In recent years, consumers have become progressively more conscientious about their health, which has led to a veritable boom in demand for wellness services. In fact, holistic wellness is a concept that is gaining traction, with a growing number of consumers becoming more curious about it and integrating it into their own standard practice of maintaining their health and wellness. The rising focus and expanded definition of healthcare services paired with increased transparency on the price to attain health and wellness resources has contributed to a culture of “shoppable health and wellness care” where consumers are electing to comparison shop before seeking products and treatments to find the best price.
Shoppable services for holistic wellness
Shoppable health and wellness services are defined as healthcare resources that can be scheduled ahead of time and are a non-urgent need. Therefore, there is time to research online and call providers to price check different services offered. Treatments can range from screenings and blood tests to joint surgeries, and even childbirth procedures.
With an increase in consumers actively seeking out wellness services to proactively manage their long-term health, providers are navigating a highly competitive market where it is important to stand out and inspire customer loyalty by facilitating accessibility and a positive relationship.
Costs play an important factor in consumer decisions around wellness services. Research has shown that even with insurance, out-of-pocket health expenses in the U.S. still surpass $400 billion annually, and as many as 53% of patients delay medical care due to cost. In contrast, research has shown 76% of consumers would pursue additional medical care if they had better ways to pay for it. This has led to increased use of financing plans to pay for these services, which were traditionally offered in-house directly by wellness providers.
Impact on providers
As the demand for wellness services continues to increase, so have the workloads for providers, as well as administrative and financial burdens. For instance, a KFF analysis of government data from earlier this year revealed that Americans are approximately $220 billion in medical debt. These costs add significant administrative workload to revenue cycle staff and contribute to overall staff burnout.
Fortunately, there are alternative payment options such as multi-source financing followed by second-look financing to help patients manage healthcare costs so they can access quality wellness services. Third-party financing providers allow consumers greater access to payment options for their wellness services and thus help them manage costs for the care they need. These third-party providers are increasingly establishing partnerships with second-look financing programs, which in turn, help offer more customers access to credit when they are not eligible for those third-party programs.
Benefits of multi-source financing
Third-party financing solutions have become more prevalent because they benefit providers by reducing administrative burden and increase payment flexibility to benefit consumers. With this improved flexibility in cost management, providers also improve potential accessibility for their customers that qualify for third-party financing by connecting them to payment options that may not be readily available through other wellness service providers. More cost management options provide a level of empowerment to consumers by giving them the opportunity to receive the wellness care they want and need, and within their own timelines.
When it comes to millennials and younger consumers, specifically, they value digital and streamlined programs when managing their healthcare expenses. For instance, PYMNTS revealed that 35% of bridge millennials and younger consumers would be willing to switch providers for better digital management tools, which suggests those online tools are highly beneficial for attracting new customers. In short, a provider who connects prospective customers to digital financing solutions would be preferred over a provider who does not.
Ultimately, consumers are seeking more wellness services while providers are struggling to keep up with the rising demand and the burdens associated with billing and collections. Multi-source financing helps expand accessibility of these services while minimizing the administrative and financial burden on providers by offering cost management options to consumers. By increasing the availability of services through flexible payment methods, providers have an opportunity to expand their customer base and establish themselves as trusted partners in the wellness journey. The additional offering of second-look financing options to consumers who were not eligible for first-line third-party financing further expands this pool of prospective customers, increasing accessibility to people seeking these services.
Photo: raw, Getty Images
Alberto (Beto) Casellas is Executive Vice President and Chief Executive Officer of the Health & Wellness platform of Synchrony, one of the nation’s premier consumer financial services companies. As the CEO of Synchrony’s Health & Wellness platform, Beto is responsible for driving growth through comprehensive healthcare payments and financing solutions with a network of health and wellness providers and retailers.
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