Direct Pay Provider Network, a medical services company, sought a new solution to decrease overall costs, maximize profits, deliver greater customer satisfaction, and automate payments to reduce their work burdens. Their greatest challenge was finding a solution that proved convenient and secure for all parties involved. Ultimately, Direct Pay chose DataPath’s virtual payment solution and found that both the solution and vendor surpassed their expectations by decreasing total payment costs by more than 70 percent.
As technology rapidly evolves in the 21st century, businesses and people alike are seeking greater flexibility and security when it comes to making payments. While paying by check was standard through the latter half of the 20th century, checks have some significant downsides including high administrative and supply costs and susceptibility to fraud.
Remitting payments through virtual cards, however, does not require sensitive banking information which greatly enhances security. Moreover, the costs of remittance decrease due to all required payment information being submitted through a secure web portal in lieu of issuing a check.
Direct Pay Provider Network, of Pelham, Alabama, specializes in medical scheduling and billing for workers’ compensation, auto liability, and Medicare Advantage patients needing specific treatment procedures. Direct Pay formed in 2011 and partnered with DataPath in 2015 to use Provider Payments for remittance to providers in its network.
After four years of using paper checks to deliver payments, Direct Pay was looking to reduce their costs related to processing payments. As a small business, Direct Pay’s employees had multiple responsibilities, and automating the payment process was crucial to freeing them up for other essential tasks. Additionally, their payment processes were complex and they needed a solution that could help simplify their operations.
The Solution: DataPath Provider Payments
Direct Pay decided to partner with DataPath Provider Payments, a quick and secure virtual payment solution. The promise of quick, secure payments that could significantly reduce the costs associated with check writing was tantalizing.
Virtual card payments are a secure form of payment used most often in business-to-business transactions. As long as the recipient has a point of service terminal, they can receive a virtual card payment.
Virtual payments do not require paper or checks as the unique 16-digit card number, payment total, and explanation of benefits are accessed through a secure, online web portal. In addition, virtual payments can process in three days whereas a check can take up to two weeks.
Paul Williams, owner of Direct Pay, found the DataPath sales and implementation teams extremely knowledgeable and helpful, which added to his comfort level when deciding to adopt the virtual payment solution. In just over a month, Direct Pay had fully implemented Provider Payments as their primary source of payment processing.
After one full year of using Provider Payments, Direct Pay has found the solution to be overwhelmingly popular among its payees. Williams estimates that Direct Pay consistently pays 70% of all their network providers through Provider Payments.
In addition, Direct Pay has experienced a significant decrease in overall costs. When compared to issuing payments via check, Direct Pay saves approximately 74% on total cost by using virtual payments instead. This includes costs for postage, checks, toner, and envelopes.
How have the lower costs and high adoption rate helped Direct Pay?
The decrease in costs helps Direct Pay keep expenses under control, thereby increasing profits. Through greater automation, the company’s staff can focus on other essential tasks and feel confident that the network providers are receiving their payments. The automation has also helped decrease the amount of payment errors, resulting in less time and money spent correcting mistakes and reissuing payments.
Direct Pay’s payees are satisfied with the speed and accuracy of the payments. The quick turnaround time has resulted in increased cash flow at their practices, and their staffs spend less time reconciling claims reimbursements.