Skorupski says progress on digital-first, patient-facing payment systems for bill pay is still farther ahead in the evolution and digitization than the back-end healthcare payments infrastructure. Colliers found that reimbursements are primarily manually processed and repaid by a physical check, as are reimbursement confirmations between providers and insurance companies, as well as Medicaid and Medicare.

Skorupski predicts these steps will soon be accelerated by the more widespread adoption of new technological advancements in the payments ecosystem.

Challenges Abound Throughout Technology Transition

Colliers found that more than 60% of providers are prioritizing the increase of online, automated, and self-service payments. However, many health systems and providers say they will need more than three years to achieve their desired digital state, especially given staffing shortages.

Janus adds that allocating funds for digitizing a paper-based record-keeping system is also slowing the digitization progress, as staff needs to be trained to operate the system once it is implemented. Despite the challenges, the National Institutes of Health indicates that regardless of specific barriers (e.g., staffing, financial outlook, equity, etc.), the digital health space "can and should act as a 'force multiplier' of the interventions to combat these challenges."

However, the process and timeline will not be immediate. "The time to build, test, and implement the new system is a long-term undertaking," says Janus.

Impacts to Real Estate and Office Space

Both Janus and Skorupski say that the technology transition will affect how healthcare real estate space is used moving forward. For example, Skorupski notes that providers will be able to "maximize their patient-facing real estate for patient interactions by shifting administrative functions to more inexpensive locations or consolidating operations in a separate location."

In addition, outsourcing some financial functions to a third party may allow providers to reimagine facility designs and reinvest in patient-facing facilities and operations.

"Outsourcing can also allow for savings on labor costs and real estate," adds Janus.

Overall, Colliers' experts say that technological progress will prompt investors, developers, and landlords to rethink office and medical space in the future as "operations ultimately embrace technological advancements and become more efficient."

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