – Suggest solutions that are natural to the practice or patient journey.

Embedded banking provides four ways for RCM platforms to drive financial performance in the next evolution of healthcare.

1. Monetize your payments

   While Payment Facilitation (PayFac) is not a new solution within embedded banking, it still has not become mainstream. Software companies have taken a horizontal, non-industry-focused approach, which ignores many healthcare complexities, while banks and processors are struggling due to the need for more technology. KeyBank Embedded Banking makes payment facilitation a reality for RCM and PM companies. For those RCM and PM platforms that venture into payment facilitation, the profit and valuation gains can be considerable when done with the industry in mind.

2. Provide new revenue opportunities

   The new reality of embedded banking enables practices to make money outside of providing healthcare services. PM and RCM referral programs would allow practices to earn revenue while offering value-added services such as equipment financing, branded cards, and student or procedure loans. Empowering RCM and PM practices to generate banking revenue means a higher differentiator and stickier practice.

3. Collect more patient billing

   KeyBank Embedded Banking helps practices collect more of what they are owed and in a much shorter timeframe. Many RCM companies have added in pay by card and text reminders, but additional opportunities exist, like patient financing and discounted ACH payments with same-day settlement. All of these options will help practices collect what they are owed in a faster and cheaper way.

4. Win over doctors

   Embedded banking can provide RCM and PM platforms new avenues to build relationships with individual care providers within a practice – doctors, nurses, clinicians, and more. Embedded financial solutions can be tailored to these professionals, such as medical school student loan consolidation, online financial advice, wealth management (Robo-advisor) by career stage and specialty, and loans with underwriting rules attuned to medical professionals. To dive deeper into lending, doctors in the initial stages of practice are commonly in the "high earning, not rich yet" (HENRY) segment. HENRYs are often presented with poor loan terms in traditional underwriting. By embedding lending products that are fine-tuned for medical professionals, even by practice area, RCMs/PMs can deepen relationships with their practices.

KeyBank Embedded Banking enables healthcare PM and RCM practices the option to embed banking into their experience. It's FinTech technology backed by 200 years of financial services expertise. Together our integrated solutions offer a full suite of modern banking services. Let us show you how our end-to-end solution, from the provider to the payment, works, and allow us to help you see how it can benefit your solution.

To learn how Embedded Banking can drive financial performance for your healthcare organization, email keybank_commercial_payments@keybank.com.