Hello, everyone. This is Erica Spicer Mason with
Becker's Healthcare. Thank you so much for tuning
into the Becker's Healthcare podcast series.
Today, we'll be talking about key considerations
in patient financial experiences.
And joining us for this discussion is Matilda
Pajaitis,
the vice president and health care industry leader
at CareCredit.
Matilda, welcome to the podcast. Thank you so
much for joining us today.
Thank you, Erica, for inviting me.
We're thrilled to have you here. And before
we get into our conversation, I wanted to
see if you'd like to share a little
bit more about yourself, your role, your organization,
whatever feels important to you.
Sure. Happy to. So my name is Matilda
Pajades,
and I'm serving as a vice president of
health care at Synchrony.
I've been with Synchrony for over 5 years
now and support health care industry work with
our CareCredit Health and Wellness
credit card.
CareCredit, as an organization,
provides a flexible solution to pay for health
care expenses over time in ways that help
feed our customers' budgets so they don't have
to stress about out of pocket payments at
their provider's office.
On the patient side, our goal by offering
a range of financing options through the CareCredit
card is to help patients manage health care
costs so they can get the care that
they need and want.
As we all know, the increasing out of
pocket costs, high deductible health care plans, and
reducing insurance coverage are significant challenges
that can hinder people from obtaining the care
they need or desire.
On the provider side, CareCredit is a solution
to help minimize accounts receivable
and administrative burden
while improving the patient payment process.
For enrolled providers, CareCredit can be used to
finance many of the services they offer. It
provides patients flexible financing options to pay for
the care they need or want for themselves,
their families, and their pets.
Wonderful. Thanks so much for the overview, Matilda.
I really appreciate it. And to get our
discussion started, I'm I'm hoping you can give
us a little bit of context on what
you're seeing kind of at an industry level
when it comes to the patient experience and
specifically,
how the patient and provider dynamic and even
patient behavior have really changed over time. What
are you seeing on your end?
Sure. So I think that because healthcare in
the US has gotten so expensive,
many patients may be struggling,
to view healthcare as a tool to improve
their well-being,
and more so just as another expense or
cost that they have to manage.
Synchrony
That
research is titled That research is titled 2023
Healthcare Journey Research Consumer and Providers.
And it revealed a lot of interesting perspectives
on care.
We saw that a lot of consumer mindset
varied based on their approach to healthcare,
desire for treatment and perceptions of affordability,
but, ultimately,
more than half of them said they would
delay or push off medical treatments due to
costs.
Actually, 76%
of respondents
said that they would pursue additional medical services
if they had ways to pay for them.
Likewise,
with an increase in the consumerization
of health care,
many people are more willing to defer care
these days, particularly since consumers don't don't believe
the health care system supports their need.
According to Mackenzie's
driving growth through consumer centricity in healthcare report.
If patients ignore recommended care, we could potentially
see worsening health
outcomes. Another survey that we conducted in 2022,
the life called the lifetime of healthcare cost
research,
showed us that of people who had ignored
or delayed the recommended procedure
due to cost,
nearly half face additional medical issues as as
a result.
So I believe there are many complex factors
impacting the patient provider relationship,
but clear
that cost as a barrier to care is
an important one to consider.
Absolutely. And I really appreciate you sharing some
of CareCredits research, Mathilda, and some other
studies. It's interesting to hear about this trend
of deferring care because of cost, which, of
course, is completely understandable,
but it almost goes against directly what health
care organizations are aiming for, which is proactive
care and preventative care,
to improve outcomes and costs. So a very
complicated situation. So Yes. Indeed.
Yes.
So from your perspective, what role does financing,
whether it's in house or through a third
party like CareCredit,
what role does that play in how patients
seek care and view their care teams?
Sure. So in 2022,
we conducted our lifetime of health care cost
survey with nearly 3200
people.
The survey results found that insured Americans spend
an average of $5,200
on individual annual healthcare costs, including insurance premiums,
out of pocket expenses, and coinsurance,
over deductibles.
Extrapolated during an adult lifetime, this could mean
an estimated
$320,000 in individual healthcare costs between the ages
of 1879.
Now this price tag doesn't even account for
a chronic illness, mental health services,
or elective procedures.
Too often unexpected medical care can come with
high copays
for things like scans, medical tests, specialists, lab
work, accidents, and medical emergencies.
Even if individuals save for these costs, most
survey respondents dramatically underestimate their out of pocket
health care expenses.
And I'll share with you all some some
findings that are really eye opening.
Findings from the study also suggest that high
costs of health care are causing people to
consider delaying or foregoing recommended care and treatment
and forcing them to choose between financial health
and physical or mental health well-being.
So some stunning numbers here. 50% of Gen
z, Millennials, and Gen Xers on average said
that they would consider postponing non urgent medical
care if the cost is between $502,000.
32% of boomers said that they would consider
postponing non urgent medical care if the cost
is 500 to a $1,000.
25%
of Gen Z, Millennials, and Gen Xers
on average said that they would consider delaying
non urgent medical care that costs less than
$500
And 65%
of Millennials and 60% of Gen Xers said
that they would not financially prepare for their
most costly out of pocket health care expenses.
So these are, like, tremendous low numbers when
we think about the cost of health care
and and how people are prepared
to pay for health care.
Health insurance can be a good first line
of defense, but here are a number of
ways to plan for unexpected health care costs.
Folks usually have, from from corporate world, health
savings accounts.
That that's available,
to those with a qualifying high deductible health
plan as a way to save pretax dollars
specifically for health related expenses.
Another tool is flexible spending accounts.
If you have health insurance through your work,
or, you know, an FSA or a flexible
spending account
is a pretax saving account that can be
used for health related expenses like co pays,
deductibles,
and prescriptions.
Savings
accounts could be another one. Even a basic
savings account through your bank can help you
set aside money for unexpected medical costs not
covered by our insurance.
Another tool is CareCredit credit card.
CareCredit is different from a general purpose credit
card. Millions of people have CareCredit to help
pay for out of pocket expenses
not covered by medical insurance.
Having said that,
patients are looking for providers that offer multiple
payment options and clearly communicate the costs
associated to the treatment they are seeking.
Patients feel valued when healthcare professionals have open,
honest conversations with their patients and are transparent
about pricing and any potential
additional
fees. CareCredit can help providers by offering educational
resources to patients so they can feel empowered
to make an informed decision about their care.
Yeah. Again, really appreciate the research insights, Matilda.
It's
pretty alarming to hear some of those high
percentages of folks who feel like they can
only pay a relatively small amount of out
of pocket costs or none at all. So
I appreciate you highlighting that for our audience.
And I I know the last point you
just ended on was really how patients are
looking for options when it comes to paying
for their care. So
considering
that and what CareCredit does, you know, from
an organizational standpoint, what strategies does CareCredit have
in place that are aimed at helping to
bring patients
into practices or help to improve retention rates?
Yes. So a third party financial financial provider
can implement several strategies to help healthcare providers
attract and retain patients.
These strategies can help enhance the overall patient
experience,
reduce financial stress and improve satisfaction,
leading to better retention rates. Here are some
key strategies to consider.
One is financing options.
Some third party providers offer promotional financing or
installment options that make it easier for patients
to manage their healthcare expenses.
Another one is transparent pricing.
Provide clear and detailed information about the cost
of various treatments and services.
This can help patients make informed decisions and
reduce anxiety about unexpected expenses.
Financial counseling services is another one.
Providers should offer financial counseling to help patients
understand their billing statements, insurance benefits, and payment
options.
This can be done through dedicated financial counselors
or through digital platforms.
Another one is streamlined financing approvals.
Implement a quick and easy approval process for
financing options,
reducing the time and the effort
required for patients to secure funding for their
treatments.
Discounts and incentives can also play a role.
So providers provide discounts
or incentives for early payments, bundled services, or
for patients who opt into certain payment plans.
This can make the financial aspect of health
care more manageable.
Develop and integrate digital payment solutions that allow
patients
to pay bills online, set up automatic payments,
and receive digital invoices.
This convenience can improve the patient experience.
Another one would be patient education programs.
Educate patients about the financial aspects of their
care through workshops,
webinars, and informational brochures.
Knowledgeable patients are more likely to feel in
control and satisfied with their care.
Collaboration with providers. Work closely with healthcare providers
to ensure that the financial solutions offered
align with the needs of their patients.
This can involve regular meetings, discuss patient feedback,
and adjust offerings accordingly.
I think that by implementing these strategies,
3rd party financial providers can play a significant
role in helping to improve
the overall patient experience,
reducing financial stress, and fostering loyalty and retention
among patients.
Thanks, Matilda.
Definitely sounds like there's no shortage of options
in how providers
can really help to improve the patient financial
experience in general.
And I wanted to also get a few
more details from you or your thoughts on
what that typical patient experience is right now
when it comes to payment options.
And how might accepting
a payment solution like the CareCredit credit card
really help out here?
Yeah. Sure. So with the rising cost of
health care, many Americans are finding it increasingly
difficult to pay for the care they need.
So according to Synchrony's 2023
Healthcare Journey Research, Consumers, and Providers,
which surveyed over 23100 consumers,
more than half, 52% actually,
said that they struggle to cover out of
pocket medical expenses.
Moreover,
76%
of consumers indicated they would pursue additional
medical services
if they had payment options available.
This statistic underscores a critical gap in the
current health care payment landscape.
Patients are willing to invest in their health,
but financial barriers prevent them
from doing so.
This unmet needs,
highlights the importance of offering payment solutions to
help improve patient satisfaction
and health outcomes.
3rd party providers like Synchrony
offer promotional financing or installment options that can
make it easier for patients to manage healthcare
expenses.
Accepting a payment solution like the CareCredit credit
card
can significantly enhance the patient experience
by providing them with the flexibility to pay
for their health care in a way that
suits their financial situation.
CareCredit allows patients to pay for deductibles, treatments,
and procedures not fully covered by insurance,
as well as other health and wellness services
for themselves and their pets.
So this broad utility means patients can use
CareCredit across a wide range of medical and
wellness providers at locations in the CareCredit network,
enhancing their ability to manage health care costs
effectively.
Furthermore, by integrating CareCredit into their payment options,
health care providers can
improve their revenue cycle management and reduce the
administrative burden associated with in house payment plans
and accounts receivable.
This not only helps accelerate cash flow, but
also enables providers to focus more on the
patient.
So, overall, the adoption of a payment solution
like CareCredit can lead to higher patient satisfaction
by addressing the financial concerns that often accompany
medical
treatments. Patients may be more likely to follow
through with recommended procedures and services when they
have confidence in their ability to pay for
them.
This can lead to better health outcomes and
a more positive overall experience with their health
care providers.
Additionally,
providers benefit from accelerated cash flow and reduced
financial administration.
Yeah. Thanks, Mathilde. And I'm curious. You know,
we're talking about
patients feeling a bit more empowered with the
ability to to pay for their health care.
I imagine that would also
kind of affect their relationship
to health care in general and services that
are available to them. So
when we think about rebuilding that relationship between
patients and their and their providers, where do
you think the industry should really start
to see those improvements?
Yes. I think from a provider perspective, the
key thing is focusing on that consumerization
aspect.
Costs drive a lot of decisions we make
in everyday life, and same is now true
for our health care.
Working on transparency where possible to provide clear
and detailed information about the cost of various
treatments and services is a good start.
Another thing to consider is figuring out how
to work with patients who may not know
all the ins and outs of their health
care expenses.
Education for people who don't understand their insurance
coverage or what financial assistant programs or tools
are available to them is just as important
as being transparent about their costs.
So introducing more options for them to pursue
care should be a consideration.
So according to our Health Care Journey research,
76%
of consumers indicated they will pursue additional medical
services
if they had ways to pay for those
additional
services available.
So, this statistic underscores the critical gap in
the current health care payment landscape.
Patients are willing to invest in her in
their health, but financial barriers may prevent them
from doing so.
This unmet need highlights the importance of offering
payment solutions to help improve
patient satisfaction and health outcomes.
This is where CareCredit comes into play to
help your patients
get the care they want or they need.
CareCredit offer pay offers patients a way to
pay for a wide range range of health
and wellness wants and needs in ways that
help fit into their budget,
allowing them to pay for out of pocket
expenses over time.
This flexibility may help reduce stress around health
care costs and could improve patient satisfaction.
Great. Thank you, Matilda, again, for for all
of these insights and the many ways that
a patient's experience can improve,
just in feeling, you know, financially secure and
financially sound in their decisions for their care.
So,
before we wrap up our time together, I
wanted to see if you had any quick
final thoughts for our audience, maybe anything we
didn't cover.
Absolutely. I'd like to emphasize a few additional
points to provide a comprehensive
view of the benefits and and impact of
third party solutions
like the CareCredit credit card.
One of them is strengthening trust and communication.
By offering payment options, providers can help increase
patient satisfaction.
When patients feel that their financial concerns are
understood and addressed,
they may be more likely to engage openly
with their healthcare providers.
When patients have a way to pay for
recommended care, it can result in more positive
health outcomes.
Another thing that I would like our audience
to know is helping enhance provider patient loyalty.
When patients are able to manage cost and
have a positive health care experience,
they may be more likely to return to
the same provider for future care.
This loyalty is beneficial for both patients
who receive consistent care and providers who benefit
from a stable patient base.
CareCredit helps build this loyalty by offering a
payment solution.
And last but not least,
help prepare for the health care you want
or need. With rising health care costs, patients
need options to help manage healthcare costs.
CareCredit helps provide patients with a financial solution
to pay for want or need across their
journey.
Fantastic. Matilda, thank you again for those final
takeaways and just a great discussion today in
general. Really appreciate the time that you spent
with Becker's today.
Absolutely. Thank you, Erica. I appreciate that.
And we'd also like to thank CareCredit for
sponsoring today's episode.
Listeners, you can tune into more podcast from
Becker's Healthcare by visiting our podcast page at
beckershospitalreview.com.