Should You Offer Patients Financing?

ASPS just announced an affiliation with CareCredit/GE as a member benefit to facilitate patient financing. It's worth your consideration.

Some plastic surgeons say that financing is an important service to offer patients. They point out that credit cards put an enormous interest burden on patients and for that reason are not a viable alternative. In fact, several of the practices we spoke with offer financing arrangements with more than one company. Other practices found that having an arrangement with the local bank has served everyone’s interests well. Other doctors and managers told us, ”If they can't afford plastic surgery they should wait until they can.” Still, the last and final group hasn't really formulated an opinion about financing one way or the other - but they need to!

It's also true that many practices can't make a good decision about offering financing or assessing their past experience because they lack the information and real data to do so.

Here is a feature of the ASPS-endorsed CareCredit program that is a real plus: they offer online credit applications with loan qualification answers in less than ten seconds, directly from your website! This is a tremendous benefit to those of you offering ”complimentary” consultations. Think about it.

How many times has the surgeon spent a good half hour going over the procedure and the moment the fee is quoted the patient says, ”Oh, I didn't think it would be that much, I can't afford it!” A savvy patient coordinator enquires ”How much did you have budgeted?” and learns that the patient planned to spend only half the amount of the actual total fee! All the time and effort you've invested is wasted if your patient coordinator has nothing else to offer. The financing option could save the day and the case! Remember, the CareCredit financing program allows patients to determine their credit budgets before they come in to see you—right from your website! Again, the savvy patient coordinator will explain to the patient that she can make a deposit equal to her planned expenditure and finance the balance. NOTE: Apply the cash payment to the operating room if you own it - remember that's where the big fixed expenses are.

In another practice, the patient coordinator is the one who offers the financing option only after the patient has been ”wowed” (in her words) by the office team, the surgeon and her consultation. ”I prefer to have financing as an ace I can use to facilitate scheduling for those patients who really need it.”

To make a solid decision about the financing issue, there are questions you should ask now:

1. How many patients asked about financing during the first quarter?

If you don't know, start tracking. Make sure that there isn't a real consumer demand by patients you've seen that you've missed or ignored. Maybe that's why the practice down the street seems to be so busy – by offering financing they are helping to make plastic surgery affordable to patients.

2. What procedures receive the highest number of financing inquiries?

In an informal survey of KZA clients and friends – hands down – breast augs and liposculpture were the procedures most likely to be financed. Important? Yes, because you may decide to tailor your advertising outreach and direct your financing message to the target market – those who need and want it.

3. Of the patients who applied for credit, how many were accepted?

Some companies offer extremely low processing rates to the doctor because they have extremely strict criteria and almost no one is approved. This defeats the purpose of offering financing right? You want to know what the acceptance rate is for the companies you are using now. Maybe it's time to edit the list – or to try CareCredit/GE and see if they do better.

4. Is the person quoting fees and making financial arrangements skilled enough to handle this conversation?

In some cases, the staff will need training to diplomatically and skillfully suggest financing, and deal with the math on the quotation forms. Does your financing company offer staff training on presenting financing and overcoming the price objection?

5. Do you have an adjustment category for the financing fees?

The CareCredit/GE rate is 5% of the amount financed. Good business practices demand that you track the fees. Talk with your accounting professional to make sure you are or will be doing this right. You'll want to know for each company what participation has cost you.