Empowering Patients Through Early Financial Discussions | TechTarget (2024)

Proactive financial discussions and third-party financing options can reduce stress for both patients and providers when it comes to health and wellness services. Research from the “Synchrony Consumer Healthcare Journey” study by CareCredit identifies three key factors influencing patient perceptions of out-of-pocket costs: cost transparency, early communication, and available payment solutions.

Insurance premiums can cost an average of $477 monthly per person and $13,493 on annual healthcare expenses, even with insurance. This financial burden causes stress, anxiety, and frustration for half of those surveyed by CareCredit. Unexpected costs can deter patients, with nearly a quarter stating they would not return to a provider after receiving an unexpected bill. Over half of patients delay specialist care due to cost concerns, highlighting the importance of transparent financial discussions, the CareCredit study also finds.

Transparency & Discussing Payment Solutions Early

Out-of-pocket costs are known stressors for patients, and navigating these expenses can be challenging. Experiencing unexpected or significant out-of-pocket costs can impact a patient’s relationship with their provider. Cost considerations also impact future decisions to seek care, as Synchrony’s Consumer Healthcare Journey research shows that 53% of participants would delay medical treatments due to expenses.

To address this, consider discussing payment options as transparently and early as possible. Survey data indicates that 88% of patients believe these discussions should occur before their visit, and most prefer learning about payment solutions directly from their provider, though 20% also appreciate information via email, phone calls, or online resources. Providing information about financing options early in the scheduling process can alleviate patient concerns and influence their decision to seek services. Third-party financing providers can assist by providing training, visual aids, and digital resources, streamlining communication about payment options and reducing financial stress.

Offering Payment Solutions

Clear payment paths can significantly influence patients' decisions to seek care. Over three-quarters of patients are willing to pursue additional services if viable payment options are available, according to CareCredit’s study. Integrating third-party financing solutions provides alternative payment methods, which can ensure prompt payment to providers and offer multiple financing options for qualified patients. These solutions could be used to pay out-of-pocket costs for services like cosmetic care, hair restoration, and spa services, and include resources like payment calculators and online payment options.

Cost is a critical factor in selecting a provider.As the wellness industry grows by 5% to 10% annually, the demand for accessible payment solutions increases.Providers offering upfront payment options can attract more patients.

Simplifying the Complex

The healthcare billing process can be complex and time-consuming, making it difficult for patients to budget appropriately. Financial stress can lead to patients forgoing care, disrupting revenue cycles and affecting provider-patient relationships. Providers offering financing options can attract and retain patients, helping to increase satisfaction by enhancing the payment process. Recent data shows that 41% ofmedical groups updated patient payment plans or options in the past year, with many prioritizing improved payment processes.

Adopting third-party payment solutions can lead to higher patient satisfaction, better health outcomes, and a more positive overall experience with providers. Patients may be more likely to follow through with recommended procedures when confident in their ability to manage costs, which can result in better health and stronger provider-patient relationships.

Enhancing Patient Experience Through Financial Empowerment

Patients often face complex decisions about their treatment plans, especially with elective care. Cost considerations significantly influence their decision to seek care. The payment process for healthcare can be nuanced and complex, making it difficult for patients to understand the financial implications. Transparent financial discussions help patients feel more confident in their healthcare investments.

How to Start the Conversation

Navigating financial discussions with patients can seem daunting, but addressing out-of-pocket costs and expectations early can be helpful. Conversations empower patients to ask relevant questions and find the right treatment plan. This benefits providers by reducing outstanding account receivables when patients have more ways to pay for their care promptly. Providing patients with knowledge about healthcare finances helps build trust and respect, fostering genuine connections and enhancing the patient experience.

Having financial conversations early in the treatment journey is good practice. Whether during patient intake or consultation, providing cost estimates and discussing potential co-payments, co-insurances, and out-of-pocket costs early on helps patients feel more in control. Discussing payment options outside of insurance, including HSAs/FSAs, state/federal assistance programs, or financing — both in-house and third-party — is essential. Prioritizing these conversations early can strengthen the patient-provider relationship and support appropriate treatment plans.

By addressing financial concerns early, providing transparent payment options, and simplifying the billing process, providers can improve patient satisfaction and outcomes. This proactive approach helps patients manage their financial responsibilities, encourages them to seek necessary care, and fosters a more positive healthcare experience.

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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 patients 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

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