Can Healthcare Financing Help Your Medical Practice?
With rising out-of-pocket healthcare costs, more people are finding themselves having to make hard decisions about treatment. Medical providers can make those decisions easier by offering patients flexible healthcare financing options. This frees up a medical practice to focus more on helping patients and less on bill collection. There are many ways financing can enhance both the patient and provider experience.
It Increases Your Patient Base and Patient Satisfaction
Increasingly, patients may put off or forego treatment entirely due to lack of insurance, limited coverage, or even high copays and deductibles associated with full coverage. Procedures that are considered elective in nature are often inaccessible to patients who would benefit. By offering healthcare financing, you make treatments more accessible to people who need them. This may attract more patients who have previously put off treatment, and it also can help make elective procedures more financially manageable for those who desire treatments not traditionally covered by insurance.
Offering flexible financing options also gives patients a reason to choose your medical services over those of your competitors. Financing is a familiar concept that many customers have come to expect in other types of business; deferred interest options and approval rates for even no- or low-credit patients creates wide appeal. Higher patient satisfaction translates into better provider reviews and more personal referrals.
It Decreases Billing Hassle and Provider Costs
In traditional healthcare billing environments, it falls on the medical practice to track and collect debt owed by patients who didn’t pay or weren’t billed at point of service. Billing administrators can become overwhelmed by internally offered payment options due to a complex system of laws and regulations. When healthcare companies unintentionally fail to comply with these rules, the penalties can be daunting, and reputations can be ruined.
By contracting with a third-party finance company, the healthcare provider can eliminate this hassle and lower risk. Providers simply have patients fill out a financing application, and this is sent to the finance company for approval. In more than 90 percent of instances, financing is approved, increasing patient satisfaction and reducing billing paperwork on the part of the provider. Financing companies are intimately familiar with regulations and therefore present a much lower risk of noncompliance.
Many patient finance programs offer free enrollment to medical providers. They collect a small percentage of a procedure’s billed amount, and this is typically easily recouped by the medical provider in the form of a greater number of patients, lower administrative costs, and better payment compliance on the part of patients.