Finances are a barrier many patients face in the healthcare industry. If patients are required to pay their entire medical bill in one deposit, they may opt out of necessary care. Or, they may use credit cards and personal loans to cover the cost, which can carry high interest rates. If patients cannot pay off their card balance, it could negatively impact their financial future.
More medical service providers recognize the need for an alternative to traditional financing options. Many fill the gap with patient financing programs to address patient needs while empowering them to prioritize necessary care.
What Is Patient Financing for Practices?
Patient financing programs allow patients to pay their bills over time so they can get immediate care regardless of their ability to pay upfront. In addition, these programs may have a 0% financing option, which is more financially savvy than credit cards and personal loans.
Patient financing can be structured differently, including third-party and internal. When a patient enrolls in your internal financing program, you collect their credit information at their appointment and charge their account in installments. If the patient defaults on a payment, your medical practice may be responsible for their bill. For patients ineligible for your in-house program, offer third-party financing options.
Other structure options include:
- A medical credit card to cover medical expenses with no interest for on-time payments.
- A program with flexible term lengths and no interest.
- A monthly payment plan with a 0% annual percentage rate (APR) or low interest rates.
- A medical practice loan through a third party to cover healthcare expenses.
Benefits of Patient Financing Services
Why offer patient financing? These programs provide these significant advantages for your practice:
- Increase revenue by enhancing flexibility and reducing your accounts receivable.
- Attract new and retain current patients who need financing options to get care
- Build patient trust by showing you’re willing to work within their financial ability.
- Simplify billing and collections for your office staff.
Patient financing also benefits patients. With a financing program, individuals can:
- Afford healthcare services by paying in installments instead of in one payment.
- Take charge of their health by seeking care they couldn’t afford without a financing program.
- Seek medical attention right away with quick and easy funding.
- Have a positive experience and continue seeking your care services.
Contact Rectangle Health Today
Rectangle Health can help your practice set up a financing program with our patient financing solutions. Help your patients afford care with zero risk for you.
Applicants determined to be in Open Bankruptcy, Fraud Alert or on the Terrorist Watch List during the application process will be declined. Patients covered by government payor programs for a procedure are not eligible for financing of that procedure. Government payer programs include Medicare, Medicaid, the State Children’s Health Insurance Program (SCHIP), the Department of Defense TRICARE and TRICARE for Life programs (DOD TRICARE), the Veterans Health Administration (VHA) program, and the Indian Health Service (IHS) program.
