Navigating the New Healthcare Economy: Third-Party Financing’s Role in Empowering Patients and Practices

The healthcare landscape is rapidly evolving, marked by rising costs, heightened patient expectations and increasing demand for health and wellness services. With the U.S. wellness market valued at over $450 billion and growing 5% annually, patients are more engaged in their health journeys than ever before.¹

However, this growing engagement is met with financial barriers.² Rising out-of-pocket costs and high deductibles can result in delayed or forgone care,³ which can negatively affect patient outcomes – and potentially impact practice revenue, which is particularly top of mind for ambulatory surgical centers (ASCs) reliant on patient volume. Research indicates nearly half of consumers have reported delaying or ignoring care due to cost, potentially leading to more medical problems in the future.⁴

Importantly, these challenges may indicate that traditional payment models are not meeting the needs of practices or patients. Third-party financing solutions can be valuable partners for healthcare providers, including ASCs, seeking to connect patients with payment options and help sustain practice vitality.

These key points were highlighted during a recent fireside chat at Becker’s annual The Business and Operations of ASCs Conference. The session, “Practice Smarter, Not Harder with Patient Financing Solutions Partners,” was led by Claude Royster, Senior Vice President and General Manager of Health and Wellness at Synchrony, and Cathy McDowell, President and CEO of KZA. Their discussion explored provider attitudes and patient perspectives on financing, as well as the impact of in-house and third-party financing on businesses.

The core message? Amidst escalating patient costs and the operational strains of traditional billing, modern third-party financing solutions are not merely a convenience, they’re a strategic advantage. They help empower ASCs to enhance patient access, reduce administrative burden and cultivate a patient-centric practice.

The Undeniable Need for Patient Financing Options

The critical role of patient payment options in healthcare decision-making cannot be overstated. As Synchrony’s Claude Royster noted during the fireside chat session: “The rising increase in healthcare costs [is] continuing to be a concern not only for patients, but also practices, and it affects the decisions that they make in terms of whether they're going to decide to get care or not.”

The financial burden on patients can be substantial. Synchrony’s Healthcare Journey Research: Consumers and Providers survey revealed that wellness services in hearing, vision or orthopedics, for example, could amount to thousands of dollars in out-of-pocket costs.³ Across specialties, the vast majority of providers view out-of-pocket costs as a major concern for their patients.³

Given these figures, proactive communication about payment options is crucial. As Cathy McDowell of KarenZupko and Associates stated: “Having those financial conversations early, making it very visible for your patients and having your staff educated on what those options are, is key.” This transparency builds trust and encourages patients to proceed with necessary treatments.

Research supports this importance of proactively communicating payment options: a Synchrony study found that 3 out of 4 patients have indicated they would pursue additional care if they had the means to pay.³ And, the majority reported their choice of provider is strongly affected by perceived availability of payment options offered.³

McDowell underscored this for ASCs, asking: “How many cases do not come to your ASC because they can't afford it? Look at those clients that you don't hear from and survey those clients.”

The key is not only that financing options are available, but also that they are accessible and easy to use. “It's no longer a back-office issue. It's a front office issue,” McDowell added, emphasizing the shift in operational priorities. In today’s digital world, patients expect the simplicity and comfort of digital integrations from their daily lives to extend to healthcare payments and solutions. Many patients surveyed attribute higher satisfaction to practices that integrate digital payment technologies, with a vast majority preferring a unified digital platform to manage all their healthcare bills.⁵

In-House vs. Third-Party: Why Traditional Approaches Fall Short

To understand why traditional approaches, particularly in-house financing, often miss the mark, it helps to review key features of the two primary financing models most practices utilize: in-house or third-party. “We need to care for the whole patient, and that includes finance,” said McDowell.

The challenges of offering in-house financing

While some practices offer in-house financing, the approach can increase administrative burden. This administrative burden can affect the staff workload. In CareCredit’s 2025 In House Payments report, nearly three-fourths of surveyed providers said in-house financing added time and work for their staff, and almost half acknowledged that it added stress.] These findings underscore how in-house financing’s administrative complexity can affect team workload and stress. As Royster observed, in-house financing means staff "have to go through the extra steps of actually putting that [service] on the balance sheet, and that becomes an administrative burden not only for that administrator, but also the practice, because now you have to collect upon that.”

The case for third-party financing solutions

Third-party financing services offer a compelling alternative. For example, the CareCredit credit card pays providers in two business days with no recourse* if the patient delays payment or defaults helping practices reduce accounts receivable and administrative teams’ responsibility for collecting payment, helping save staff time by streamlining financial processes.

Third-party solutions are perceived as effective in aiding billing – two-thirds of survey respondents agreed third-party financing helps their billing process.⁷⁶ This frees up staff to focus on patient care.

“Modern financing tools convert a higher percentage of care plans into completed procedures... financing platforms often result in about a 10 to 20% revenue growth without increasing patient volume and practice operations,” noted McDowell.

Beyond operational efficiency, third-party financing solutions can help address communication gaps regarding payment options. While 55% of patients want to know about payment options before their appointment, providers indicate that the majority of payment discussions do not happen until the patient's visit.⁵

“The research shows that patients are choosing where to pursue treatments based on how they pay for the care,” said Royster.

Third-party partners equip practices with resources and training to bridge this disconnect, helping patients receive clear financing information proactively. Digital tools and online educational materials further empower patients to confidently explore options.

The Value of CareCredit, a Synchrony Solution

Accepted at over 285,000 healthcare provider and retail locations, the CareCredit credit card enables patients to move forward with necessary and elective treatments across a wide range of specialties, helping patients pay for out-of-pocket healthcare costs not covered by insurance.

“We want to approve as many as we can so that they can get the care that they [want or] need now as opposed to postponing or delay,” said Royster.

• Fair Financing Principles. CareCredit offers consumers clarity and education before they even apply for its financing product. Available online, resources provide details on the CareCredit credit card and tools for financial planning—setting a standard of clarity that may be missing from other solutions with hidden transaction fees and conditions.
• Streamlined operations and support. CareCredit is seamlessly integrated in leading practice software platforms, so providers receive fast payments (within two business days) with no risk* if the patient delays payment or defaults, which helps minimize accounts receivable and administrative burden. Providers can access collaborative consultation tools, educational materials, and digital integration support including QR codes and custom links to streamline patients’ access to financing.
• Innovations to drive Credit access. If patients don’t qualify for CareCredit, Synchrony offers functionality to connect them to other lenders (at the provider’s discretion) to help them manage their wellness goals. This multi-source financing approach can unlock more approvals, giving more patients the ability to finance and access care.

Looking Ahead: Emerging Trends in Patient Financing

Through offering accessible financing and clear patient guidance, providers can help increase treatment acceptance and cultivate patient trust and retention. Investing in modern financing tools like CareCredit supports simplifying operations and improving the patient experience. Ultimately, incorporating third-party financing helps build a patient-centric care environment — and it’s up to providers to choose a partner that’s well-equipped to handle these challenges.

As financial and technology innovation accelerates, practice leaders may want to consider remaining vigilant about emerging trends, particularly within the ASC environment:

• Technology and digital integration. Demand for digital tools for application, payment and patient education will only grow.
• Transparency and education. There’s an ongoing need for providers and financing partners to educate patients on payment options. A clear understanding of how CareCredit financing works, as championed by CareCredit's Fair Financing Principles, helps present financing options.
• Adapting to economic shifts: With more than 1 in 4 Americans surveyed delaying recommended healthcare procedures due to cost,⁴ patient financing is a critical tool to help patients manage rising healthcare costs.

Ultimately, incorporating third-party financing helps build a patient-centric care environment – and it’s up to providers to choose a partner that’s well-equipped to handle these challenges.

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