It's no surprise that healthcare consumerism and rising healthcare costs are impacting patient expectations. The need for price transparency, online product and provider information, added value for their healthcare investments, and appealing payment and financing options that fit their budget are impacting the decisions patients make about their care.
Recently, CareCredit surveyed nearly 2,100 Americans between the ages of 18 and 69 who had visited a physician or healthcare facility within the last year. They wanted to gain a better understanding of patient experiences and perspectives on how medical costs impact their healthcare decisions.[1]
Tim Donovan, Synchrony Senior Vice President and CareCredit Chief Marketing Officer, shares the results of this research and offers insights that can help providers and healthcare organizations get a better understanding of the patient financial experience and the impact on their business.
Question: How does cost impact a patients' decision about their healthcare?
Tim Donovan: We weren't entirely surprised when we analyzed this data – 43 percent of the patients we surveyed said that either they or a family member had changed his or her behavior due to costs. Unfortunately, nearly all of those changes involved decreased or delayed care.
Breaking it down further, 37 percent said they put off medical or dental services, and 20 percent did not fully comply with their recommended medical treatment plan. This data shows just how seriously costs can impact patient healthcare decisions.
Q: Do increased cost and billing sensitivities impact the selection of a service provider?
TD: No matter how much providers work to deliver quality care for their patients, our research shows that high costs or poor billing experiences can undermine even a patient's most positive clinical interaction.
In fact, according to our survey, nearly two-thirds of respondents (65 percent) said they would consider switching providers after receiving an unexpectedly high bill, and 28 percent said they would be very likely to do so.
In addition to "sticker shock" (a bill for service that was higher than anticipated), the inability of a provider to provide cost estimates for a visit or procedure was cited as a potential reason to make a switch. Nearly as many (59 percent) said they would consider a change if "office staff could not tell me the cost" of a visit or procedure.
The fact of the matter is that the financial experience, while woven throughout a patient's care journey, often concludes it. This means it can make the last — and most lasting — impression. In the age of healthcare consumerism, how a provider handles this critical piece of the journey can make all the difference.
Q: How do you define the patient journey?
TD: To better understand patients' financial experiences and the factors that may be affecting their decisions throughout their healthcare journey, our research focused on six key stages:
- Initial recognition that some form of care is needed
- Scheduling an appointment
- Appointment check-in
- Seeing the medical professional
- Check out
- Receipt of the invoice for any balance due
Q: How do patients react at these different stages?
TD: Patients' emotions vary at different points in the journey, and the nature of the appointment — routine check-up, follow-up visit or unplanned care — can make a big difference as well.
Not surprisingly, the most stressful scenario tends to be the realization that some form of unplanned care is necessary. According to those surveyed, this caused patients stress in 78 percent of these cases.
Regardless of the nature of the appointment, recognizing that healthcare was needed was the most stressful part of the journey with 60 percent of patients experiencing some level of stress.
Following closely behind this, receiving an invoice post-visit (53 percent) was nearly as stressful as the initial realization.
Q: Where do patients think the responsibility for information on healthcare costs resides?
TD: Almost half the people surveyed (49 percent) recognized they bear some responsibility for finding the cost information they need. However, nearly just as many (48 percent) expected the medical staff working at the facility to be able to supply this critical information. A slight majority (54 percent) believed their insurance company should provide answers when it comes to cost.
Yet, despite the importance of cost and recognition by so many patients that they need to do their due diligence too, fewer than 15 percent of patients researched cost information before seeking care. Among those who did look for cost information, patients preparing for follow-up appointments were more likely to spend significant time (more than 1 hour) doing so. They were also more likely to report difficulty in finding the information they needed.
Q: What are some opportunities for healthcare providers to positively impact a patient’s financial experience?
TD: Once patients engage with a practice or healthcare facility, staff and providers have an opportunity to provide information on cost and payments throughout the process. However, this is not happening in most cases. At every stage of the journey, more patients report wanting cost-related information than say they received it.
Healthcare providers that are able to offer some level of cost transparency and a reasonable path to manage these costs can greatly reduce stress and positively impact decisions about care. Simple, honest conversations that help patients understand their financial responsibilities, including copays and deductibles, can go a long way toward building trust. Connecting patients to financial solutions that can help ease the pain related to costs can also really help your organization stand out. More flexible financial options can include payment plans or adding new payment methods like the CareCredit credit card.
For patients, a third-party payment solution like CareCredit lets them pay over time for out-of-pocket costs without tying up cards they use for other monthly expenses. Plus, promotional financing options can offer a better way to fit medical costs into their monthly budget.* For healthcare providers it means they can devote less time to billing and collections, receive payment in two-business days with no recourse if patient defaults or delays payment, and focus more on delivering the best possible patient care.** As costs continue to impact patient decisions, providers who focus on delivering a positive patient financial experience can make a positive impact on the overall healthcare experience. That's a win-win.
To learn more visit, CareCredit.com/beckers.
A pioneer in healthcare financing for more than 30 years, the CareCredit health, wellness, and personal care credit card gives patients a way to pay for out-of-pocket healthcare costs while fitting payments into their monthly budget.* Providers receive payment within two business days, with no liability if the cardholder delays payment or defaults.** Today, more than 11 million CareCredit cardholders can use their card to pay for care at 230,000 U.S. locations. For more information, visit carecredit.com.
*Subject to credit approval. Minimum monthly payments required. See carecredit.com for details.
** Subject to the representations and warranties in your Agreement with CareCredit, including but not limited to only charging for services that have been completed or that will be completed within 30 days of the initial charge, always obtaining the patient’s signature on in-office applications and the cardholder’s signature on the printed receipt.
[1] CareCredit, Understanding the Medical Journey Research, August 2019