An ACH transfer offers a solution by facilitating transactions, reducing errors, and cutting costs. As the healthcare sector shifts toward digital transformation, learning how ACH transfers can improve cash flow and enhance patient care.
The healthcare industry is no stranger to the sophistication of payment processing. Traditional methods like paper checks and manual processes add unnecessary delays and costs. Nowadays, everyone relies on electronic or digital payment methods to enhance the transactional process.
Studies show that there were 8.3 billion ACH payments in the second quarter of 2024, an increase of 6.3% over the same time period in 2023.
Payment Challenges Faced By Healthcare Industries
1. • Additional fees: The healthcare sector has to deal with high processing fee when sending or receiving payments.
2. • Fraud Risk: The healthcare industry is a leading fraud target. Healthcare faced huge losses because of data breaches between 2022 and 2023, which increased 8.2%, from $10.1 million to $10.9 million.
3. Lack Of Flexibility: The total transaction value in the digital payments market is projected to reach US$3,073.00bn in 2024. According to the study, the majority of people make payments using digital or electronic solutions, so offering a variety of payment options is essential.
What is ACH Transfer?
ACH, or Automated Clearing House, is a U.S.-based electronic network for financial transactions. Zil offers ACH transfers, which are electronic bank-to-bank payments that go through the ACH network. Funds transfer from one bank to another with the help of a centralized system that directs funds to their destination.
ACH transfers are used for vendor payments and other direct deposit formats. They operate through a secure system regulated by NACHA (National Automated Clearing House Association), ensuring that transactions are safe, reliable, and efficient.
How ACH Benefits the Healthcare Industry?
- Affordable Transfer
Zil offers affordable ACH transfers without hidden or extra charges. The healthcare industry can save a huge amount of money by saving up the extra charges levied on transactions.
- Secure And Reliable
According to research, 51% of healthcare organizations report an increase in data breaches. ACH payments are highly secure and protected by strong encryption and strict NACHA monitoring. For a healthcare system handling large sums of money, high security is invaluable, reducing the risk of fraud and errors.
- Faster Processing
Compared to traditional payment methods, ACH transfers are processed quickly. With the same-day ACH feature, your payment is completed within the same business day. Timely payments can improve the overall efficiency of the industry.
- Improved Cash Flow Management
With ACH, the healthcare industry can better manage its cash flow by setting up payment schedules. This consistency helps in planning for expenses and investments, ensuring that your healthcare business expands without financial troubles.
- Adaptability
ACH payments are well-suited to handle the expansion of the industry. A few transactions a month or hundreds—ACH can handle the volume without any problems, which makes it perfect for growing businesses.
- Reduced Late Payments
ACH transfers minimize the risk of payment delays. This reliability is highly needed when timing is essential, such as when purchasing new surgical equipment or paying for a huge amount of medicine.
5 Reasons To Choose Zil For Payments In Health Care Industry
- Fee-Free Checking Account
Healthcare organizations handle many transactions, from insurance refunds to patient payments. Zil’s fee-free checking account eliminates unnecessary fees like maintenance and initial charges, ensuring that every dollar is allocated to essential services. With no hidden charges, healthcare providers can focus on improving patient care without worrying about costly minimum balance requirements and transaction fees.
- Multiple Checking Accounts
Managing multiple departments, clinics, or operational functions is a challenge in healthcare. Zil allows organizations to create multiple checking accounts under one platform, simplifying financial management. Each department or unit can have its own account to manage expenses, streamlining expense tracking, payroll distribution, and budgeting. This feature offers transparency and improved control over organizational finances.
- Wallet
Healthcare professionals can rely on Zil’s digital wallet to store funds securely. The wallet provides flexibility by allowing users to make payments, transfer funds, and access financial resources quickly. For the healthcare industry, a wallet feature simplifies the handling of insurance reimbursements or emergency funds, ensuring that essential services are never disrupted.
- Get Paid Early
The platform offers an early payment feature that is quite useful for healthcare management. By enabling direct deposits to arrive earlier than the usual payday, healthcare management can manage their business finances better and avoid late fees or financial stress. The extra convenience benefits the healthcare sector by fostering a healthier and more effective work environment without financial constraints.
- Corporate Expense Card
Managing expenses for a large healthcare organization involves dealing with vendors, suppliers, and operational costs. Zil’s corporate expense card allows healthcare administrators to simplify payments while maintaining control over expenditures. With customizable spending limits and tracking, the corporate expense card makes it easier to monitor and manage staff spending across the organization. The user can fund the card, deactivate and reactivate it whenever wanted. With the corporate expense card, your finances are safe, and at the same time, financial operations are efficiently managed.
Conclusion
ACH transfers offer affordable, secure, and efficient solutions for the healthcare industry’s payment needs. Combined with Zil’s innovative financial services, healthcare organizations can reduce expenses and improve cash flow management. The industry can ultimately enhance patient care and operational efficiency without financial pressure.