Financial

Patient financing also can be used as a marketing tool

I speak with health care practices on a regular basis. During these conversations, physicians usually ask a range of questions to help determine whether they should incorporate third-party patient financing into their practice.

Here are some of the most frequently discussed topics to give a better understanding of third-party patient financing and how it can benefit practices and patients.

Uncollected accounts

When practices take on the responsibility of billing patients in-house, they incur the costs and risks associated with it as well, including late payments and uncollected accounts. Although nearly every health care provider has some degree of accounts receivable, in-house billing can have a significant impact on a practice’s bottom line.

When a health care provider considers the investment of time and resources to process payments, track down late payments and make collection calls, the cost can be considerable, not to mention having the potential to negatively affect referrals and public relations. When attempts to receive payment are unsuccessful, the resulting uncollected accounts can become a bad debt write-off that can further impact the practice financially. Improvement of cash flow and elimination of billing and collection of delinquent accounts are benefits that help health care practices stay healthy, too.

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