Fintech
Financial health: How innovative fintech solutions can transform healthcare finance
If you’re responsible for payments at a healthcare provider or oversee digital strategy and innovation, it’s time to see how incorporating bank payment plans for your patients and customers into your payment system can help you build patient loyalty and stay ahead of the competition while solving the medical debt crisis impacting patients’ financial well-being.
Some 40% of US adults owe money related to medical or dental care. And it’s not just a matter of patients; Healthcare providers face the challenge of providing quality care while ensuring patients’ financial sustainability.
Financial protection is achieved when out-of-pocket payments for health services do not expose people to financial hardship or cause them to “give up” on payments before they even begin. Numerous alternative lenders Globally, they are working to mitigate this crisis by issuing loans to healthcare seekers who run out of available funds.
But there are other options, such as point of sale (POS) financing from regulated banks and lenders, which place responsible financial products (for different customer credit profiles, ticket sizes and use cases) within of the patient journey. This approach to healthcare financing can harmonize the interests of patients, payers, and healthcare providers to achieve healthy outcomes for all.
The U.S. healthcare system does not provide universal coverage and there is a mix of government-funded public coverage and privately funded health coverage. This gap in healthcare financing offers banks and other regulated lenders a unique opportunity to address the economic challenges associated with medical expenses.
While in the past it was difficult to integrate financial products into existing healthcare systems, today there are solutions that make the process simple.
Healthcare providers, technology companies and regulated lenders can work together to drive growth digital transformation and fund accessibility during meetings regulations and compliance standards and protect the patient’s financial well-being.
Here are some of the benefits and outcomes of a regulated healthcare financing solution for patients, healthcare providers and lenders.
Give patients the opportunity to become debt free
In 2021, the financial burden of healthcare costs and out-of-pocket payments has expanded half a billion people in extreme poverty or have worsened their existing situation. This also often happens because patients choose to pay with credit cards or third-party healthcare financing solutions.
That’s why healthcare providers are turning to reliable, responsible financial products and services that provide real-time, fair and seamless financing to patients, effectively assisting them in managing patients’ healthcare costs. There is a growing demand for hyper-personalized payment solutions and financial products that can help patients manage healthcare costs by matching the right financing to their treatment, copay size, credit profile and more.
White-label integrated lending solutions enable healthcare providers to offer a full suite of POS financing products – from medical installment loans and lines of credit to payment plans – from leading banks and regulated lenders. These fair financing options are integrated into patients’ existing payment processes, whether accessed in clinic, over the phone or online. Patients would not need to be redirected to a payer, easing the path to treatment and building patient loyalty.
Real-time customer financing options allow patients to apply for financing via their personal devices and receive an immediate decision from the lender. Then, the payment could be made directly from the lender to the healthcare provider, or the patient could receive a virtual card to facilitate the transaction and disburse the funds.
Benefits for healthcare workers
Did you know that from 2000 to 2002 they provided hospitals of all types almost 745 billion dollars in uncompensated patient care? Late or non-payment by patients is a significant problem for US healthcare providers. They spend resources on collection activities and may experience delays in the availability of funds for operational expenses.
Some fintech solutions already offer smart health cards or zero-interest credit to ensure providers engage patients efficiently, eliminate collection challenges, improve billing effectiveness, and provide patients with a positive and simple user experience .
Embedded lending is another option, where patients are able to pay over time while providers, from fertility clinics to dentists, get paid instantly. It ensures positive cash flow and poses no risk to healthcare providers – in fact, it can mean increased revenue by mitigating affordability issues for patients. Offering patients convenient, responsible and flexible payment options leads to positive associations with the healthcare provider’s brand.
With integrated lending platforms, providers can now easily and seamlessly offer their patients financing from major banks and regulated lenders at any point of sale. In doing so, they ensure maximum patient protection by offering transparent financing options that serve the patient’s best interests and respect industry privacy and regulatory standards
Healthcare providers can also access valuable insights into patient preferences and behavior, enabling data-driven decisions and hyper-personalization of financing programs.
Long-term financial health
With a proven responsible lending system and secure storage of customer information, healthcare providers can dramatically improve patient satisfaction and loyalty. Meanwhile, patients have access to customized financing solutions that can reduce their long-term debt and ensure their financial health.
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