Healthcare Providers Without Payment Plans Risk Losing Patients

Providers with limited payment plan offerings may lose patients who can’t afford to settle up at time of service.

Although the worst of inflation may be behind us, consumers are still feeling the pinch as the cost of essentials such as food remain on the rise. Shoppers have been trying to make up for the shortfall by cutting subscriptions, non-essential groceries and larger expenses such as smartphones. No matter which way one looks, consumers are trying to make do with less, especially as credit card interest rates have surged with the Fed’s rate climb.

In the current economic landscape, consumers are searching for all the credit or other financing help they can get. This sentiment extends to the healthcare space, as reflected in PYMNTS’ recent collaboration with Lynx, “The Digital Platform Promise: How Patients Want to Streamline Healthcare.”

Source: PYMNTS Proprietary data N = 2,034: Respondents who were at least slightly interested in a single digital platform, fielded Sept. 7, 2022 – Sept. 13, 2022

The report primarily focuses on digital platforms in the healthcare sector. However, a top response virtually repeated across survey questions relates to consumers’ desire for payment plan or financing options. One important finding is shown in the accompanying chart: that 72% of surveyed consumers would prefer to access financing options as part of a single digital platform. That’s not all: when asked about satisfaction with online channels for healthcare activities, 60% of consumers satisfied with select online activities cited “setting up payment plans” as very or extremely satisfying. Additionally, 21% of consumers interested in a unified digital healthcare platform said finding payment options was of high importance.

This high response rate when it comes to payment plans or financing implies that for some consumers, the option could be a deciding factor when choosing a provider. Fortunately for providers, many choices and partners exist when considering a range of consumer-facing pay plan offerings. CareCredit continues to be a mainstay in the space and extends credit to qualified consumers interest-free for a fixed term.

Sector up-and-comers are offering other options as well. TempoPay offers a no-interest or fee payment card allowing qualified employees to repay medical and healthcare services through options such as payroll deductions, bank account or HSA. Last year, health FinTech PayGround launched a platform allowing providers to offer their patients access to financing, as well as the ability to manage multiple health care payments through a single digital wallet.

As economic volatility continues to strain consumer wallets, patients may seek providers who can work with their budgets. For some, that choice could be make-or-break in deciding where they seek care. By providing payment plan choices, providers could both assist and retain their patients weathering the financial storm.