Many patients today may face higher out-of-pocket costs, including increased deductibles and self-pay portions, that can make moving forward with health care challenges. In managing the cost of care, patients appreciate and have even come to expect some level of assistance from their health care practices. In turn, some practices try to help by billing patients in-house. However, when a practice takes on the responsibility of extending credit to patients, it also incurs costs and risks, including potential late payments, bad debt, and uncollected accounts.
Benefits for practices
When a practice bills patients, the practice makes no interest in the money sitting on the books. In the meantime, overhead costs, including payroll, rent, supplies, and equipment, continue to add up while fees wait to be collected. This can create a cash flow crunch, with more money tied up in accounts receivable than coming into practice.
The benefits of making a third-party patient payment plan program available include a potential increase in treatment acceptance, patient satisfaction, retention payment within 2 business days. With third-party patient payment plans programs, more patients can get their care with monthly payments that fit their and lifestyle. Health care practices also benefit by reducing their accounts receivable and increasing cash flow.
This immediate payment health care practice allows stepping out of the payment plans relationship, giving staff more time to focus on practice-building activities. Third-party complete payment plans also can be used as a marketing tool. If patients know special payment plans options are available, then they may be more likely to seek care at that practice compared to another practice where it is unavailable.
Benefits for patients
The biggest benefit patients enjoy when special payment plans options are available is the ability to move forward with care while making monthly payments. Many payments plan programs feature added benefits to the patients such as no annual fee. Some programs provide patients with a revolving line of credit so depending on the payment plans program selected, patients may have an ongoing payment plans resource to pay for additional care at practice or with another health care provider who also accepts the same payment option. This would be subject to credit approval and minimum monthly payments are required.
The addition of third-party patient payment plans programs to payment plans policies makes it easy to let patients know a payment solution may be available that fits their budget and lifestyle. This may allow patients to get procedures they want or need. Improved cash flow, reduced accounts receivable, billing, and collection costs also make offering third-party payment plans to program a smart decision to help maintain a practice’s payment plans health.
Health care practices looking for effective ways to help patients move forward with care should not overlook the value of having payment plans options available through third-party patient payment plans programs. Providing a variety of attractive payment options not only helps more patients get the health care they need but also provides other important and valuable benefits to both the practice and patients.