The most recent consumer generation has entered the workforce and is already struggling to meet its payments. Members of Generation Z are struggling to come to terms with bill payments. Therefore, it’s no wonder 53 percent are paying bills late. This is important news for practices that are considering investing in a health payment systems provider portal.
Members of Generation Z were born in 1994 or later. This generation is the largest in the United States today. Sometimes known as digital natives or centennials, they are often accused of lacking an attention span. Yet, this generation represents an impressive $143 million of buying power. However, for healthcare providers, this is the generation that already owes them money.
Understanding Generation Z
For healthcare providers to collect outstanding money from Gen Zers, they need to develop a better understanding of them. Gen Zers have a completely different approach to handling money.
Thirty percent of the people in Gen Z find billing confusing. While this is relatively understandable considering their inexperience and youth, they also approach their bills with anxiety. When paying bills, Gen Z is considered to be the most anxious age group in the U.S. The result of this is late payments.
Forgetting to Pay
It’s fair to say that late payments aren’t only limited to Generation Z. However, they are leading the way in this respect. Fifty-three percent of this generation has paid at least one bill late in the past year. This comes to an average of 46 percent for the rest of U.S. citizens.
So, is it down to the fact that Gen Zers don’t have enough money to pay? Well, interestingly, the answer appears to be -– not necessarily. The problem, apart from confusion, tends to be a lack of good financial habits. Around 35 percent of all Gen Zers just forgot to pay their bills. This generation is equally likely as their older compatriots to be able to pay their bills. They simply forget.
Making Payments Easy
It’s no wonder so many Gen Zers are struggling. Healthcare companies aren’t exactly making the payment experience easy. Studies have shown that 70 percent of people in this generation are emotionally distressed if separated from their smartphones. Therefore, formatting billing for smartphones makes complete sense. But how many healthcare organizations actually do this? Recurring and real-time payments are all useful tools for Gen Zers. These payments have helped to decrease account delinquencies. So why are more healthcare organizations not adopting them as routine?
Improving the Gen Z Relationship
Improving the rate of payment among Gen Zers may not be as hard as it appears. The key is engagement at the right level. By creating intuitive online experiences, healthcare organizations can appeal to this generation. They can simplify the process of paying for medical services by using a web portal. By offering portals that give Gen Zers access via cell phones, practices can increase their chances of receiving timely payments.
Introducing innovative ways to pay, such as text payments, could be a good option for healthcare practices. Also, evidence has shown 82% percent of Generation Zers would prefer to manage their own debt negotiation tools. Seventy-two percent of late payers would have paid on time if they’d been able to use a credit or debit card. Gen Zers are the most frustrated when they’re unable to use their favorite cards to pay.
BillingTree’s Health Payment Systems Provider Portal
BillingTree offers a cutting-edge health payment systems provider portal to address the demands of Gen Z. By offering a wide range of payment options, BillingTree caters to the needs of this generation. By putting these solutions in place, practices can reap the benefits of more timely payments.