How Optimizing Patient Payment Journeys Can Help Boost Patient Loyalty

Offering easy patient payment experiences can be essential for healthcare providers in a world where checking out at a store can happen with the wave of a smartphone. Health systems and providers that offer patient financing solutions may find that a positive payment experience can be a key component of establishing patient loyalty.

Modern patient payment solutions can go beyond the ability to make payments online. They might look like accessible support when billing questions arise, easy-to-understand medical bills and the option for flexible financing. Offering these patient payment services can help healthcare providers put their customers’ needs front and center.

The patient payment experience matters to providers’ business success. Recent research sheds light on the relationship between healthcare providers, patient financing solutions and patient satisfaction.¹

Understanding Patient Payment Journeys

Today’s healthcare financing landscape includes a mix of public programs, insurance cost-sharing and private payment tools to help patients manage out-of-pocket costs. It also includes:

FSAs and HSAs

Some patients have health insurance plans with high deductibles, which can result in more out-of-pocket costs for individuals to cover. Some rely on money saved in Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to cover medical bills with tax-advantaged funds.

An employer or individual can establish an HSA, but only employers can set up and hold an FSA for their employees.² In both cases, the accounts may hold pre-tax money contributed by the employer, individual or both that is reserved for out-of-pocket medical expenses. 

In-house payment plans from providers

Some healthcare providers allow patients to pay their bills in predetermined installments. Each provider sets its own policies regarding the cost and length of the financing, but some may offer interest-free or low-interest options.³

Charity assistance and sliding-scale programs

The Affordable Care Act (ACA) requires hospitals to have a Financial Assistance Policy (FAP) and an Emergency Medical Care policy.⁴ These policies explain any programs the healthcare providers have for reduced-cost care or financial assistance for low-income patients. Patients are typically required to apply to participate.⁴

Medical crowdfunding 

Some patients may use crowdfunding platforms like GoFundMe to solicit donations to pay for healthcare expenses. This is often seen as a last-resort financing option for those with unusually high medical debt, but its use has grown over time. A recent American Cancer Society analysis of GoFundMe campaigns found that between 2012-2022 more than 21% of fundraising events on the platform were for medical reasons. These medical fundraisers earned an average of $6,893 per campaign.⁵

Third-party credit products

Credit cards can be a convenient way to pay out-of-pocket medical expenses. Some financial services products are built for health and wellness expenses, like the CareCredit credit card. Patients can fill out an application in their provider’s office, get an instant decision and, if approved, use it immediately.

Other third-party healthcare financing products include “buy now, pay later” types of loans.⁶

Benefits of Optimizing Patient Financing

A beneficial patient financing experience can be one that is flexible enough for a wide variety of care wants and needs that patients can seamlessly fit into their healthcare experience. CareCredit, for example, offers patients the following benefits:

• Patients and clients can apply quickly at a provider’s office, receive an instant decision and use CareCredit right away if approved.
• CareCredit customer support is available 24/7 via phone, online and mobile app with representatives who go beyond answering questions — they also build relationships.
• Promotional financing options are available.*
• Patients can use a CareCredit credit card again and again at more than 285,000 locations for a wide range of health and wellness expenses.

Impact on Patient Loyalty in Healthcare

Building patient loyalty in healthcare isn’t only about the clinical side of things. Of course, achieving desired clinical outcomes and having positive interactions with physicians and clinical employees are important. However, ensuring a positive healthcare billing experience can also be a crucial factor. In Cedar’s 2024 Healthcare Financial Experience Study, 47% of respondents said their well-being or healing had been negatively impacted by difficulty paying a healthcare bill.¹ Additional findings included:¹

• 41% of respondents left a negative review of their provider due to a bad billing experience
• 58% said they’d revisited a provider due to a previous positive billing experience
• 38% of those surveyed reported switching healthcare providers due to a negative billing experience

What exactly are patients looking for in a positive billing experience?

According to the Cedar study, 71% of patients say they wished they were able to pay a guaranteed price before receiving care or at the point of service.¹

A McKinsey analysis found that many consumers are already seeking this information. Fifty-seven percent of their survey respondents who found pricing information factored cost into the decision of where to seek care, and 49% of Gen Z respondents looked up provider pricing ahead of time.⁷

Patients may also want an easy-to-understand healthcare bill with clear instructions on how to pay. The Cedar study found that 4 in 10 respondents said they would not pay a bill if they couldn’t understand the administrative experience.¹

Finally, many patients want the ability to prioritize their care without worrying about their finances. In the Cedar survey, 63% of respondents said that they would not be able to pay more than $750 out of pocket for unexpected costs, and 73% said they wanted payment plan options from healthcare providers.¹

Strategies to Optimize the Patient Payment Journey

Consider these six strategies to help improve patient retention through patient payment optimization:

1. Give patients as much information as possible about their estimated payment responsibility before the appointment

The McKinsey survey found 76% of respondents who found pricing information chose a lower- or medium-cost option when they know the cost of care.⁷ In some cases, the No Surprises Act requires providers to give a good-faith estimate.⁸

2. Consider implementing digital access options

Almost three-quarters (73%) of respondents in the Cedar study said they wished they could view real-time benefits information (such as their remaining deductible) in the same place as their provider bills.¹ Digital access solutions can provide this integrated view, helping improve transparency and convenience by allowing consumers to see and manage their healthcare financial information in one place.

3. Simplify billing with consolidated bills and improved payer-provider coordination

Receiving a hospital bill one day and a bill for their doctor’s services the next can make healthcare billing confusing and frustrating, especially if an apparent conflict between an insurer and the provider emerges on top of it. It’s easier for patients to understand the total cost of healthcare services when the charges are all in one place and third-party payers and providers are on the same page. In the Cedar study, 71% of respondents said they found reconciling a billing issue between their payer and provider stressful.¹

4. Offer financing options

Consider offering online patient payments and flexible financing options that help patients manage the cost of care with convenient monthly payments. With ever-rising healthcare costs, individuals may need patient payment solutions that empower them to pay gradually over time, so cost doesn’t become a barrier to getting the services they want or need.

5. Make billing statements as clear and easy to understand as possible

Patients may be more likely to pay promptly if their bills are easy to understand. Consider asking your back-office employees these questions to help improve your billing statements:

• What kinds of questions do patients ask most frequently?
• What confuses patients?

Then, you can reflect on your employees’ feedback to improve the clarity of your billing statements. Some examples of elements to include on billing statements could be:

• The physician’s name
• The name of the health system or provider
• The services rendered in plain language (e.g., A patient will likely understand “knee replacement” better than “knee arthroplasty.”)
• The date of service
• The amount the insurance paid
• The amount due from the patient
• Payment options

It may also be helpful to use a variety of fonts, colors and clear section headers to make important information stand out. Finally, if possible, send patient statements immediately upon receipt of the explanation of benefits from the insurance company. Patients may be more likely to pay when they receive a prompt bill because the services they received are still fresh in their minds.

6. Take measures to improve customer support for billing questions

You can provide an excellent level of support by leveraging healthcare technology that automates certain workflows. Alternatively, outsourcing billing support may help you offer extended hours for patients who work during the day and find it difficult to call and ask questions during regular business hours. Some health systems and providers are also using artificial intelligence (chatbots) to answer frequently asked questions, handle insurance questions and address payment-related inquiries. Patients can engage with chatbots 24/7, which could help improve patient satisfaction and enhance patient retention.

Prioritizing Patient Financing Can Send the Right Message

High-quality clinical services can be a crucial element in building patient loyalty and trust. Additionally, you may want to invest in creating a stellar patient payment experience — one that prioritizes patients’ financial wants and needs.

To help give patients a great experience, health systems and providers may want to consider prioritizing both the physical and financial health of their patients. Giving patients options to pay for the care they want or need while managing their budget can send a positive message that your patients and their payment solution needs matter.

Offer Flexible Patient Financing at Your Practice

If you are looking for a way to connect your patients or clients with flexible financing that empowers them to pay for the care they want and need, consider offering the CareCredit credit card as a financing solution. CareCredit allows cardholders to pay for out-of-pocket health and wellness expenses over time while helping enhance the payments process for your practice or business.

When you accept CareCredit, patients or clients can see if they prequalify with no impact to their credit score, and those who apply, if approved, can take advantage of special financing on qualifying purchases.* Additionally, you will be paid directly within two business days.

Learn more about the CareCredit credit card as a financing solution or start the provider enrollment process by filling out this form.

Author Bios

Natalie Burg is a writer, editor and editorial project manager with 20 years of experience. She uses her expertise from a range of industries, including economic development, business, sustainability and more, to create content that educates and engages readers.

Lisa A. Eramo is a freelance healthcare writer with more than a decade of experience writing for healthcare executives, managers, physicians and consumers. She contributes to various trade publications and also assists clients with healthcare content marketing efforts.

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