Is Patient Financing Right for Your Practice?

You probably became a doctor because you wanted to help people in need. Since there are so many people in need, you may be finding that they are not paying for the medical services that you provided them. Technically, you have been giving them credit for those services and have not been charging them any interest on the amounts owed. To keep your business afloat, it may be time for you to look into patient financing.

Most people have some sort of health insurance, and they are required to pay their plan’s deductible before the insurance company will pay any money to the physician. If the patient doesn’t pay any part of their medical bill, your practice suffers. One way for doctors to ensure that they will receive payment for services rendered is through the use of medical credit cards.

This is where people apply for a credit card that is used specifically for paying medical bills. For the last 20 years, the credit card industry has issued cards to people so that they can pay for high-ticket medical services like eye surgery, orthodontic care, plastic surgery, and elective care procedures. Patient financing may be what your practice needs to keep a lid on its unpaid bills.

The downside of medical credit cards is that since so many people are having financial difficulties, they are not able to get the card because of their low FICO scores. These low scores are the result of divorce, unemployment, and other life-altering developments. For those that did qualify for the card, some are not able to pay the balances owed because they now share the same financial problems of not having a job or going through marriage dissolution.

Patient financing is an alternative to the problems that medical credit cards can create. Medical practices can set up payment plans for their patients with the credit cards that they already have. They would have a billing system that would involve having recurring payment plans for their patients. Nowadays, monthly deductions can be made from the patient’s debit or credit card instead of sending out paper bills.

In today’s world of rising health insurance costs, people are having a hard time paying their medical bills. This can translate into doctors not being able to keep their businesses going because of the lack of funds. Setting up a patient financing system can help keep your practice thriving for years to come. This way, your patients get good medical service and you get paid for the work you do. Everybody wins.

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