Accepting Cryptocurrency as Payment from Patients for Provider Medical Bills

Bitcoin image by Petre Barlea from Pixabay

Cryptocurrency (Crypto) is a popular dizzying array, for the most part, of non-government regulated currency. With wildly fluctuating values, crypto is gaining more adherents each day and uses for paying bills. While not yet every day in healthcare, providers have started to accept digital currency for medical bills.  The hospitals that are known to accept cryptocurrency can be primarily found in the medical tourism industry.

Bitcoin, Ethereum, Cardano (ADA), Binance Coin (BNB), Tether, Solana, XRP, Dogecoin, Polkadot (DOT), and USD (USDC) are some of the more popular cryptocurrencies as outlined by SoFi Learn in “Understanding the Different Types of Cryptocurrency,” September 17, 2021.  CryptoSlatehas compiled a list of 21 Healthcare Cryptocurrenciesthat you may wish to review, including performance along six dimensions.

Ethereum image by WorldSpectrum from Pixabay.

Now it is true that few counties have declared cryptocurrency to be legal tender. El Salvador, for example, has mandated by law that crypto is a valid currency. In speaking with Nelson Azucena, Chief Marketing Officer, Hospital San Francisco, San Miguel, El Salvador, little movement has taken place regarding the actual mechanism for providers and other merchants to accept crypto payments. The announcement to buy crypto as a legal tender does not have yet, the necessary regulation or processes in place. Once in place, the hospital will accept cryptocurrency. We do know that the U.S. Federal Reserve is investigating the creation of digital currency, “The Fed is evaluating whether to launch a digital currency and in what form, Powell says” CNBC, September 22, 2021.

The question facing healthcare providers and their revenue cycle management companies is, how will you accept that payment if a patient wants to pay you in crypto?

And make no mistake, that this is part of the patient experience.

When the medical provider or RCM says, “we don’t accept cryptocurrency for payment at this time,” and the patient says, why not? Are you ready to explain? Or will you hem and haw, fumbling around to give an understandable semi-coherent message?

It is no longer a question of if but when.

Bitcoin acceptance image by anncapictures from Pixabay.

With Bitcoin ATMs popping up like weeds that allow you to purchase Bitcoin, it will only be a matter of time before the conversion of Bitcoin into cash will be the same.

I know that crypto is seen as an investment vehicle, but many know the value of using digital currency to pay merchants. The medical provider, in the crudest sense, is a merchant as well. So why wouldn’t the medical providers be at the forefront of accepting cryptocurrency as one of the many payment vehicles besides cash, credit, and payment plans that are now taken?

For example, PayPal on eligible purchases will automatically make crypto available to you as a funding option, as long as you have enough crypto to pay in full at that time. If you choose to check out with crypto in USD, PayPal will automatically convert Bitcoin, Ethereum, and Litecoin into USD or other currency at no additional fee. Converting crypto into cash is a more convenient option for the provider than using an exchange or peer-to-peer sale mechanism.

The demographic of the cryptocurrency holder is a desirable market segment that the hospital should attempt to attract. You can rightfully call it a niche market today, but that won’t be the case shortly as the acceptance of cryptocurrency and other forms of digital currency gains momentum.

I recommend reading “14% of Americans Own Crypto Right Now – Here’s Who’s Actually Doing It Right,”Dawn Allcot at Yahoo Finance. As reported in the article, the Gemini crypto exchange study pointed out that “of the 14 percent of Americans holding crypto, 26 percent are women. Of the 63 percent who say they are crypto-curious, 53 percent are women.”

If I were leading a healthcare provider, you could be sure my organization would accept crypto and use that as part of a Blue Ocean strategy to set myself apart from competitors.

Michael is a healthcare business, marketing, communications strategist, and thought leader. As an internationally followed healthcare strategy blogger, his blog, Healthcare Business & Marketing Matters, is read in 52 countries and ranked No. 3 on 100 Top Healthcare Marketing Blogs & Websites to follow by Feedspot.com. Michael is a Life Fellow American College of Healthcare Executives.  For inquiries regarding strategic consulting engagements, you can email me at michael@themichaeljgroup.com. 

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The opinions expressed are my own.