In today’s healthcare landscape, patients are bearing more out-of-pocket costs than ever before. As deductibles, co-pays, and uncovered services grow, the need for flexible and affordable payment options has become essential. Patient payment plans help bridge the gap between access and affordability—but their effectiveness hinges on compliance. When patients adhere to their payment agreements, it benefits not only their financial stability and health outcomes, but also the sustainability of hospitals and health systems.
A Shift in Patient Expectations
Recent data underscores the growing demand for flexible payment options. According to a survey from CareCredit and CWH Advisors, 63% of all patients—and a striking 85% of those aged 18 to 34—would consider point-of-service financing for healthcare bills. Additionally, nearly half of all patients, and over two-thirds of younger adults, have already used a payment plan to manage medical expenses.
Patients are not just open to these options—they expect them. In fact, a Flywire survey found that 89.8% of patients would be willing to use a payment plan in the future, particularly when their out-of-pocket cost exceeds $1,000. These statistics reflect a broader consumer shift: patients now evaluate healthcare affordability just as they do any other major purchase.
Why Compliance Matters
When patients stay current on their payment plans, it creates a win-win situation. For patients, compliance reduces financial stress and increases their ability to receive necessary medical care without delay. This not only supports better health outcomes but also fosters a sense of trust and partnership with their healthcare providers.
For healthcare organizations, the impact is just as meaningful. Providers who offer structured financing options have seen an average 25.3% increase in annual production compared to those who don’t. Additionally, accounts receivable performance improves significantly—by as much as 37.7%—when financing solutions are in place. In practical terms, that means better cash flow, lower bad debt, and fewer billing-related disputes.
Offering payment flexibility also enhances patient loyalty. When patients feel supported and respected throughout the billing process, they are far more likely to return for future care and recommend the provider to others. In a competitive healthcare market, that loyalty is invaluable.
The Consequences of Non-Compliance
Of course, non-compliance carries serious consequences. Many patients without a payment plan or financing option face the impossible choice between delaying care or going into debt. A recent survey found that over half of adults have postponed medical treatment due to cost concerns. This can lead to worse health outcomes, emergency visits, and greater overall healthcare costs down the road.
For providers, unpaid balances result in costly collection efforts, write-offs, and lost patient goodwill. Financial barriers can also erode trust, making it less likely that patients will engage in follow-up care or preventive services.
In the long term, a lack of structured payment solutions creates a systemic strain on both patient access and provider viability. That’s why it’s critical to offer plans that are not only flexible but also transparent, compliant, and easy to manage.
New Price Transparency Policies Raise the Stakes
Recent federal policy changes are further shaping the financial landscape. As of July 1, 2024, hospitals are now required to use a CMS-approved template for their machine-readable files (MRFs) to standardize pricing information. The goal is to make it easier for patients to compare costs across providers and anticipate their financial responsibility before receiving care.
In addition to standardization, hospitals must now include estimated allowed amounts for services priced using percentages or algorithms, enhancing the clarity of the information provided. These MRFs must be posted in a dedicated “Price Transparency” section on hospital websites, with clear links and downloadable data.
To ensure accountability, hospitals are also required to attest to the accuracy and completeness of their pricing information. CMS has introduced stricter enforcement measures, including public disclosure of violations and potential monetary penalties for non-compliance.
These changes are pushing the industry toward greater openness and patient empowerment—but they also raise the bar for providers. It’s not enough to offer payment plans; those plans must be clearly communicated and fully compliant with federal regulations.
BridgeMed's Role in Patient-Focused Compliance
At BridgeMed, we understand how vital it is to meet these expectations with solutions that are both patient-friendly and fully compliant. Our payment plan platform is designed to empower patients while protecting providers, ensuring all financial interactions are fair, transparent, and easy to navigate.
By helping hospitals and health systems implement effective payment strategies, we support better outcomes for everyone. From increasing collections to building patient trust, compliance isn’t just about following rules—it’s about delivering compassionate, accessible healthcare.
If your organization is looking to strengthen its revenue cycle while supporting patients in a meaningful way, BridgeMed is here to help. Discover how BridgeMed can benefit both your patients and your healthcare organization with non-recourse flexible payment programs at www.mybridgemed.com.
