Rising Costs Can Result in Delayed Care
The Healthcare Journey Research: Consumers and Providers survey, conducted by Synchrony, surveyed 2,336 consumers pursuing wellness services in cosmetic/plastic surgery, hair restoration and/or transplantation, day spa and medical spa, ophthalmic or orthopedic surgery, optometry, pregnancy and fertility, and refractive or orthopedic surgery. The survey revealed that out-of-pocket costs for these services vary by specialty; on average per care event, patients spend.
Payment Options Affect Consumer Selection of Providers
Given these costs, many consumers look to their providers for alternative payment methods or financing options that allow them to pay the full amount over time. The Healthcare Journey Research: Consumers and Providers survey found that the availability of payment options had a substantial impact on provider selection by patients. More than half reported feeling their payment options were too limited, and many said that having flexible financing available was a priority when choosing a provider.
Overall, patients have numerous options on the path to paying for wellness services, including health insurance, financial assistance (when applicable), Flexible Spending Account (FSA) and Health Savings Account (HSA) programs, in-house payment plans and third-party financing. More than half of providers surveyed in almost all specialties completely agreed or somewhat agreed that offering patients alternative payment solutions was critical to the success of their practice. Many practices reported offering in-house financing to their patients, which allows payment
flexibility that benefits the patient and may temporarily reduce outstanding accounts receivable for the provider. However, in-house payment plans often fail to address the needs of today’s patients. Providers, who essentially become the lenders, are constrained by the limited time they can carry receivables on their books. Research from KFF Health reveals that 28% of patients with healthcare debt under $2,500 anticipate paying it off within one to two years, while 9% expect it to take three to five years. Meanwhile, 8% may never pay it off, highlighting that nearly half (47%) could benefit from extended payment plan options.