In a recent Consumer Healthcare Journey Research report by Synchronyi , it was revealed that 52% of survey respondents said they struggle to pay out-of-pocket costs for medical services, and over three-quarters said they would pursue additional medical services if they had ways to pay for them.
In short: the largest factor holding most patients back from pursuing more healthcare is based on finances. The question is, how can providers and decision makers help to address this hurdle?
For many years, Kaiser Family Foundation (KFF) polling has found that the high cost of healthcare is a burden on U.S. families and can lead some to delay needed care.ii
Concerns over cost and their ability to manage it can thus contribute to potential increases in morbidity and mortality due to preventable and treatable underlying medical conditions.iii As we know, people tend to put off care if they feel they can’t cover the costs, so if we want to help people improve their overall health, providers should be positioned to educate their patients on the payment options available to them that can help manage these costs. Giving patients access to the information they need on assistance programs, dedicated savings accounts or third-party financing options can empower them move forward with recommended care by enabling them to pay for out-of-pocket costs over time.
The Consumer Healthcare Journey Research report also found that 59% of patients believed their options for paying for out-of-pocket costs through their provider were limited, and more than half of the providers (53%) agreed that there were insufficient payment options for their patients.
Most patients said their providers offered some form of payment plan, but such payment plans can place a substantial administrative burden on the healthcare staff to follow up on outstanding payments, and additional interest on top of the base payments can cause further stress to patients.
Additionally, the survey found that transparency in cost was also important in determining how patients paid for their services and how satisfied they were with that service. About one-third of patients paid more for their medical services than they expected, largely based on the assumption that their insurance would cover more of the costs. Prior research has shown that the uncertainty of costs and payment options contribute to substantial stress on people, which further affects their physical and mental health. After receiving an unexpected bill, more than one-fifth of patients have indicated they would never see that provider again.iv
Patients not only want to know the up-front costs they will be expected to pay for care and treatments, but they want to know how they are going to pay for them. Providers can help patients make informed financial decisions about their healthcare services and expenses by educating them about what payment options are available for them, including financial assistance (when applicable), health insurance, third-party financing, and in-house payment plans. When it comes to financing options, the Consumer Healthcare Journey Research report found that the most preferred options are those that offer deferred interest or no-interest financing options, and patients most prefer to hear about these options directly from their provider.
Helping patients understand that they have financing options to manage the cost of their care is an essential step to help them move forward with healthcare services and stay on top of their continued care.
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i Synchrony. (September 2023). Consumer Healthcare Journey Research. CareCredit is a Synchrony solution.
ii Kaiser Family Foundation. (March 1, 2024). Americans’ Challenges with Health Care Costs. https://www.kff.org/health-costs/issue-brief/americans-challenges-with-health-care-costs/
iii Gertz AH, Pollack CC, Schultheiss MD, Brownstein JS. (July 5, 2022). Delayed medical care and underlying health in the United States during the COVID-19 pandemic: A cross-sectional study. Preventive medicine reports, 28, 101882. https://doi.org/10.1016/j.pmedr.2022.101882
iv Shryock T. (June 7, 2023.) Health care costs increasing physical and mental problems for patients. MedicalEconomics. https://www.medicaleconomics.com/view/health-care-costs-increasing-physical-and-mental-problems-for-patients