Offering Different Payment Options to Your Patients

Out-of-pocket health and wellness expenses can quickly overwhelm patients and clients who are already facing stressful times. A recent Gallup survey found that 12% of adults in the United States had to borrow money to pay for healthcare in the past year, while 58% believed they would face debt if they experienced a major health problem.¹ This could lead patients to forgo routine checkups due to cost, seek care only in urgent situations or be forced to choose between paying for healthcare and covering essential expenses like housing, gas and groceries.

Patients and clients may require payment solutions to help ensure they can move forward with treatment recommendations. At the same time, providers may want or need to improve the flow of payments. Keep reading to learn how offering payment options may provide an answer for patients, providers and health and wellness practices.

Patients Are Payers

Over the last few decades, patients have assumed a larger share of healthcare spending, as out-of-pocket healthcare spending grew 7.2% in 2023, according to the Centers for Medicare & Medicaid Services, even though the insured share of the population was projected to remain high at more than 92.1%.²   

These out-of-pocket costs can include deductibles, coinsurance and copays. Typical in-network copays may range from:³

• $15 to $25 for a typical office visit
• $30 to $50 for a specialist
• $75 to $100 for urgent care
• $200 to $300 for emergency room treatment

These out-of-pocket expenses can add up quickly, creating uncertainty around the overall cost of care. One survey found that fewer than 1 in 5 U.S. adults knew how much their healthcare services would cost before receiving them.⁴ 

Cost concerns can also directly impact people’s health, with 53% of respondents saying they delay health or wellness care due to expenses or out-of-pocket costs, and 76% saying they would seek more health and wellness services if they had a way to pay for them.⁵

Providers can help address patient and client concerns by putting cost management front and center and adopting financial models that offer payment options.

Types of Payment Options

Patient financing offers patients and clients a way to pay for care over time. Flexibility is one key to consider when providing patient financing options that appeal to a wide array of people because everyone has a different economic situation. Let’s look at the differences across healthcare payment solutions.

Installment loans

With this type of financing, a patient or client makes fixed payments against a balance at a regular interval and must pay off the entire bill by a specific date. Installment loans may help people budget. They provide a clear outline of the patient’s or client’s expected responsibilities to pay for the cost of a procedure, treatment or service.

Recurring payment plans

With recurring payment plans, a patient or client makes fixed payments to a provider at regular intervals, continuing until the plan is terminated by either the patient/client or the provider. Unlike a traditional installment loan, where payments continue until a predetermined balance is paid off, these plans do not necessarily have a fixed end date and may continue as long as ongoing treatment or anticipated medical expenses persist. This type of patient financing is beneficial for individuals or families undergoing long-term or ongoing treatments, for example.

Typically, payments are collected directly by the healthcare provider, often through recurring billing methods like automatic withdrawals from a patient’s funding source. While in many cases providers assume the risk of collecting these payments without relying on third-party insurers or financial institutions, this may vary depending on the provider’s policies and arrangements.

Revolving credit

With revolving credit, a patient or client is approved for a credit line up to a certain limit, which they can borrow from as needed. As they repay some or all of the balance, that credit becomes available again. Unlike a fixed-term loan, there’s no set end date; the account remains open as long as the account remains in good standing.

This financing option can be a helpful way to pay for out-of-pocket healthcare costs, such as ongoing therapy, dental procedures or cosmetic treatments, for example. Patients can use the available credit when wanted or needed, repay over time and access funds again without having to reapply for a new loan.

Third-party financing

A patient or client may be able to take advantage of financing options provided by a financing company or bank that partners with the provider. Third-party financing allows the provider to shift the collection risk to another company while being paid promptly and in full.⁶ Third-party financing may take the form of a loan or a credit card offered through an external financing source, such as the CareCredit health and wellness credit card, which offers promotional financing on purchases of $200 or more.*

In addition to these financing options, providers can remind their patients or clients about using Health Savings Accounts or Flexible Spending Accounts or direct them to government or nonprofit programs.

Benefits of Patient Financing

Many patients and clients report feeling limited by the payment options offered by their healthcare providers. According to one survey, 59% of respondents said the available options for paying out-of-pocket expenses were inadequate.⁵

Patient financing can offer advantages for patients and clients as well as their health and wellness providers.

Benefits for patients and clients

Financing payments for routine and urgent issues can help alleviate stress and eliminate worry about what-ifs. Synchrony’s Healthcare Journey Research Consumers and Providers study found that 50% of surveyed patients reported feeling anxiety, sadness, annoyance or frustration about out-of-pocket health and wellness expenses, while 40% said deciding how to pay for those expenses was stressful or confusing.⁵ Offering payment options may help patients move forward with and pay for recommended care.

This approach may also improve access for the 57% of underinsured adults who, according to a Commonwealth Fund survey, avoid necessary care due to cost.⁷

Benefits for health and wellness providers

Health and wellness providers may also benefit from offering patient financing. Giving patients and clients more ways to pay can lead to improved accounts receivable and a more consistent cash flow for providers.

Payment flexibility may also enhance the overall experience. When a healthcare or wellness practice works with patients and clients to find realistic payment solutions, it can build loyalty and trust, reducing the chances they will switch to a provider with more accommodating policies. Just as people share opinions about stores and restaurants, they also talk about healthcare experiences. Providers that offer financing options may earn more word-of-mouth referrals. In fact, the Healthcare Journey Research Consumer and Provider report found that 59% of people said access to payment options, including special financing, was an important factor in deciding where to get treatment.⁵

With financing solutions in place, health and wellness providers may spend less time and fewer resources on billing and collections, allowing employees to focus more fully on delivering quality care. These solutions could also reduce the need for additional staff or third-party services to manage outstanding balances. It may also help avoid miscommunication between outside collectors, patients or clients and the practice — issues that can negatively affect the patient experience and impact payment outcomes.

Best Practices

Offering payment options is just the beginning. Consider using these tips to create a successful and sustainable plan.

Discuss payment options with patients or clients in advance

Consider talking about options in detail before providing any procedures or services. Patients or clients likely want to know their options up front, and discussing payment early can help improve the patient financial experience. Give patients or clients time to thoroughly review all the requirements in a payment agreement before they sign.

Be clear about patient eligibility

Patients and clients may think they’re ineligible for financing options due to their financial status or other reasons, and may not feel comfortable asking about financing solutions. Clearly communicate that you offer payment options to all patients or clients, not just a limited group. Consider putting up a sign in the office, creating an easy-to-navigate web page and providing a detailed brochure about the patient payment solutions your office offers.

Offer options

Just as each patient or client is unique and requires different treatment plans, their financial circumstances may also vary. By offering options, you may be able to help a broader range of patients or clients receive care they otherwise may not seek. With each solution, consider providing documentation that clearly explains the financing options and defines their obligations.

Find the right financing partner

When choosing a financing partner, look for a company with integrity and healthcare experience. Just as you want to offer your patients or clients the most beneficial and trustworthy care, it’s important that you also provide the best payment solutions for your practice. Evaluate which healthcare financing plans work best for you and help you reach your goals.

Develop clear, consistent communication

Patients and clients likely want to have a full understanding of financial expectations. Clear communication and consistency are keys to establishing a successful patient financing program. Consider creating parameters and policies and consistently operating by them.

Automate payments

Many patients and clients may appreciate the ease and consistency of making automated payments. Likewise, healthcare and wellness providers can benefit from regular, improved payment flow.

The Value of Financing for Providers and Patients

By offering payment options, providers may be able to reach more people and receive more consistent, timely payments for their services. At the same time, patients and clients can feel empowered knowing they have a plan to pay for care. By implementing the best practices listed above, you can serve your patients or clients by helping ease cost concerns while also supporting your financial performance.

Offer Flexible Financing at Your Practice

If you are looking for a way to connect your patients or clients with flexible financing that empowers them to pay for the care they want and need, consider offering the CareCredit credit card as a financing solution. CareCredit allows cardholders to pay for out-of-pocket health and wellness expenses over time while helping enhance the payments process for your practice or business.

When you accept CareCredit, patients or clients can see if they prequalify with no impact to their credit score, and those who apply, if approved, can take advantage of special financing on qualifying purchases.* Additionally, you will be paid directly within two business days.

Learn more about the CareCredit credit card as a financing solution or start the provider enrollment process by filling out this form.

Author Bio

Kathy Marshall is a freelance writer specializing in health and wellness content. She lives in Kentucky with her husband, son, and energetic Beagle and spends much of her time at the ball fields.

Ilima Loomis is a freelance writer with more than 18 years of experience in journalism and B2B content marketing. With a background in writing about science and technology, she has a knack for taking on complex subjects and helping readers understand not only what is going on but why it relates to them. She specializes in writing about healthcare, health tech and medical research.

Healthcare payment and financing solution

The CareCredit health and wellness credit card helps improve the payment experience for patients and clients, and your financial performance.

Get Started