Bank of America is creating a more efficient network of payment services connecting health systems, patients, insurers, provider networks, banks and the government, Insider reported Aug. 9.
The bank wants to modernize the manual payment process that doesn't allow for automation between different parties. It's also expensive, as processing a check between patients, providers and insurers can cost between $3 and $20.
The reduced costs associated with paper-based revenue cycle transactions are "easily, $16 to $20 billion," Faiz Ahmad, Bank of America's head of global transaction services, told Insider.
Bank of America acquired digital healthcare payments startup AxiaMed in April. CashPro, Bank of America's payments hub for patients, now offers AxiaMed's digital payment options for transactions made at healthcare facilities.
AxiaMed has a tool integrated with CareCredit that offers healthcare financing for out-of-pocket expenses not covered by insurance, available through the same patient portal.
Editor's note: This article was updated August 11.