The Concept of Alchemy and Collecting Patient Responsibility
Alchemy is an ancient tradition centered around the transformation of matter. Alchemists were particularly interested in the idea of turning base metals, such as lead, into gold. It was based on a misunderstanding of basic chemistry and physics. Naturally, it was considered a science. Now it’s a philosophy that has been disproven.
Alchemy in Healthcare
There is a similar philosophy in the healthcare industry with Medical Financing. Healthcare providers often subscribe to the idea that somehow the patients that were never going to pay them for their services in the first place (lead) will somehow pay if offered the right payment plan (gold). We know that that philosophy isn’t accurate.
But that doesn’t mean patient payment plans are not profitable to the provider, in fact, it’s quite the opposite.
Introducing, pay-over-time
Pay-over-time options are not about how to eliminate payment default completely and turning your lead into gold. They are about capturing every patient that walks into your door and making the overall program profitable.
Oftentimes, providers put their patients on payment plans without an installment loan agreement. Or worse, they let the patients walk away out of fear of not getting paid.
Every practice has a capacity of patients they can treat. Most providers don’t treat patients at capacity because not every patient can afford a $3,500 procedure. What if patients could afford $98 a month and $20 of that was interest in your pocket?
What no one can do is take the people that were never going to pay and “alchemy” them into profit. That patient is going to default no matter what. At HFD, we offer interest programs that mitigate the risk of loss. A pay-over-time structure generates money in spite of the inevitable defaults, makes the paying patients pay for the defaulted accounts and every patient gets treated regardless of their credit score.
Learn more about the revolution in pay-over-time patient financing. Download our new ebook.