Historically, physicians have been hesitant to get involved in the economics of healthcare.
However, many now recognize financial concerns are an important social determinant of health that can affect a patient's ability to commit to care.
During a June virtual session sponsored by CareCredit at Becker's Health IT + Revenue Cycle Management Virtual Forum, two healthcare experts discussed how providers are offering financial resources to patients:
- Shannon Burke, senior vice president and general manager of health systems, CareCredit
- Steven Merahn, MD, CMO, Essen Health Ventures
Four key takeaways:
1.) Cost considerations have become a clinical factor for many patients. Deductibles have increased dramatically and there have been a significant number of bankruptcies in the United States associated with healthcare-related expenses. "Cost does impact healthcare decisions," Dr. Merahn said. "Studies have shown people with chronic conditions often feel they are one illness away from financial risk.1 However, deferring care sets patients up for downstream challenges. COVID-19 only made this situation worse."
2.) Patients are consumers and want more healthcare payment options. Patients expect the healthcare experience to work exactly like other services they receive. They want interactions to be convenient, secure, seamless, transparent, personalized and contactless. Patients are comfortable with digital payments and want more payment options. "More than half of people ages 18 to 54 expect to learn about payment options at their healthcare provider," Ms. Burke said.2 "In addition, 69 percent of 18- to 34-year-olds and 53 percent of 35- to 54-year-olds have used payment plans to pay for healthcare.3 It's a positive experience — 97 percent who have used point-of-service financing for healthcare expenses intend to do so again."2
3.) Different types of healthcare financing are available. Three common financing models exist: in-house, third-party recourse and nonrecourse programs. In-house programs are offered by healthcare organizations and usually do not charge interest. The portion of debt collected through in-house programs is relatively low. With third-party recourse, an external financing partner pays the healthcare debt and then bills the patient. If patients fail to pay, the healthcare organization is at risk for the debt. Non-recourse financing is similar to credit cards. The risk lies with the third party who offers the financing and there is no liability for the health system.
4.) A good patient experience depends on selecting the right third-party patient financing partners. "Look for vendors who not only provide financing expertise, but also bring practice management and professional development resources to the table," Dr. Merahn said. "Make that a part of your checklist for how you judge the viability of a financing partner."
To learn more about the event, click here.
1 Source: CareCredit, Understanding the Medical Journey Research, Aug. 2019, based on self-reported statements among surveyed US adults.
2 Source: CWH Advisors PatientPay, January 2021, based on self-reported statements among surveyed US adults.
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors and/or medical providers with respect to any information presented. Synchrony and any of its affiliates, including CareCredit, (collectively, “Synchrony”) makes no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. All statements and opinions in this document are the sole opinions of Steven Merahn, MD, CMO, Essen Health Ventures. Your receipt of this material constitutes your acceptance of these terms and conditions.