MGMA Business Solutions: Claude Royster on improving the patient financial experience

On this episode of the MGMA Business Solutions Podcast, host Daniel Williams sits down with Claude Royster, Vice President and General Manager of Health and Wellness at CareCredit. As a returning guest, Royster shares how CareCredit empowers medical practices to enhance patient experiences, boost revenue, and streamline financial processes. This discussion covers the mechanics of CareCredit’s offerings, the challenges of deductible resets, the importance of educating patients on financial options, and actionable strategies for practices to foster trust and efficiency.

Navigating Deductible Resets and Financial Barriers

Deductible resets at the beginning of the year can create financial strain for both patients and healthcare practices. As Royster notes, “January 1st is when those typically will reset. What that simply means is that you will now have to pay whatever your deductible is for your particular plan, as well as any particular co-pays or any premiums that are part of your insurance plan.”

To address these challenges, Royster highlights that financing options like those offered by CareCredit can provide patients with greater payment flexibility. These options allow costs to be distributed over time, helping patients access necessary care without financial delays. Practices may also benefit from this approach by receiving payments more promptly, supporting their revenue cycle stability.

Educating Patients on Financial Tools

Patients often underestimate healthcare costs, believing they spend around $850 annually when the actual figure is closer to $2,200, according to CareCredit's research. Royster highlights the importance of bridging this knowledge gap. "Understanding something as simple as what is in network versus out of network…those things are grossly important because they can change how much you have to pay as an individual."

Streamlining the Payment Process

Royster says that the CareCredit platform offers a digital approach to healthcare financing designed to streamline processes for both practices and patients. As Royster explains, "It's really just more of a digital journey starting with the application process at your fingertips on your phone." The platform allows patients to prequalify in seconds using QR codes, without affecting their credit scores.

This process has the potential to ease administrative tasks for practice staff and offers patients immediate insight into their financing options, supporting quicker and more informed decisions about their care.

Enhancing the Patient Financial Experience

Delaying care due to financial concerns can contribute to poorer health outcomes and increased costs over time. Financing options, such as zero-interest plans within designated periods, can help make healthcare more accessible for patients by spreading out costs.

As Royster notes, "We want to make sure that they understand the various tools to be able to take the friction out of a patient having to decide to have care now or postpone." Practices are encouraged to discuss payment options early in the care process, presenting monthly payment plans rather than daunting total costs.

Supporting Practice Efficiency and Growth

For providers, offering financing options like CareCredit can help reduce administrative burdens and improve cash flow. By minimizing the need to manage in-house financing or outsource collections, practices can reallocate resources toward staffing, technology, and other operational needs.

"They will get their money within 2-3 business days,” Royster highlights. “So if you think about revenue and cash source for that provider, they're getting paid right away. It's a non-recourse program. We do the collection and they get to focus on the patient."

Measuring Success Through KPIs

Royster highlights the importance of patient satisfaction, stating, "Patient satisfaction, I think, is extremely important. With a lot of smaller entrepreneurial practices, a lot of their patients come via referral, and so having a good experience is critical for those practices."

By reducing administrative time and enhancing the patient experience, practices can create a more positive and efficient care environment.

Resources for Providers and Patients

Rising healthcare costs and financial barriers can often delay timely care. Financing options such as those offered by CareCredit provide resources for both providers and patients, including industry research, educational materials, and financial planning tools.

By offering financial solutions, medical practices may help reduce financial stress for patients, streamline operations, and support revenue stability. As healthcare expenses increase, such strategies can play a role in helping patients access necessary care without unnecessary delays.

Resources: 

• Visit www.carecredit.com to learn more about Care Credit's services and resources for healthcare providers and patients.

Sources Referenced:

• 2023 Employer Health Benefits Survey. Section 1: Cost of Health Insurance. Kaiser Family Foundation. October 18, 2023. 
• Americans’ Challenges with Health Care Costs. Kaiser Family Foundation. March 01, 2024.
• KFF Survey Shows Complexity, Red Tape, Denials, Confusion Rivals Affordability as a Problem for Insured Consumers, With Some Saying It Caused Them to Go Without or Delay Care. Kaiser Family Foundation. June 15, 2023. 
• Healthcare Journey Research Consumers and Providers. Synchrony. 2023. CareCredit is a Synchrony solution.
• 2022 CareCredit Lifetime of Healthcare Costs Research. CareCredit is a Synchrony solution.
• Financial Health Literacy and the Shared Decision-Making Process in Healthcare. International Journal of Environmental Research and Public Health. June 19, 2022. 

Disclosure: This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors with respect to any information presented. Synchrony and any of its affiliates, including CareCredit, (collectively, “Synchrony”) makes no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. All statements and opinions in the podcast are the sole opinions of the guest. Your receipt of this material constitutes your acceptance of these terms and conditions.