The Role of Third-Party Financing in the Health and Wellness Payment Landscape

As the U.S. wellness market surpasses $450 billion, consumers are increasingly prioritizing holistic health. However, rising out-of-pocket costs remain a significant deterrent. While in-house payment plans are common, they often place an unsustainable administrative and financial strain on providers, who must essentially act as lenders for long-term debt.

The transition from in-house to third-party financing offers several critical advantages:

• Meeting Extended Demand: Nearly half of patients with healthcare debt require more than a year to pay it off. Third-party options provide the extended terms patients need without locking up provider capital.
• Closing the Communication Gap: 88% of patients want to know about payment options before their appointment, yet 77% of discussions currently happen during or after the visit.
• Reducing Administrative Burden: Providers face a "double whammy" of declining cash collections and rising expenses. Third-party solutions offer payment within two business days, removing the risk of default from the practice.
• Supporting Specialized Care: Out-of-pocket costs for services like fertility ($3,755) or plastic surgery ($4,804) are major barriers; 3 out of 4 patients would pursue more care if they had better ways to pay.

By integrating tools like the CareCredit credit card, providers can shift their focus back to patient outcomes while offering consumers the financial flexibility they prioritize when selecting a healthcare partner.