More and more we’re seeing people take stock of their health and reconsider what quality healthcare means to them. As people have started putting a greater emphasis in personalizing their healthcare, they can be faced with a number of complex decisions about their treatment plans. For people looking into healthcare, this is particularly true as they need to carefully consider the right course of action for not only their physical health, but their financial health too — especially with elective procedures which are largely not covered by insurance or financial assistance. For any healthcare treatment, cost considerations can play a significant role in their final decision to seek care.
The payment process for healthcare can be nuanced and complex, making it difficult for patients to understand the financial implications of the care they are seeking out. Healthcare treatments may also range in cost depending on the level of specialization needed to perform certain procedures or orchestrate care plans. When providers prioritize and transparently address financial concerns upfront, it can help patients feel confident in investing in accessible quality care.
The Need for Transparency
Out-of-pocket costs are known stressors on patients and having to navigate paying for those expenses can be challenging for many 1. Not only are they stressful, but experiencing unexpected or significant out-of-pocket costs might significantly impact a patient’s relationship with, and perception of, their provider. In a Medical Economics report, nearly one-fourth of patients stated that if they received an unexpected bill from their provider, they would refuse to see that provider again.2 Cost considerations clearly impact future decisions to seek care and according to CareCredit's Consumer Healthcare Journey research, 53% of participants would delay or push off medical treatments due to expenses or out-of-pocket costs.3
How to Start the Conversation
It is good practice to have all financial conversations as early in the treatment journey as possible. Whether that be during patient intake or a consultation, any cost estimates that can be provided should be. Giving people an overview with the opportunity to understand and acknowledge all the financial implications of their treatment, may help them to feel more in control and educated on their investment. This is particularly important since we’ve seen that patients don’t have a strong base level of healthcare financial literacy.4
Raising potential co-payments, co-insurances and out-of-pocket costs as early as possible might make a significant impact in that patient’s ability to save and eventually pay for their care. This includes discussing their payment options outside of their insurance, including HSAs/FSAs, state/federal assistance programs or financing options — both in-house and third-party. In fact, most people wanted to know what payment methods were available to them before going to the doctor.5 Prioritizing these conversations early on can further strengthen the patient and provider relationship and lay a foundation for moving forward with appropriate treatment plans.
The Role of Third-Party Payment Options
Many patients are looking for alternative financing options to help them pay for their care, and have said they would pursue additional medical services if they had a variety of ways to pay.6 If your practice does not offer in-house financing or is transitioning away from that, you may want to consider the benefits of integrating a third-party financing option into your practice. Third-party financing options like the CareCredit credit card may help patients access and receive the treatments they want or need. Having alternatives to paying out-of-pocket expenses upfront can alleviate patient stress surrounding costs, and might encourage your patients to continue seeking care at your practice knowing they have flexible payment options available to them.
Navigating a financial discussion with a patient can seem daunting, but it is extremely important to address any out-of-pocket costs and expectations early in the patient journey. In fact, having a conversation with your patient empowers them to ask relevant questions and find the right treatment plan. It can also be beneficial for providers as outstanding account receivables may shrink when patients have more ways to pay for their care in a timely manner. Additionally, giving your patients the knowledge and context of healthcare finances helps create a sense of trust and respect, allowing you the chance to build genuine patient connections and enhance the patient experience.
Disclaimer
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual advisors 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 accepts no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.
About Synchrony
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry’s most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer financing products to customers in their channel of choice. For more information, visit www.synchrony.com.
1Healthcare Journey Research Consumers and Providers, Synchrony, 2023. CareCredit is a Synchrony solution.
2Medical Economics. Health care costs increasing physical and mental problems for patients. June 7, 2023. https://www.medicaleconomics.com/view/health-care-costs-increasing-physical-and-mental-problems-for-patients
3Healthcare Journey Research Consumers and Providers, Synchrony, 2023. CareCredit is a Synchrony solution.
4CareCredit-CWH Advisors. PatientPay 2022. March 23, 2023.
5Healthcare Journey Research Consumers and Providers, Synchrony, 2023. CareCredit is a Synchrony solution.
6Healthcare Journey Research Consumers and Providers, Synchrony, 2023. CareCredit is a Synchrony solution.