In recent times, the United States has witnessed a dramatic surge in credit card usage, with expenditures on essential items like groceries and gas skyrocketing by 31% and 22%, respectively. This trend reflects the relentless rise in inflation and cost of living, forcing consumers to reassess their financial priorities, a phenomenon that extends beyond consumer goods and seeps into essential services like healthcare.
Since the year 2000, the inflation-adjusted price of medical care has increased by over 114%, significantly outpacing the 81% rise in overall prices. This troubling trend poses a serious concern, as many consumers are sacrificing crucial medical care to afford other pressing life demands, despite the fact that a record 92% of Americans have health insurance.
The economic uncertainty and rising costs are driving individuals to make tough healthcare choices, often leading to postponed appointments, skipped screenings, and missed treatments. These decisions can compromise individual health outcomes and exacerbate the strain on the healthcare system.
Flexible payment options, such as payment plans, third-party lending, and Buy Now, Pay Later (BNPL), have emerged as innovative solutions to alleviate financial barriers that hinder access to healthcare services. These plans allow patients to spread out their healthcare expenses over time, easing financial burden and enhancing affordability and access to treatments and medications that they may not have the immediate funds for.
Small- to medium-sized healthcare businesses are well-positioned to implement flexible payment solutions due to their adaptability, agility, and close patient connections. They can swiftly integrate new payment options into their operations and tailor payment plans more effectively, considering the specific needs and financial circumstances of their patients.
Leveraging payment solutions like payment plans and BNPL fosters a more inclusive healthcare ecosystem. For patients, delaying care can lead to the progression of health conditions, potentially resulting in more severe symptoms, complications, and expenses. Treating health issues in their earlier stages is often more effective and less expensive than addressing advanced or chronic conditions.
Delayed care can also affect the financial stability of healthcare providers, particularly SMBs. Reduced patient volumes or delayed elective procedures can lead to decreased revenue, impacting their ability to cover overhead costs and maintain staffing levels.
Healthcare providers can help make healthcare more affordable and accessible by establishing payment plans that allow patients to spread out the cost of their care over time. Research indicates that nearly half of consumers would be less likely to delay treatment if their healthcare provider offered BNPL. However, the survey also revealed that more than half of consumers said their healthcare providers do not currently offer flexible payment options.
While payment plans can be beneficial, providers must ensure transparency and clarity in pricing structure to prevent patients from falling into cycles of debt. They can also work with patients to customize payment schedules to accommodate financial circumstances.
Beyond offering flexible payment options, healthcare providers can take other steps to ensure patients don’t skip vital appointments and that their practices don’t suffer from staff burnout. By harnessing AI tools to streamline administrative tasks, enhance personalized care, and improve patient outcomes, they can unlock a new era of efficiency, precision, and patient satisfaction.
Educating patients about the importance of regular preventive care and the potential consequences of skipping appointments can encourage continuity with healthcare visits. Implementing technology, such as automated appointment reminder systems, can help reduce missed appointments, while flexible scheduling options and telehealth visits can accommodate patients’ busy schedules and simplify access to care.
As the shift towards value-based care persists, healthcare providers that invest in care models that prioritize patient experience and improve healthcare business operations will thrive. To meet these expectations, enhanced communication, coordination of care, preventive interventions, and addressing social determinants affecting health, such as financial strain, are crucial. Adopting BNPL in tandem with innovative digital automation tools offers providers an opportunity to meet patients where they are and allows patients to continue treating healthcare as the necessity it is.
