Advancing Patient Financial Preparedness for the Health of Your Patients and Business

High healthcare costs today might be driving a wedge between patients and their health, especially when out-of-pocket fees begin to feel more like a burden than a routine expense. Gaps in financial literacy can also have a ripple effect — potentially impacting patient care adherence and possibly lead to financial strain for practices. Having financial conversations in a transparent, timely way can make a huge impact on a patient’s care journey and when patients feel empowered to seek care, your practice can benefit too. So, let’s take a look at the impacts of financial preparedness and why it matters.

The Impact of Financial Options on Patient Care

Healthcare costs can be unpredictable, and patients’ ability to move forward with the care they want and need may be impacted by gaps in knowledge. Synchrony's 2022 Lifetime of Healthcare Costs (LOHC) research shows that some consumers said they ignored a recommended medical procedure due to cost.¹ Even when consumers save up for unexpected healthcare costs almost half say it's not enough,¹ causing additional stress that can impact their view of medical visits and care.²

When surveyed, patients estimated they spent an average of $850 annually on healthcare, but their actual expenses were 145% higher than what they reported.¹ As healthcare costs increase, consumers’ risk for delaying care increases too, which can cause worsened health outcomes³ and additional financial strain if their health deteriorates to require more intense care. Preventive care may seem non-urgent, but it plays a large role in clinicians’ ability to ensure the health and well-being of patients. Despite this, almost 50% of Gen Z, Millennials, and Gen Xers, reported they would delay non-urgent medical care if costs were less than $1,000.¹

As consumers delay care, practices may see a decrease in patient demand and visits. In an effort to offset any potential negative economic effects, some providers are changing their revenue cycle management (RCM) processes. An MGMA Stat poll revealed that while some providers have implemented more flexible payment options for their patients, many providers have focused on enhancing their organizations RCM efficiencies and overall fiscal health through stricter payment terms for patients.⁴ Those measures include reducing payment plan durations and requiring upfront payments.⁴ Despite these changes being aimed at boosting RCM efficiencies, the additional monetary burden placed on patients could compromise care by making it financially out of reach for some.⁴ Those results suggest a need for balance between navigating economic forces and maintaining patient-friendly payment options. Working with financing solutions could help providers protect their fiscal health without placing the financial pressure on their patients. Further, providing more flexible payment options for patients could ultimately help create higher quality patient experiences.

CareCredit’s How Cost Impacts the Patient and Provider Journey white paper highlighted that 61% of patients said they prefer to learn about payment options directly from their provider,⁵ but providers said they handle billing and payment conversations 5% of the time. The lack of provider and patient conversations surrounding payment options for healthcare costs, are not new but still present an obstacle. “Conversations about payment options for health costs is an important part of helping alleviate the financial stress that can come with healthcare visits,” said Claude Royster, Vice President and General Manager of Health and Wellness at Synchrony. “By working with a third-party financing solution like CareCredit, for example, practices can offer financing options to their patients earlier in the care journey.”

Leveraging Third-Party Solutions to Help Improve the Patient Experience

CareCredit is a health and wellness credit card that provides flexible financing for out-of-pocket costs, that helps fit consumers’ budget and lifestyle. CareCredit’s host of online educational resources can help empower patients with a deeper understanding of finances to navigate healthcare costs efficiently. Third-party solutions like CareCredit help patients manage out of pocket costs and enhances the payment process for providers.

CareCredit offers providers the support they need to champion conversations surrounding payment options with their patients through with resources like, on-site support, training, and educational tools. These resources give providers the tools to facilitate successful conversations with their patients that can lower fiscal stresses and worries can come from health care costs.

Learn more about CareCredit and see how your practice can benefit 

About Synchrony

Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to customers in their channel of choice. For more information, visit www.synchrony.com and Twitter: @Synchrony.

Disclaimer
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual 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 accepts no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.​

¹ 2022 CareCredit Lifetime of Healthcare Costs Research. 2022. CareCredit is a Synchrony solution

² Americans’ Challenges with Health Care Costs. 2024. KFF.

³ Low household income, financial literacy, or financial health: Which is the strongest risk factor and outcome of depressive symptomatology? Science Direct. 2024.

⁴ Transparency and flexible payment options keep care within reach. MGMA Stat. May 7, 2024.

⁵ Healthcare Journey Research Consumers and Providers, Synchrony, 2023. CareCredit is a Synchrony solution.