--- title: How Patient Financing Helps Mitigate Declining Margins in Healthcare description: How Patient Financing Helps Mitigate Declining Margins in Healthcare --- [![Epic River](https://blog.epicriver.com/hs-fs/hubfs/color-transparent-logo.png?width=320&name=color-transparent-logo.png "Epic River")](http://www.epicriver.com/home) - [Home](https://www.epicriver.com/) - [About](https://www.epicriver.com/about) - [Our Solution](https://www.epicriver.com/) - [News](https://epicriver.com/#) - [Contact](https://www.epicriver.com/) - [Support](https://knowledge.epicriver.com/knowledge/kb-tickets/new) - [Knowledgebase](https://knowledge.epicriver.com/knowledge) ![blog_bg-2023-1](https://blog.epicriver.com/hubfs/blog_bg-2023-1.png "blog_bg-2023-1") # How Patient Financing Helps Mitigate Declining Margins in Healthcare Posted by [Jessica Toney](https://blog.epicriver.com/author/jessica-toney) | Apr 2, 2019, 2:20:12 PM - [Tweet](https://twitter.com/share) Hospitals’ operating margins have decreased by 38.7% since 2015. One main cause explains this decline: expenses are growing at a faster rate than revenues. How can healthcare providers mitigate the adverse effects of declining profits? One method is to install new revenue cycle management tools like **patient financing**. Want to know more about decreasing healthcare margins and what you can do to boost revenues now? Keep reading. **Healthcare Expenses are Growing Faster than Revenues** According to the study by Navigant, there are 4 reasons for decreasing hospital profits. 1. Lower demand for surgery and inpatient admissions 2. Poor collection rates for private accounts in non-ACA states 3. Less coverage from Medicare after budget cuts 4. Health insurance isn’t delivering on value-based contracts The Affordable Care Act initially benefited healthcare providers. Yet reductions in policy updates led to accumulations of bad debt from patients with denied Medicaid coverage. Meanwhile, the introduction of new hospital technologies and payment solutions are driving expenses through the roof. These innovations include: - Implementation of electronic health records - Pay-for-performance and accountable care initiatives - Value-based health insurance contracts Experts have also referenced shortages in nursing staff leading to increased pay demands, specialty drug prices, and reformed retirement fund costs as contributors to dwindling margins. All these factors have added up to produce more expenses than healthcare revenues can cover. In fact, 60% of hospitals are projected to have negative margins by 2025. **How Patient Financing Can Help** While policy reform is needed to undo the majority of the damage, there is something administrators can do to rescue revenues now. **Patient financing** can help mitigate declining healthcare margins. Hospitals that implement a medical lending strategy reduced bad debt and improved patient and employee satisfaction. Topics: [Patient Financing](https://blog.epicriver.com/topic/patient-financing) #### Written by [Jessica Toney](https://blog.epicriver.com/author/jessica-toney) ## Leave a Comment ### Recent Posts ### Topics - [Bankadelic (2)](https://blog.epicriver.com/tag/bankadelic) - [banking opportunities (6)](https://blog.epicriver.com/tag/banking-opportunities) - [Blog (5)](https://blog.epicriver.com/tag/blog) - [CRA ratings (1)](https://blog.epicriver.com/tag/cra-ratings) - [Credit Unions (5)](https://blog.epicriver.com/tag/credit-unions) - [DAR (1)](https://blog.epicriver.com/tag/dar) - [esignature services (1)](https://blog.epicriver.com/tag/esignature-services) - [Financial Education (2)](https://blog.epicriver.com/tag/financial-education) - [financial institutions (10)](https://blog.epicriver.com/tag/financial-institutions) - [Health Care Loans (19)](https://blog.epicriver.com/tag/health-care-loans) - [health credit services (6)](https://blog.epicriver.com/tag/health-credit-services) - [health credit services online (11)](https://blog.epicriver.com/tag/health-credit-services-online) - [healthcare administration (4)](https://blog.epicriver.com/tag/healthcare-administration) - [healthcare administrative costs (1)](https://blog.epicriver.com/tag/healthcare-administrative-costs) - [healthcare billing (2)](https://blog.epicriver.com/tag/healthcare-billing) - [healthcare billing solutions (3)](https://blog.epicriver.com/tag/healthcare-billing-solutions) - [healthcare costs (1)](https://blog.epicriver.com/tag/healthcare-costs) - [healthcare finance (6)](https://blog.epicriver.com/tag/healthcare-finance) - [Healthcare Finance Online (13)](https://blog.epicriver.com/tag/healthcare-finance-online) - [healthcare financing (2)](https://blog.epicriver.com/tag/healthcare-financing) - [healthcare lending (3)](https://blog.epicriver.com/tag/healthcare-lending) - [healthcare loans (4)](https://blog.epicriver.com/tag/healthcare-loans) - [hospital financing (3)](https://blog.epicriver.com/tag/hospital-financing) - [Lending as a Service (7)](https://blog.epicriver.com/tag/lending-as-a-service) - [low-interest medical loans (2)](https://blog.epicriver.com/tag/low-interest-medical-loans) - [medical bill financing (2)](https://blog.epicriver.com/tag/medical-bill-financing) - [medical billing (7)](https://blog.epicriver.com/tag/medical-billing) - [medical billing solutions (7)](https://blog.epicriver.com/tag/medical-billing-solutions) - [medical debt (4)](https://blog.epicriver.com/tag/medical-debt) - [medical finance (2)](https://blog.epicriver.com/tag/medical-finance) - [Medical Lending (24)](https://blog.epicriver.com/tag/medical-lending) - [Medical Loan Financing (18)](https://blog.epicriver.com/tag/medical-loan-financing) - [medical loans (7)](https://blog.epicriver.com/tag/medical-loans) - [News (78)](https://blog.epicriver.com/tag/news) - [patient billing solutions (1)](https://blog.epicriver.com/tag/patient-billing-solutions) - [patient financial services (5)](https://blog.epicriver.com/tag/patient-financial-services) - [Patient Financing (26)](https://blog.epicriver.com/tag/patient-financing) - [patient lending (19)](https://blog.epicriver.com/tag/patient-lending) - [patient loans (3)](https://blog.epicriver.com/tag/patient-loans) - [patient responsibility (3)](https://blog.epicriver.com/tag/patient-responsibility) - [patient satisfaction (1)](https://blog.epicriver.com/tag/patient-satisfaction) - [Podcast Feature (3)](https://blog.epicriver.com/tag/podcast-feature) - [price transparency (1)](https://blog.epicriver.com/tag/price-transparency) - [reduce DAR (2)](https://blog.epicriver.com/tag/reduce-dar) - [revenue cycle management for physicians (2)](https://blog.epicriver.com/tag/revenue-cycle-management-for-physicians) - [Team (1)](https://blog.epicriver.com/tag/team) see all ### Subscribe #### About Us Our commitment to utilize the lowest cost of capital and remove all unnecessary overhead from the loan process enables us to help everyone make the best possible financial decision when borrowing money. #### Latest Blog Posts #### Contact Us 242 Linden Street Fort Collins, CO 80524 Phone: (970) 292-5045 Email: info@epicriver.com © 2020 Epic River - - -