Addressing Cost Concerns With Dermatology Patient Financing

The affordability of services is a common barrier to health and wellness care. Seeking specialized care, including dermatology, can sometimes add to the financial challenges patients face.

Concerns over out-of-pocket expenses often lead patients to delay care they want or need.¹ This can interfere with a doctor's ability to deliver a full recommended treatment plan, including prescriptions. Additionally, when more patients put off care, it can result in decreased revenue for dermatology practices.

Dermatologists can help ease concerns over the costs of both elective and essential care by proactively offering clear information about payment options, including flexible financing, which can help patients manage their dermatologic expenses with confidence.

Cost Concerns and How They Drive Care Decisions

While health insurance generally covers patients seeking dermatology care deemed medically necessary, patients may still be responsible for certain out-of-pocket expenses such as copays, insurance deductibles or specific products or procedures that are not covered under their insurance plans. Meanwhile, cosmetic services such as laser therapies, BOTOX^® injections, dermal fillers, microdermabrasion, chemical peels and others usually are not covered by insurance and will become the patient's responsibility. Dermatologic care can quickly add up, with average out-of-pocket costs reaching $222 for medical treatments and $465 for cosmetic procedures.²

Although dermatology patients don’t typically start their healthcare journey concerned about cost, the amount they have to pay out of pocket can sometimes be unexpected. Synchrony research has found that:²

• 1 in 4 dermatology patients and just under half (45%) of cosmetic dermatology patients say they are surprised by the cost.
• Dermatologists admit the bill can be higher than what is quoted 19% of the time and sometimes by more than 20%.¹
• More than half of dermatology patients prioritize payment options when searching for a provider.

To help address patients' cost concerns, especially when they are seeking elective care and are facing higher costs, dermatologists and their care teams should take steps to:

1. Increase transparency around dermatologic care costs whenever possible — have cost conversations early and provide detailed estimates.
2. Offer flexible payment options to make it easier for patients to pay for their out-of-pocket expenses.

Dermatology Patient Financing: How It Can Help Patients

Providing patients with flexible payment options can help ease the concern of costs, helping patients to pursue both necessary and elective treatments. Currently, only 11% of dermatology practices offer payment options to patients without being asked.¹ Some report their office doesn’t promote payment options at all, and those that do mostly offer patient financing options on the bill.¹

One solution dermatologists may want to consider is the CareCredit health and wellness credit card, which offers patients a way to pay for their care over time. This is a revolving line of credit that offers promotional financing and can be used for a variety of treatments and procedures. A solution like CareCredit enables patients to use their credit card repeatedly — not only in their dermatologist's office but at more than 270,000 provider and retail locations within the CareCredit network.

In a limited number of industries, CareCredit cardholders can pay for products and services that will be received within 90 days of the initial purchase, allowing patients to pay in a bundle instead of in separate transactions. This can be especially helpful for recurring dermatology treatments like laser treatments, chemical peels and certain types of injectable fillers.

How Flexible Financing Can Benefit Physicians

Flexible financing also offers a range of potential benefits for dermatologists:

• Better cash flow since many financing solutions allow practices to receive payments right away
• More focus on patients and less on handling administrative billing and collection issues
• Helps attract new patients, especially those willing to switch to a healthcare provider that offers digital finance and payment options
  • In 2023, 1 in 2 current CareCredit cardholders among cosmetic patients surveyed said they would switch providers if they didn’t offer CareCredit.²
• Greater patient loyalty because patients who have a positive experience at a doctor's office, including with the payment process, are more likely to return

Flexible financing through CareCredit has no monthly or annual fees for physician enrollment. Approved customers pay the doctor's office, which receives payment directly from CareCredit within two days with no recourse if the patient doesn't pay.*

Taking the Extra Step to Educate Patients

Whether patients are looking for payment solutions for essential care, elective care or both, it's important to help them understand their financial responsibility and offer solutions to help them pay for their out-of-pocket expenses.

It can be helpful for dermatologists to remind patients with insurance that January 1 may reset their health insurance deductible. Instead of the standard copayment they are used to owing, a patient with a high deductible health plan may receive a much larger dermatology bill than expected. Helping educate patients about annual deductible resets may improve patient satisfaction and open a conversation about flexible patient financing services, so patients don't delay needed or desired care.

Patients with Health Savings Accounts (HSAs) may see some of their account roll over from year to year.³ Those with Flexible Spending Accounts (FSAs), however, may reset at the start of the new year, meaning patients with those types of health accounts may also appreciate a reminder and discussion about payment options.⁴

Research shows that patients want improvements in the healthcare payment experience. They want better explanations of their healthcare bills, improved communication with their providers and consumer-friendly payment methods.⁵

Taking the time to consider a patient's financial experience and educate them on financing solutions can go a long way toward ensuring a successful doctor-patient relationship where both parties benefit from the outcome.

A Patient Financing Solution for Your Dermatology Practice

Want to help ease the cost concerns patients have regarding their dermatology care? Then you may want to consider offering CareCredit as a financing solution. CareCredit allows cardholders to pay for dermatology procedures, treatments and products over time while helping enhance the payments process for your practice.

When you accept CareCredit, patients can see if they prequalify with no impact to their credit score, and those who apply, if approved, can take advantage of special financing on qualifying purchases.** Additionally, you will be paid directly within two business days.

Learn more about the CareCredit credit card as a patient financing solution for your dermatology practice or start the provider enrollment process by filling out this form.

Author Bio

Leslie Lang is a writer with more than 20 years of experience covering health and wellness, banking and finance and technology. She has written for leading publications and organizations, including GoodRx.com, Healthgrades.com, Google, Adobe, Microsoft and more.

Healthcare payment and financing solution

The CareCredit health and wellness credit card helps improve the payment experience for patients and clients, and your financial performance.

Get Started