Patient lending isn’t just a financial tool — it’s a growth strategy

October 10, 2024

The healthcare landscape is always evolving, and with it, the financial challenges patients face are becoming more complicated. From rising medical costs to unexpected expenses, many people are finding it difficult to afford the care they need. And for healthcare providers, this often means lost revenue, delayed treatments, and missed growth opportunities. But what if you could turn these challenges into opportunities for growth — for both your practice and your patients?

That’s where patient lending comes in. It’s a powerful tool that’s transforming how patients access care, while also boosting the financial health of healthcare providers. In this blog, let’s dive into how patient lending works, why it’s beneficial for your practice, and how it can help you grow while making a real difference for your patients.

What is Patient Lending?

At its core, patient lending is a way to help patients finance their medical or dental costs. It’s a third-party loan that helps patients cover out-of-pocket expenses, treatments not covered by insurance, or even elective procedures. The beauty of it? It’s flexible — patients can repay the loan in manageable installments, and often at lower interest rates than traditional credit options.

For your practice, patient lending is a way to ensure that you’re paid for your services quickly, without patients having to fork out a large amount upfront. This makes it easier for patients to say "yes" to the care they need, and for your practice to get the revenue you deserve.

How Patient Lending Works

Here’s the process in a nutshell:

1. Patient Needs Care: A patient comes to you for treatment that may not be fully covered by insurance or is an elective procedure that insurance doesn’t cover at all.
2. Loan Application: The patient applies for financing through a lending partner that your practice works with.
3. Loan Approval: Once approved, the patient receives the funds needed for the treatment.
4. Treatment Delivered: You provide the treatment, and the patient repays the loan in affordable monthly installments (or on a deferred payment plan, depending on the lender).
5. You Get Paid: Your practice receives payment upfront or in a short time, reducing financial stress and uncertainty.

 Why Patient Lending is a Win-Win for Providers

1. More Revenue

Offering financing helps more patients afford the care they need. With patient lending, you can attract more patients who might otherwise delay or skip treatment because of cost concerns. More patients = more revenue for your practice.

2. Improved Cash Flow

The beauty of patient lending is that it allows you to get paid quickly. Instead of waiting for insurance claims to process or for patients to pay out of pocket, you get paid sooner, which helps keep your practice’s cash flow healthy.

3. Reduced Bad Debt

When patients have access to financing, they’re more likely to keep up with payments. By offering loans, you reduce the likelihood of payment defaults or missed appointments due to financial stress. It’s a win-win.

4. Happier Patients

When you offer affordable, flexible payment options, patients are more likely to follow through with treatment. They’re not only more likely to return for follow-ups, but they’re also more likely to recommend your practice to others. Happy patients = loyal patients.

5. Stand Out from the Competition

In today’s competitive market, offering financing can set you apart from other practices. It shows that you’re committed to making care accessible for everyone — regardless of their financial situation. It’s a great way to build trust and loyalty.

Benefits of Patient Lending for Patients

1. Immediate Access to Care

Patient lending helps remove financial barriers to care, meaning your patients can receive the treatment they need without waiting. They don’t have to worry about insurance claims or how they’ll pay upfront — they can start their care right away.

2. Affordable Payment Plans

Instead of paying a large sum upfront, patients can manage their healthcare costs with manageable, low-interest monthly payments. It makes medical expenses more predictable and easier to budget for.

3. Lower Interest Rates Than Traditional Credit

Compared to high-interest credit cards or personal loans, patient lending often comes with much lower rates, making it a more affordable option for many patients.

4. No Insurance Hassles

For treatments not covered by insurance, patient lending eliminates the need to wait for approvals or fight through the red tape. It lets patients proceed with their care without unnecessary delays.

How Patient Lending Can Help Your Practice Grow

The biggest advantage of patient lending? It helps fuel your growth. Here’s how:

• Attract More Patients: Financing makes it easier for patients to afford care, so you can increase your patient volume without compromising on revenue.
• Boost Patient Satisfaction: When patients feel supported financially, they’re more likely to follow through with treatment, improving both outcomes and satisfaction.
• Streamline Operations: With quicker payments and less focus on chasing unpaid bills, your practice can focus more on providing care and less on administrative headaches.
• Invest Back into Your Practice: Increased revenue and cash flow mean you can reinvest in your practice — whether it’s upgrading equipment, expanding services, or hiring more staff. Growth begets more growth.

How to Get Started with Patient Lending

Getting started with patient lending is simple. Here’s how you can implement it in your practice:

1. Secure The “Right” Financing Partner: Choose a reputable patient lending partner. Look for ones that offer flexible terms, low interest rates, and a simple application process for patients.
2. Make It Visible: Make sure your patients know about the financing options you offer. Include details on your website, in waiting areas, and during patient consultations.
3. Be Transparent: Patients need to fully understand the terms of the loan. Make sure the process is transparent and that they know exactly what they’re signing up for.
4. Train Your Staff: Equip your front-office staff with the knowledge to guide patients through the financing process. They should be comfortable explaining how the loans work and helping patients apply if necessary.
5. Monitor and Adjust: Keep track of how patient lending impacts your practice. Adjust your approach based on what’s working best for your patients and your bottom line.

Final Thoughts

Patient lending isn’t just a financial tool — it’s a growth strategy. It makes healthcare more accessible to your patients while ensuring that your practice remains financially healthy. With patient lending, you can increase revenue, enhance patient satisfaction, and ensure your practice continues to thrive in an increasingly competitive market.

So, if you’re looking for a way to grow your practice and make a real impact on your patients’ lives, it’s time to explore patient lending. It’s an investment in your practice’s future — and in the well-being of your patients.

Nancy Coy

Finance Rx Venture Studio

www.finrxstudio.com