With the average medical expense for an emergency room totaling $2,000, it is no wonder a majority of the American population cannot afford proper medical care. This is according to studies by the Board of Governors of the Federal Reserve System that also indicate that 47% of Americans do not have enough finances to cater for treatment costs of $400 or more. With this in mind, patient financing remains the only solution to helping practices focus more on patients and less on funding. Below, we discuss what medical financing entails.
Defining Healthcare Financing
Medical financing refers to funding that uses a patient’s credit to pay for their medical costs. If patients cannot pay for urgent medical procedures on time, this financing helps offset underlying expenses. It also allows medical facilities to finance their overhead costs while ensuring that bill collections are managed. The result is improved patient engagement, allowing healthcare providers to focus more on patient needs.
How Does Healthcare Financing Work?
Medical financing utilizes multiple funding options, with most practices using solutions that work well with their patients’ needs while providing effective interaction with financing institutions. Some of the most common options include:
Medical Credit Cards by Large Banks
This option provides patients with credit lines that use personal credit scores to determine the interest rate. Since medical credit cards do not come with an origination fee, most patients will often prefer to use them rather than other medical loans.
Payment Solutions Platforms
These are technology platforms that offer other patient payment solutions and other financial services. Patients can make their payments over time without having to utilize third-party financing.
Personal Loan Services
Various private companies also advance low-interest loans to patients, often based on a patient’s existing debt and credit score. If your patients prefer this option, you will likely have to juggle between various companies and research the different terms for their loans and their payment plans.
Dedicated Medical Finance Institutions
Companies that offer dedicated medical financing are another alternative that cuts back on unnecessary out-of-pocket expenses. These will often shield patients from penalties and interest rate hikes if they decide to pay off a loan too quickly.
Whichever solution you prefer, getting medical financing from qualified lenders will be crucial in helping you meet your patients’ needs effectively. Call Commercial One Group today for affordable solutions tailored to increase your facility revenues.