U.S. Patient Refunds: A Market Sizing

A new Aite Group report finds that although it’s a common disbursement, patient refunds lag other markets in the distribution of funds by electronic payment methods.

Boston, November 27, 2019  — The healthcare provider revenue cycle is awash with evidence of a retail transformation. But one outcome of a retail collection process is often overlooked—refunding patients for overpaying their claims. There are risks to continuing to overlook this, as the frequency of refunds could get worse before it gets better. As with any healthcare payments market, providers have options to mitigate their risk and evolve the process, and they need look no further than treasury banks and payments partners. U.S. Patient Refunds: A Market Sizing, the latest Aite Group report, explores the current state and future path of patient refunds in the U.S. market. 

“Healthcare providers’ digital payments strategies centered around engagement and collections at the point of service are disconnected from refunding patients for paying too much during the course of that receivables process,” states Michael Trilli, research director at Aite Group. “A reason for the disconnect is that refunds are an accounts payable function, but regardless of the reason, in a retail healthcare payments model, providers’ payments strategies need to bridge the divide between collections and refunds,” he explains. 

This report examines the market trends impacting the patient refund space and sizes the payments market across total payments volume, transactions, and payment methods. It is based on two data sources: a Q3 2018 Aite Group survey of U.S. consumers aged 18 and older who paid a medical bill to their healthcare provider in the 12-month period from September 2017 to August 2018 and Q3 2019 interviews of 22 executives from payments vendors and banks that offer disbursement services to healthcare providers.

To request a press copy of this report or to speak with Michael Trilli about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

Press Contact:
Siobhan Scanlan
Public Relations
+1.617.398.5064
[email protected]