business 101

Healthcare Credit Cards

With increasing competitive pressure, patient retention is becoming more of a focus. Patients always have a choice, but they are less likely to choose a different provider if they walk out happy.

According to an August 2011 CareCredit Usage Study, over the past two years, more than 5,500 optometrists have added a healthcare credit card as a payment option.

Healthcare credit cards are relatively new to optical, but have been used in other healthcare fields for over 25 years. In fact, CareCredit, one of the first healthcare credit cards, has been used by more than 20 million patients for healthcare-related exams, treatment, and products.

So, when patients would prefer better quality lenses and frames or multiple pairs, practices can offer them the ability to pay monthly over an extended period through a financing company that offers a healthcare credit card.

PATIENT PROCESS

Patients complete a short credit application that is submitted online or by phone while the patient is in the practice. Decisions are typically provided immediately, so the card can be used for same-day purchases. There are a variety of monthly payment plans, including low interest plans with extended terms.

With most healthcare credit cards, there are no upfront or annual fees for patients, and interest rates are often lower that what they are charged on consumer credit cards.

Having a healthcare credit card also enables patients to get better quality products, which increases satisfaction with the practice. “We began offering the CareCredit card about six months ago,” explains Jerry Sude OD, chairman of OD Excellence. “We let all patients know it's available as soon as the exam is complete, so when they select frames and lenses, they are not limited by what insurance will pay.”

PRACTICE PREFERENCES

The economy has changed buying behavior. People are spending more cautiously and want to be smart with money. Practices report when they let patients know a healthcare credit card is available, including low interest payment options, it eases cost concerns, even if the patient chooses to pay another way.

With most healthcare credit cards, if the patient is slow to pay or defaults, there is no risk to the practice (subject to representations and warranties in the professional's agreement with the financing institution). That is because the financial relationship is between the financing company and the patient.

After the patient has paid, and the transaction is completed, the practice receives payment in about two business days, helping improve cash flow.

For more information, go to www.odexcellence.com. or www.carecredit.com/optometry.