Fifth Third: Banks Emerge as Vital Partners in Navigating Healthcare’s Digital Transformation

The healthcare landscape is as complex and slow moving as it is vital.

But in an industry notorious for its slow tech adoption, healthcare providers are being pushed to overhaul their payment systems as digital-first solutions become the norm. Against this backdrop, the critical role of collaboration between banks and healthcare providers has taken on a new significance.

Banks have a “360-degree view into the wellbeing of healthcare providers and what they need,” Adam Keck, senior vice president, director of managed services solutions at Fifth Third Bank, told PYMNTS, including payment activity, working capital management and asset management.

In today’s dynamic healthcare landscape, payment processes and collections are becoming increasingly complex, driven by factors ranging from the digitization of remittances to changing patient expectations. Banks, Keck said, play a vital role in helping healthcare providers innovate responsibly, balancing the drive for efficiency with regulatory compliance.

And with FinTech companies pushing the envelope on innovation, banks are finding that they have to rethink how they can bring responsible — yet transformative — value to their healthcare clients.

“It’s one thing to add innovation and efficiency,” Keck said, “but we must also think about the regulatory environment.”

In this regard, banks are uniquely qualified to help providers streamline partnerships and manage the complex ecosystems they operate within, especially those with multi-bank relationships or fragmented systems resulting from mergers and acquisitions.

Digital Innovation in Enables Better Healthcare

Despite a growing push toward digitization, Keck acknowledged that paper processes remain a challenge, particularly in healthcare. Paper-based documents, such as explanation of benefits (EOBs) and denial letters, still represent significant friction points for healthcare providers. Even as more organizations move toward electronic payments, these residual paper documents introduce complexities that hinder efficiency.

For providers that still rely on paper, Keck advised focusing on technologies that can digitize and automate back-office workflows.

“You’re not going to be able to change how the insurance provider works with you, but you can help automate the back-office processes,” he said.

This approach is particularly important given the reluctance of some payers, including Medicare and Medicaid, to fully embrace electronic remittance processes.

“Anytime you get the paper out of the ecosystem, that adds value,” Keck said.

Still, he was quick to point out that simply moving to electronic processes does not automatically translate to automation.

“Electronic doesn’t mean automated,” Keck noted, stressing that manual reconciliation and workflow complexities still persist even when payments are processed digitally. “It’s really, how do you then take that and make it work for the workflows you have, to get rid of manual workarounds?”

While digitization is a critical step forward, providers must focus on end-to-end automation to truly streamline their payment processes. For many providers, the challenge lies in the reconciliation of electronic remittances with electronic funds transfers (EFTs) and integrating this information back into their electronic medical records (EMR) and general ledgers. The fragmentation of these systems continues to create inefficiencies, slowing down the payment cycle and adding operational burdens.

Future of the Patient Experience

One of the most significant changes in healthcare payments is the growing financial responsibility being placed on patients. With more out-of-pocket expenses falling on patients, providers face the dual challenge of collecting payments while maintaining patient satisfaction.

As Keck noted, this shift has lengthened the payment cycle and increased the reputational risk for providers, particularly when it comes to medical debt collection.

“Yes, quality of care is obviously the number one constraint for patients, but you’re also starting to see people select doctors and practices based upon the ease of doing business with them, the ease of making payments, and clear, concise billing,” he said.

For healthcare providers, meeting these expectations requires balancing flexibility with operational efficiency. Keck warned that offering too many disparate payment options without adequate integration can create additional back-office burdens. Instead, providers need to adopt scalable solutions that offer choice while ensuring all payment methods are seamlessly integrated into their systems.

As healthcare becomes increasingly consumerized, patient expectations for seamless digital experiences are growing. Keck pointed out that patients now expect an “Amazon-like experience” when it comes to healthcare payments, including flexible payment options and streamlined digital interfaces.

Choice is a key driver of patient satisfaction, with patients demanding the ability to pay through their preferred channels — whether via checks, digital wallets like Venmo and PayPal, or other mobile payment options.

Streamlining Healthcare Payments

Looking ahead, Keck said he sees tremendous opportunities for innovation in healthcare payments. Technologies like artificial intelligence (AI) and machine learning are expected to play a central role in building tighter integrations between payers and providers. These technologies can also enhance straight-through processing, reducing delays and errors in payment cycles.

Account-to-account payments are another area poised for growth. As patients take on more of the financial burden, healthcare providers will see an increase in card-based payments, which can drive up merchant fees. Keck suggested that account-to-account payments could help providers reduce these costs while offering faster payment processing.

As healthcare providers increasingly turn to digital solutions, choosing the right payment partner becomes crucial. Keck identified several key factors providers should consider when evaluating potential partners, including integration with EMR systems, scalability to accommodate mergers and acquisitions, and the ability to handle multiple banking relationships.

Simplification is another critical consideration. By consolidating multiple systems and banking relationships, providers can reduce inefficiencies and improve cash flow — a priority for many health systems where cash flow constraints are significant.

Keck also emphasized the potential for digital payments to serve as a touchpoint for patient engagement. For example, offering patients digital refunds or opportunities to make charitable donations through their health system can foster loyalty and create a more positive patient experience.

Ultimately, he added, the future of the space will be defined by the critical role of partnerships between banks and healthcare providers, the shift from paper to electronic payments, and the rising importance of patient-centered payment solutions.