Healthcare Services Growth

Cost is the most common barrier to treatment acceptance. According to HFMA research on patient financial responsibility, a patient who needs a $3,000 procedure but doesn't have the cash on hand will delay care, seek alternatives, or simply go without. That's not just bad for your practice revenue—it's bad medicine.

Payment plans and financing options bridge this gap. They transform a single large expense into manageable monthly payments, making essential care accessible while ensuring your practice gets paid. But implementing financing requires careful planning to balance patient access with financial sustainability.

The Affordability Barrier

Research shows that cost concerns influence 40-60% of treatment decisions in healthcare. Patients who want treatment often can't afford the upfront cost, even when they have insurance. High deductibles, copays, and non-covered services create significant out-of-pocket expenses.

Without financing options, you're limiting your practice to patients who can pay in full. That excludes middle-income patients who need payment flexibility, even though they're perfectly capable of paying over time. This becomes especially critical when presenting treatment plan options to patients who need comprehensive care but face affordability concerns.

Financing doesn't just increase acceptance rates. It accelerates treatment starts, reduces case abandonment, and improves patient satisfaction. When you remove the affordability barrier, you serve more patients and generate more revenue.

Payment Plan Types

Different patients need different financing solutions. A comprehensive approach includes multiple options to match various financial situations and preferences.

In-house payment plans give you maximum control and flexibility. You extend credit directly to patients, collecting payments over an agreed timeframe. This works well for moderate amounts ($500-$5,000) and patients with established relationships with your practice.

Third-party financing partners like CareCredit or LendingClub handle the credit decision and collection, paying you upfront. You get immediate payment while patients make monthly payments to the financing company. This works better for larger amounts and new patients where you have limited credit information.

Healthcare credit cards function like regular credit cards but are designed for medical expenses. Patients apply once and can use their approved credit line for future services. These often feature promotional periods with deferred or reduced interest.

Discount programs aren't true financing, but they help affordability. Membership programs or prepayment discounts reduce the total cost in exchange for upfront or regular payments.

The right mix depends on your patient demographics, average procedure costs, and risk tolerance. Most successful practices offer both in-house and third-party options to cover all scenarios.

In-House Payment Plan Design

Creating your own payment plans requires balancing patient accessibility with financial protection for your practice.

Start with clear eligibility criteria. Not every patient qualifies for practice-extended credit. Consider requiring:

Minimum credit score (typically 600+)
Established patient relationship (6+ months)
Maximum outstanding balance limits
Clean payment history with your practice

For interest and fees, you have several approaches. Some practices charge no interest for short terms (3-6 months) and modest interest (6-12%) for longer terms. Others use administrative fees instead of interest to cover processing costs. Just make sure you comply with state lending regulations and Truth in Lending Act requirements from the FTC.

Term structures should match the procedure cost. Small balances ($500-$1,500) work on 3-6 month plans. Medium amounts ($1,500-$5,000) extend to 12-24 months. Larger costs may need longer terms but assess the collection risk carefully.

Require a minimum down payment—typically 20-30% of the total cost. This demonstrates commitment and reduces your exposure. For a $2,000 procedure, collect $400-$600 upfront and finance the balance.

Your case acceptance rate optimization improves when patients see clear, manageable payment options presented during treatment planning.

Collection protocols need documentation from day one. Use written agreements that specify:

Total amount financed
Payment schedule and amounts
Interest rate or fees
Late payment penalties
Default consequences
Acceleration clauses

Automatic payment methods (credit card on file or ACH) reduce missed payments. Make enrollment in autopay a condition of plan approval.

Third-Party Financing Integration

Third-party financing shifts credit risk and collection burden to specialized companies, but it requires careful integration.

Partner selection impacts patient approval rates and your revenue. Compare:

Approval rates (percentage of applications approved)
Credit line amounts
Interest rates and promotional terms
Merchant fees (what you pay per transaction)
Application process simplicity
Customer service quality

CareCredit dominates healthcare financing with broad acceptance and patient familiarity. But evaluate alternatives like LendingClub Patient Solutions, Sunbit, or regional healthcare lenders. Many practices contract with 2-3 partners to maximize approval options.

Staff training determines utilization rates. Your team needs to:

Know when to suggest financing
Explain how each program works
Guide application completion
Present approved amounts confidently
Handle declined applications gracefully

Create financing champions among your staff—team members who understand the value and actively promote options to appropriate patients. This aligns with your broader staff training development initiatives to enhance patient service.

The application process should be seamless. Most financing companies offer:

Online applications (patient can complete at home)
In-office tablet applications
Paper applications (backup option)
Quick decision times (often 30-60 seconds)

Integrate application links into your financial policy communication materials so patients can explore options before their appointment.

Denial handling requires sensitivity and alternatives. When a patient doesn't qualify for third-party financing:

Offer in-house payment plans if eligible
Suggest a co-applicant (spouse, family member)
Recommend smaller initial procedures with lower costs
Provide discount for cash payment options

Never make patients feel judged for credit issues. Focus on finding solutions that work within their financial situation.

Presentation and Discussion

How and when you introduce financing dramatically impacts acceptance rates.

Timing matters. Don't wait until the patient balks at cost. Introduce payment options proactively during treatment planning:

"We offer several payment options that make this comfortable for most patients"
"Many patients choose to spread this over 6-12 months rather than paying all at once"
"Would it be helpful to see what monthly payment this would be?"

Present financing as a standard option, not a last resort for people with money problems. Normalize it by explaining that most patients use some form of payment plan.

How to present financing affects uptake. Use monthly payment language instead of total cost:

Instead of: "This procedure is $4,500"
Say: "This procedure is $4,500, which most patients pay with either $1,500 down and $300/month for 12 months, or they use our financing partner for as low as $145/month"

Always give the monthly payment amount. It's psychologically easier to accept $200/month than $4,000 total.

Overcoming stigma around financing requires repositioning. Emphasize that:

Smart financial management often means spreading costs
Maintaining savings and credit availability is prudent
Payment plans let you get treatment now rather than delaying care
Many high-income professionals use financing strategically

For consultation-to-procedure conversion in aesthetic and elective services, financing becomes especially critical since insurance doesn't cover costs.

Application assistance shows you're invested in the patient's success. Offer to:

Help complete applications
Answer questions about terms
Explain approval amounts and options
Enroll in automatic payments

Make the process easy and supported, not an obstacle course.

Risk Management

Extending credit or accepting financed payments introduces financial risk that requires active management.

Credit checks for in-house plans protect your practice. Use a medical credit bureau service to:

Verify identity
Check credit history
Review payment patterns at other healthcare providers
Assess risk level

Set minimum thresholds and don't extend credit to high-risk patients, no matter how much they need treatment. It's better to lose a case than to have an uncollectible balance.

Payment monitoring prevents small problems from becoming large ones. Track:

Missed payment alerts
Payment pattern changes
Approaching credit limits
Aging balances

Intervene early when issues arise. A friendly contact after the first missed payment often resolves problems before they escalate.

Default procedures need to be clear and consistent. When patients stop paying:

First missed payment: Automated reminder
Second missed payment: Personal call from financial coordinator
Third missed payment: Written notice of account status
90 days past due: Consider collection agency or legal action

Your collections process should integrate payment plan accounts with regular billing to ensure nothing falls through cracks.

Write-off policies acknowledge that some accounts won't collect. Establish criteria for writing off uncollectible balances:

Minimum collection effort attempted
Cost-benefit analysis of further action
Legal and ethical considerations
Impact on patient relationship

Budget for expected write-offs as a cost of offering financing. If you have a 3-5% default rate on financed amounts, that's often acceptable given the incremental revenue from increased acceptance.

Measuring Impact

Track key metrics to evaluate your financing program's effectiveness.

Financing utilization shows how many patients use available options:

Percentage of cases using payment plans
Average financed amount per case
Distribution across plan types
Approval rates by financing partner

Low utilization suggests staff aren't presenting options effectively or terms aren't attractive enough.

Acceptance rate impact measures the core benefit:

Overall case acceptance rate before and after offering financing
Acceptance rates by treatment cost bracket
Acceptance rates when financing is discussed vs. not discussed
Case size changes (are patients accepting more comprehensive treatment?)

Successful financing programs typically improve acceptance rates by 15-35% for cases over $2,000.

Collection rates ensure you're getting paid:

Payment plan completion rate
Average time to full collection
Default/write-off percentage
Collection costs as percentage of financed amounts

If collection rates fall below 90-95%, tighten eligibility criteria or improve collection processes.

Compare performance across different plan types and partners. If one financing company has significantly higher approval rates but also higher merchant fees, calculate whether the incremental approvals justify the costs. This analysis should be part of your regular patient acquisition economics review to understand the true cost and value of converting patients.

For elective procedure marketing especially, financing capability becomes a competitive differentiator. Patients comparison shopping often choose practices that offer the most flexible payment options.

Implementation Roadmap

Rolling out a comprehensive financing program takes planning.

Month 1: Assessment and Planning

Analyze current patient payment patterns
Research financing partners
Develop in-house plan structure
Review state lending regulations

Month 2: Partner Selection and Setup

Select 2-3 financing partners
Complete merchant applications
Develop written policies and forms
Create staff training materials

Month 3: Training and Soft Launch

Train all patient-facing staff
Role-play presentation scenarios
Soft launch with select cases
Gather feedback and refine

Month 4: Full Launch

Announce to all patients
Add to website and marketing materials
Monitor utilization and outcomes
Optimize based on results

Ongoing: Monitoring and Improvement

Monthly review of key metrics
Quarterly staff refresher training
Annual partner performance review
Continuous refinement of presentation approaches

Common Mistakes to Avoid

Don't wait until the patient says they can't afford treatment to mention financing. Present it proactively as a standard option.

Don't offer plans without proper credit screening. You're not doing patients a favor if they default and damage both your relationship and your practice finances.

Don't make financing complicated. Simple terms, clear explanations, and easy application processes generate better results than complex structures with the absolute lowest rates.

Don't rely solely on staff remembering to mention financing. Build it into treatment presentation templates, cost estimate forms, and consultation workflows.

Don't forget to celebrate success. Track team members who effectively use financing to help patients accept needed care and recognize their contribution to both patient care and practice growth.

Building Accessibility and Sustainability

Payment plans and financing options make healthcare accessible to patients who need payment flexibility. When implemented thoughtfully, they increase treatment acceptance, accelerate case starts, and improve patient satisfaction while protecting your practice financially.

The key is offering multiple options, presenting them professionally, managing credit risk appropriately, and tracking results to continuously improve. Financing shouldn't be an afterthought or emergency option—it should be a core part of how you make quality healthcare available to all patients who need it.

Done right, everyone wins. Patients get the care they need on terms they can manage. Your practice serves more patients and generates more revenue. And you build deeper relationships with patients who appreciate your flexibility and understanding of their financial realities.

Tara Minh

Operation Enthusiast