Patient Financing: Providing Peace of Mind and Easing Cost Concerns

Large deductibles and out-of-pocket costs may cause patients to delay or decline recommended chiropractic treatment. What can you do to ease patient cost concerns and help them move forward with the care they want and need? DCPI Interviewed Rob Morris, Vice President of Marketing for CareCredit, explains how adding a patient financing program to your financial policy can benefit both your patients and practice.

DCPI: Why should chiropractic practices consider adding a patient financing program?

Rob Morris: Most practices have a financial policy in place that requires payment at the time of treatment by cash, check or major credit card. However, in today's economic environment patients appreciate and have even come to expect options from healthcare providers when it comes to managing the cost of care. Adding a patient financing program to your financial policy allows you to make a financial solution available to patients without taking on responsibility for in-house billing.

DCPI: Why do you feel adding a patient financing program through a third-party is a better option for practices than billing patients in-house?

RM: When a practice takes on the responsibility of billing patients in-house, they incur the cost and risk associated with it as well — including late payments and uncollected accounts. And while nearly every healthcare provider has some degree of accounts receivable, in-house billing can have a significant impact on a practice's bottom line. In fact, when you consider your investment of time and resources to process payments, track down late payments and make collection calls — the cost can be considerable. In addition, when attempts to receive payment are unsuccessful, there is a risk of uncollected accounts, which can become a bad debt write-off that can further impact a practice financially.

Extending credit to patients in-house can also be expensive to your practice in terms of reduced cash flow and money sitting on the books. You may see accounts receivable as a necessary part of doing business, but while fees wait to be collected, overhead costs such as payroll, rent, supplies and equipment, continue to add up. Within just a few short months, a practice could find itself in a cash flow strain, with more money tied up in accounts receivable than coming in. When financing is available through a third-party financing program, it enables practices to focus less on accounts receivables and related administrative activity and more on helping patients get the treatment they need, and everybody maintains their financial health.

DCPI: How does third-party financing work?

RM: Using a third-party financing program is easy. Patients apply for financing directly with the financing company, and after the patient is approved, the provider is charged a processing fee for the transaction as with any credit card. (The fee may vary based on the type of financing used or the company the practice accepts.) In most cases, the practice receives payment in full directly from the third-party financing company. Because it's easier to fit the cost of care into a monthly budget, many patients prefer this option in order to move forward with recommended treatment.

DCPI: What should a practice look for when choosing a program?

RM: Because financial needs differ from patient to patient, you want to select a patient financing program that provides a variety of options and meets the needs of today's patient. Programs that provide options such as special financing for 6 or 12 months on qualifying purchases of $200 or more are popular with patients. Also consider the initial costs to patients, which make options that feature no up-front costs or annual fees more attractive. Companies that offer a simple and quick application process, fast credit decisions and multiple processing options for your office make integrating third-party financing into your daily routine even easier.

DCPI: How and when does the practice get paid?

RM: One of the key benefits of making financing available through a third-party is that you are paid for your services up front, eliminating the need to bill the patient. However, not all companies are the same, so be aware that some may pay the practice within two days, while others can take much longer. That's why it is important to understand the policy of the financing company you choose and how the payment will be delivered. For example, direct deposit to an authorized account may be the most efficient method.

DCPI: Getting team buy-in is important when introducing any new program or practice procedure. How should a practice introduce patient financing to the team?

RM: You're absolutely right. Once you have added a patient financing program, it's critical that your team is trained so that everyone understands the terms, options and processes. It's also helpful if team members practice with scripts and conduct role-playing, so that they are comfortable presenting and explaining the financing program in a consistent manner to all patients. Your team can be a major resource to help educate patients about payment options available in your practice and should be comfortable informing or reminding patients that financing is available. Look for a program that provides enrolled practices with free patient brochures, counter signs and other display material, as well as support for your internet and online marketing initiatives to inform patients about your practice's available payment options.

DCPI: How should the practice introduce financing to patients?

RM: Practices can educate patients about their financial options throughout their visit, starting with the time the appointment is set and when the patient is researching your practice online via a link on the practice's website and Facebook page. In-office education includes displays, signage and brochures in the waiting room. During the treatment consultation, the team can proactively present financing to patients to address cost concerns they may have and help them to move forward with recommended care. Be sure to discuss the benefits to patients, including the ability to make monthly payments (subject to credit approval) and any specific program benefits such as no up front costs or annual fees. Here's an example of how practices can introduce financing options to patients during the consultation: “Mr. Jones, the cost for the treatment we've discussed is going to be $1,100. We anticipate your insurance benefits will cover $600, leaving you with an out-of-pocket expense of $500. We have several convenient payment options to help you get the care you need. Let me go over them with you. Of course we accept cash and checks. We also accept Visa, MasterCard and American Express. If you are approved, special financing options are also available and you can make monthly payments. Many of our patients really appreciate this alternative. We can take a look and see what your monthly payments might be. Would you like more information about this?”

DCPI: Are there other advantages to making patient financing available?

RM: One advantage that is often overlooked is the fact that it can also be used as a marketing tool for the practice. If patients know that you offer special financing options, they may be more likely to seek care at your practice than at another practice that does not. Most patient financing companies provide free marketing materials, including patient brochures and counter displays. Be sure to take advantage of these materials and display them in your waiting area and consultation rooms. You can also highlight the benefits of financing in your new patient materials, on your website, and as part of your marketing and advertising activities.

Add patient financing to give patients a payment solution that fits their budget and lifestyle and to help them to move forward with the chiropractic care they need. Increased treatment acceptance, reduced A/R, and improved cash flow are benefits that can help your practice stay healthy, too.

Rob Morris is vice president of marketing and new business development for CareCredit. Mr. Morris joined CareCredit in 1993 and has more than 35 years of experience including executive level marketing and sales positions with leading healthcare companies.