As the healthcare industry powers ahead with the help of advanced technology, it is changing how people use and pay for healthcare services. The rise of telehealth services since the pandemic is proof enough. Nowadays, patients demand clarity and transparency in their medical bills, and a wide majority of them want to explore the costs before making any major healthcare decisions.
In healthcare billing, subscription models are fast replacing one-time service models from traditional healthcare systems. You can learn more about SaaS subscription management software (https://www.togai.com/solutions/pricing-model/subscription-management/) by reading this article.
The concept of applying a subscription model to healthcare may be new to many people, and not everyone’s going to understand how it works. Our next segment unravels the details.
Types of Subscription Healthcare Models & How They Work
Subscription models for the healthcare industry are of three types:
- Concierge medicine
- Membership medicine
- Direct primary care
All three types work in a similar fashion. However, Direct Primary Care does not include insurance, in which case a separate financial arrangement is made between the doctor and patient.
Concierge medicine accepts insurance for lab tests, x-rays, and prescription medication and is a tad more expensive than Direct Primary Care.
In all three plans, patients pay an installment fee on a monthly, quarterly, or annual basis. The fee covers the doctor’s visits and consultations. Depending on the doctor’s practice, the plans may have a limited number of visits. For example, pediatricians can make any number of visits to treat children as opposed to a cosmetologist specializing in Botox treatment who will schedule only a certain number of consultations per month.
So, why is the subscription-based trend gaining preference in healthcare? Read our next segment for insights into the topic provided by leading Metering and billing platform, Togai (https://www.togai.com/).
5 Reasons Why Subscription Management Software is Popular in Healthcare
1. Easier access to healthcare from a flexible network of providers.
Subscription models for healthcare services are more affordable, convenient, and transparent options compared to the traditional fee-for-service payment structures. These models are designed to cater to the different needs of diverse audiences who want to access healthcare at their own convenience, time, and affordability. They can also choose from a wide network of providers and switch, opt in, and opt out of services at their convenience.
2. Availability of affordable healthcare.
Affordable healthcare has become a prerequisite for people across all walks of life. However, organizations still struggle to provide affordable healthcare coverage and insurance plans. Subscription-based models make healthcare more affordable since patients can choose the provider of their choice and pay only a minimal fee for the services required.
3. Better consumer awareness about healthcare.
Subscription healthcare models improve awareness among healthcare consumers. Instead of paying different fees for each doctor visit, which can become expensive, subscriptions provide regular check-ups, routine monitoring, and quick diagnosis of illnesses that may otherwise be overlooked due to lack of knowledge. Patients also get to benefit from free consultations and discounts on diagnostic tests and prescription medications.
4. Better alternatives to healthcare and focus on wellness.
Subscription-based healthcare models allow for easy access to wellness centers and alternative health approaches. Patients can schedule appointments with their primary care providers for routine check-ups and get treatment for complex conditions. Access to personalized healthcare enables greater focus on overall wellness in a global market that’s already touching $4.75 trillion.
5. Proactive approach to healthcare management.
With subscription models, patients no longer have to physically visit healthcare institutions to address health concerns that may arise. The easy access to healthcare providers enables patients to regularly monitor their health, which in turn reduces the cost of medical emergencies.
If you are a healthcare organization looking to reap the benefits of subscription models, there are several things to do to make this venture a success. Our next section explains the prerequisites for implementing subscription models.
3 Major Prerequisites to Be Successful With Subscription Models
Be prepared for accurate tax calculations.
Ensure you have the necessary tools and tech arrangements in place to accurately calculate taxes in real-time for geographically dispersed patients.
Be flexible enough to set up different product plans.
One of the major success recipes with subscription models is to provide patients with the freedom to choose any plan according to affordability, coverage requirements, number of services, and provider network.
Ensure seamless multi-party settlement.
As a healthcare organization, you need to efficiently manage payments with multi-party settlement and unified billing processes. This is a major prerequisite since there are various healthcare providers and partners in a large ecosystem.
When implementing subscription models, it is also imperative to ensure safe payment and transactional gateways so that neither the patient nor the organization ends up losing money.
How to Ensure Safety & Security With Subscription Models
Since online transactions are rife with fraudulence, organizations implementing subscription models ought to be extra careful with their online accounts. Here are some effective tips to mitigate fraudulent practices with subscription models:
- Create an industry-compliant protection plan.
- Use Address Verification Systems to verify addresses given on patient’s credit cards.
- Make CVV verification mandatory. Since Card Verification Value is not stored in databases, there are fewer chances of fraudulence during transactions.
- Implement the use of complicated passwords for software updates and user accounts.
As we move towards the future of healthcare, subscription-based models offer a promising way to make healthcare more patient-centric, accessible, and affordable. By adopting these models, patients can have greater control over their healthcare journey, with personalized care plans and continuous access to medical services. This will lead to more efficient and effective healthcare delivery, ultimately improving health outcomes for everyone across the globe.