Editor's Note:Seton Marshall is the Chief Financial Officer of Dash Solutions, a company based in Birmingham, Alabama, that provides digital payment services and other software to employers.

Recently, dozens of news reports have discussed the flaws of paper checks. A consultant told Retail Dive, "In the payment space, checks are relics." An industry association representative said on CNBC, "Checks are inherently insecure." These views seem to be converging into a consensus: the era of paper checks is coming to an end.

However, despite expert opinions, many industries—especially healthcare—remain entrenched in this outdated payment method, as if turning a blind eye to the winds of change in the financial world.

In the rapidly evolving landscape of healthcare finance, providers face a critical choice: embrace digital payments or risk being left behind. Patient refunds still relying on paper checks is not just an inconvenience but a symptom of a larger problem threatening the sustainability of healthcare organizations.

As we delve into the hidden costs and missed opportunities of paper checks, it becomes clear that this is not merely a matter of modernization but a crucial step toward ensuring financial health and patient satisfaction in an increasingly competitive healthcare market.

The Heavy Cost of Paper Checks

Providers still heavily rely on high-cost paper checks to process patient refunds. This outdated practice is not just a financial drain but also a burden in an era of rampant check fraud, with losses estimated in the billions. Yet the cost goes far beyond money. In a consumer-driven healthcare market, patient satisfaction is currency. Consumers view slow refunds as one of the most frustrating parts of the healthcare financial experience, which is a ticking time bomb for patient attrition and reputational damage.

The Urgency of Digital Transformation

This is not about keeping up with trends but about survival in a competitive, consumer-centric healthcare environment. As profit margins decline, providers cannot afford the luxury of inefficient processes. Digital payments offer immediate cost savings and improved operational efficiency. In an era where patients have more choices, organizations that deliver a seamless financial experience will gain a significant competitive advantage.

As check fraud escalates, robust digital solutions provide security measures that protect both patients and providers. Additionally, as healthcare regulations evolve, digital systems can adapt more flexibly to new requirements. Digital platforms also offer valuable data that aids strategic decision-making and improves overall financial performance.

Conclusion: Evolve or Fall Behind

The healthcare industry is at a critical juncture. Those clinging to paper checks are not just falling behind but actively jeopardizing their own future. Digital payments are not a luxury or a future option but an imperative for any healthcare provider that values financial health, patient satisfaction, and long-term success.

The choice is clear: evolve now or become a cautionary tale in healthcare history. The era of digital transformation in healthcare payments is not coming—it has already arrived.