The Revolution of Fintech in Healthcare Industry

Over the past years, the healthcare industry has notably digitalized. With about 2 billion users in the global digital health market health and medtech apps and platforms have a huge potential to distribute services. That’s where fintech, as a banking and payment-focused niches, comes into light, revolutionizing the existing approaches to providing healthcare services online. 

In this post, you’ll explore the nuances of the inclusion of fintech in healthcare platforms and applications. Besides, you’ll find out where fintech and medtech collide and review benefits as well as use cases of financial solutions in healthcare. 

What is Fintech in Healthcare?

Let’s get started by delving into the topic’s main concept and then progressing into the discussion of how fintech and medtech are similar at their core. 

Fintech in healthcare is the application of financial technology solutions within the healthcare sector to enable billing, patient financing, insurance claims, etc. 

The inclusion of fintech in healthcare can be seen as a manifestation of a digital-first approach to business in general. Let’s review two scenarios: Where a patient has to pay for healthcare services without and with a fintech solution assistance.

• Healthcare app without a fintech integration: A patient is billed through a healthcare app. However, they usually can’t pay for services directly within the app and have to use a banking platform for this purpose. Afterward, they have to send the receipt via a healthcare app or email and wait for confirmation of successful payment. Other ways may also be possible. Yet, none of them offers a seamless experience.
• Healthcare app with a fintech integration: A patient is, again, billed through a healthcare app. Yet, they are offered to conduct a secure payment directly within the app. Card or cryptowallet details are entered manually or with automated assistance. Loan options are offered. After the transaction is completed, the healthcare provider automatically obtains the receipt, and the confirmation of successful payment is displayed in the app. 

This is one way how fintech addresses finance-related challenges in healthcare. 

Fintech and Medtech: Where Is a Similarity? 

Most would agree that medtech and fintech are both specialized niches belonging to completely different industries. Yet, they both leverage technology. Let’s review similarities between a fintech solution, for example, a neobanking platform, and one medtech solution, such as a telemedicine platform:

• Feature the digital-first approach and operate online
• Have strict policies towards data exchange and storage as well as user verification
• Leverage external integrations for most functionalities
• Have high potential for AI and ML integration
• Must have 24/7 customer support
• May have similar monetization models based on services
• May be developed in the same software architecture paradigm
• Can utilize external physical devices like cold wallets and remote monitoring devices, respectively

To what big idea does this observation bring us? Lots of the same development and business principles lie at the heart of fintech and MedTech. Therefore, their combination can create a next-gen software solution. 

You can see how fintech and medtech overlap in the diagram below:

Examples of Fintech in Healthcare and MedTech

Healthcare fintech applications that combine fintech and healthcare or medtech, as shown above, are many. Let’s have a quick glance at the most widespread types, their descriptions, and real examples of such solutions on the market:

1. Digital health wallets: Secure digital wallets UI/UX designed for managing healthcare payments, insurance details, and medical expenses, enhancing the fintech healthcare experience. Example – Apple Health Wallet.
2. Telemedicine payment platforms: Fintech solutions tailored for telemedicine services, enabling smooth transactions between patients and healthcare providers in the healthcare system. Example – SimplePractice.
3. Healthcare crowdfunding platforms: Platforms that enable individuals to raise funds for medical expenses through community donations, supporting access to healthcare. Example – GoFundMe.
4. AI-driven medical billing: Fintech applications using AI to automate and optimize the billing process, reducing errors and improving payment efficiency in healthcare services. Example – Waystar.
5. Insurance tech for healthcare coverage: Fintech tools and platforms that simplify selecting, managing, and claiming health insurance policies within the healthcare sector. Example – Oscar Health.
6. Automated patient reimbursement: Fintech solutions that handle patient reimbursements for medical expenses automatically, reducing administrative work and speeding up the healthcare payment process. Example – Zelis.
7. Cryptocurrency for medical payments: Platforms that leverage fintech innovations like cryptocurrencies to make secure, fast payments for medical services, enhancing privacy and reducing costs. Example – MediBloc.
8. Healthcare lending: Fintech platforms that offer loans for medical expenses, enabling patients to access treatments without immediate financial strain. Example – LendingClub Patient Solutions.
9. Blockchain for health data security: Applications utilizing blockchain technology to securely store and share medical records, ensuring data integrity in the finance and healthcare industries. Example – Medicalchain.
10. Wearable health monitoring with integrated payments: Medtech devices combined with fintech features. They enable users to monitor health metrics and make direct payments for healthcare services at the same time. Example – Fitbit Pay.

You can see how all these solutions are either fintech-originated by their nature yet serve healthcare purposes, or on the contrary, more healthcare-centered but leverage fintech capabilities. Mutual inclusion of services and capabilities across industries and specialized applications is exactly what digitalization has to offer!

Benefits of Including Fintech in Healthcare 

In this section, I decided to highlight several beneficial aspects of leveraging fintech and healthcare from development and business perspectives. Afterward, I’ll conclude with a clear breakdown of the advantages of such an initiative to both fintech and healthcare businesses. 

#1 Targeting the same user groups

One of the concerns related to the inclusion of new features is user acceptance. Luckily, when it comes to fintech for health applications, user groups for both types of solutions are similar. Or at least they are not opposite in their preferences and characteristics. The list of fintech healthcare target user groups is shown in the image below:

#2 Leveraging similar development technologies 

You might have thought that adding a fintech solution on top of a healthcare app or platform requires substantial IT infrastructure modifications, software upgrades, or user training. That’s not the case. Both fintech and healthcare apps operate based on similar principles of software architecture and user flow. Here’s a list of technologies that are typically used in the development of both fintech and healthtech apps and platforms:

Note: Although fintech integration now may seem like a breeze to you, you still need fintech expertise, even if you have an in-house development team. It’s so because of specific financial service and financial data regulations, like GDPR, PCI DSS, PSD3, AML, and KYC, as well as additional concerns related to cybersecurity in banking.

#3 Overcoming traditional healthcare financing limitations

One of the common patient’s difficulties is claiming their insurance coverage or other financing benefits. At the same time, with fintech solutions, healthcare payment systems can be enabled with loans, easy insurance management, employer coverage, and more. 

The same concerns payments for services provided. Aspects like automated payments, contesting medical bill overcharges, and confirmations of payments made can be notably streamlined if a healthcare app is reinforced with a fintech integration.

#4 Mutually beneficial exchange of industry expertise 

Expertise in general finance and innovative financing is not typically included in healthcare discussions. Through the inclusion of fintech solutions, healthcare organizations can gain insights into financial technologies like payment processing, fraud detection, and financial management, which potentially may result in creating tailored financing models addressing challenges in healthcare sector.

At the same time, fintech companies acquire deep knowledge of healthcare processes, regulations, and patient behaviors, enabling them to tailor their products and services for the healthcare market more effectively. 

So, The inclusion of fintech and insurance in healthcare is mutually useful on many levels. Let’s summarize what such an initiative can offer healthcare and fintech businesses separately:

• For healthcare businesses. Integrating with a fintech provider helps address patients’ finance-related concerns. It may simplify operational processes and even completely eliminate redundant operations like manually sending payment confirmations. Besides, the adoption of fintech for the healthcare system advances the provider towards the digital health paradigm. 
• For fintech businesses. Becoming a partner for a healthcare provider opens up additional revenue streams due to new financial and banking service users. It also helps acquire healthcare industry expertise, with the prospect of potentially releasing new digital financial solutions to this market. It also helps gain a competitive edge and increase online presence. 

Are you in need of digital transformation services for fintech and healthcare businesses? Reach out to DashDevs, and let’s explore opportunities. 

Real-Life Use Cases of Fintech in Healthcare

While payment processing is normally a distinct fintech integration in healthcare apps, more complex solutions are often standalone platforms or applications. Nevertheless, they also can be integrated through API. Here are three examples of solid startups that aim to combine the best from both worlds: healthcare and fintech:

Arogya Finance —  A Healthcare Lending Startup

Arogya Finance is a health lending startup that provides accessible and affordable medical loans to individuals needing immediate healthcare services. It aims to simplify the financing process for medical treatments and surgeries, offering loans directly to patients and their families without requiring traditional collateral. The platform focuses on bridging the gap between healthcare affordability and access.

• Medical loans for treatments and surgeries
• Quick loan approval and disbursement
• No collateral required
• Flexible repayment plans
• Wide network of partnered hospitals and healthcare providers

Arogya Finance addresses the financial constraints faced by high and low-income individuals needing immediate healthcare financing. It is especially beneficial for frequent healthcare service users who may not have insurance coverage or adequate savings, providing them with a fast and flexible way to finance their medical needs.

Bend Health — a Health Wallet Startup

Bend is a health wallet startup that offers a comprehensive health savings account (HSA) solution to help individuals manage their healthcare expenses more effectively. It allows users to save, invest, and pay for qualified medical expenses all in one place, providing an easy-to-use platform for managing healthcare finances and maximizing tax benefits.

• Health savings account (HSA) management
• Mobile app for tracking expenses and contributions
• Investment options for unused HSA funds
• Integrated payment solutions for medical expenses
• Tax optimization tools

Bend is intended to address the needs of young adults, employees with health benefits, and frequent healthcare service users who prefer digital solutions for managing their healthcare expenses. It offers an easy and efficient way to track, invest, and utilize their savings, aligning with their preference for streamlined, tech-enabled financial management.

AccessOne — An Improved Access to Healthcare Startup

AccessOne is a startup that provides flexible payment plans to make healthcare more affordable and accessible to patients. It partners with healthcare providers to offer customized payment solutions for medical expenses, allowing patients to pay over time without added stress or financial burden.

• Flexible payment plans for medical expenses
• No credit check required
• Low or zero-interest options
• Transparent payment terms and no hidden fees
• Integration with healthcare providers’ billing systems

AccessOne addresses the needs of frequent healthcare service users and high and low-income individuals by providing affordable and flexible payment options for medical bills. It is designed to alleviate the financial strain of unexpected medical expenses, ensuring that patients can access necessary healthcare services without delay.

Important note! To implement fintech in healthcare, you must have relevant expertise and experience in both industries as well as in software development. For most companies, the right call is to collaborate with a trusted software service partner to have your fintech integration needs covered end-to-end. 

Here at DashDevs, we have more than 500 projects under our belt. We have worked with businesses across many industries, including healthcare. With 14 years of experience and a team of software professionals and healthcare fintech experts, we are ready, willing, and able to contribute to your best project. You can discover more about our experience and expertise from our success stories. 

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Final Take

Integrating fintech solutions in healthcare is revolutionizing how financial transactions and services are managed in the healthcare industry. From enhancing payment processing to creating more accessible healthcare financing options, the synergy between fintech and medtech offers new opportunities for efficiency and growth. 

Don’t hesitate to reach out to DashDevs should you have any questions regarding the integration of fintech for health-centered applications. We look forward to consulting you on a dedicated strategy session and discussing opportunities for your business. 

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