Banks are beginning to see the value in forming relationships with clients in the healthcare industry. From medical equipment financing to patient lending, there are seemingly endless opportunities to get your bank’s foot in the door with providers.
Yet we think there’s no better way to start offering healthcare services than with medical loan financing. We may be biased, but we aren’t alone.
Curious why more banks than ever before are offering healthcare loan services? Keep reading for our top 3 reasons plus how you can become one of our partner banks.
1. Bad Debt is Increasing
The top 5 bad-debt hospitals in the US carry uncollected amounts ranging from $337 million to $673 million.
With the rise in high-deductible health plans and average prices for healthcare services, patients are struggling to pay their bills on time. And when those bills go uncollected, they accumulate as bad debt for hospitals.
All this has added up to a serious dilemma, a dilemma banks offering patient loans are primed to address.
2. M&A is Ramping Up
803 mergers and acquisitions as well as 858 partnerships took place in 2018. And this trend is only expected to ramp up in 2019.
Why so much consolidation? Because too many hospitals are going bankrupt from an interrupted revenue cycle. From payer reimbursement delays to collection efforts that just don’t work, positive cash flow is a serious problem for healthcare providers.
Medical lending services help hospitals collect patient balances on time, solving half of the problem and allowing them to operate without need for consolidation.
3. Providers Know the Value of Medical Loan Financing
Medical debts are the #1 reason for personal bankruptcy and 15% to 20% of hospitals in the US are responding with new patient loan services.
Healthcare providers recognize the value of a system that can reduce their bad debts, speed up collections, and help them stay afloat in today’s rocky healthcare economy. But they also recognize the importance of improving the episode of care for both patients and providers.
Patient lending programs are clearly in high demand. And it’s no wonder since they solve some of the healthcare industry’s top issues and concerns.
The medical loan financing industry is looking more promising than ever in 2019. Make sure you’re getting a piece of the pie by offering medical loan services at your bank. Call us today to find out how you can become one of our partner financial institutions.