Solving the Payment Puzzle: How Third-Party Financing Can Help Address Cost Concerns

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4/13/2025

Surveyed healthcare practices and patients share a financial dilemma: patients underestimate their out-of-pocket costs,¹ while practices struggle to meet providers’ expectations, with in-house payment plans, as providers acknowledge costs as a barrier to care for patients.²

In response, providers can adopt third-party financing solutions to help simplify revenue cycles and support managing administrative tasks.³ The new CareCredit report, “The Role of Third-Party Financing in the Health and Wellness Payment Landscape,” offers practice leaders an honest look at how to address this payment puzzle, highlighting key findings from Synchrony’s Healthcare Journey Research study and CareCredit’s Lifetime of Healthcare Costs report.

Here's a preview of the full report; complete the form on this page for immediate access to your complimentary download.

The impact of healthcare costs

Insurance covers a portion of care, but there’s frequently a sizable gap between what insurance pays and what patients owe.⁴ As a result:

One out of every two consumers delay care due to cost, per Synchrony’s 2023 research.²
Even those with insurance said they spend $1,310 per year in out-of-pocket costs beyond premiums.¹

As consumers struggle to prioritize care due to costs, three out of four consumers reported they would pursue additional medical services if they had the ways to pay for them.²

Why in-house payment plans may fall short

Some practices try to ease cost concerns by offering in-house financing. But research reveals several pitfalls worth considering:

Only 40% of providers using in-house financing report they are happy with that arrangement.²
47% of patients need more than a year to settle healthcare debt, and 8% might never fully pay it off, per KFF Health.⁵

Carrying open accounts receivables over time result in greater administrative burdens for staff,⁶ with administrative tasks already accounting for 30% of healthcare costs for practices.⁷ Managing these administrative tasks could drain resources, making sustainability a challenge.⁷

Third-party financing: A path away from A/R headaches

Third-party financing like CareCredit, a Synchrony solution, has become a popular option for good reason:

Patients can apply for the CareCredit credit card, with options to finance costs over time, with near-instant credit decisions.
When patients use CareCredit, practices receive payment within two business days.
Staff can spend less time following up on payments and focus on patient care.

Still, staff must be prepared to guide patients through financing options. Clear communication reduces confusion and keeps experiences positive.²

Staff training and patient communication

Synchrony’s research indicates that 88% of patients prefer to hear about payment options before their appointment, yet 77% of providers wait until during or after the visit.²Shifting payment conversations earlier helps build trust, encourages informed decisions, and helps improve treatment acceptance.²

Effective communication can include cost estimate tools, scripted discussions, and user-friendly online applications. A well-prepared staff can help patients understand their financing options and pursue the care they want and need.

Finding the right fit for your practice

As out-of-pocket costs continue to rise, in-house payment plans may not be feasible for every practice. Whether you focus on elective procedures or essential treatments, third-party financing offers a powerful way to help reduce A/R, minimize administrative headaches, and help patients secure the care they want or need without delay.

Download the full report on third-party financing to learn more about improving payment conversations, exploring the data behind these trends, and discovering ways to create a better patient financial experience.