When Patients Ask About a “Healthcare Line of Credit:” Pay-Over-Time Options To Know

Cost is one of the most common reasons patients and clients delay or decline care, even when treatment is recommended. For health and wellness providers, that can mean gaps in care, incomplete treatment plans and added strain on revenue cycles.

Patients often look for ways to spread costs over time and may search online for a healthcare line of credit or medical line of credit. Third-party financing options can help bridge that gap by providing flexible ways to manage out-of-pocket costs. With the right approach, providers can help patients and clients move forward with care decisions while improving practice operations.

Here’s what you need to know about how these pay-over-time options work and how they can benefit your practice.

Health and Wellness Financing Today: Why Flexible Options Matter

When health and wellness costs collide with household budgets, patients may forgo care or struggle to complete treatment plans. For providers, this often shows up as delayed decisions, missed revenue and added administrative burdens.

But flexible pay-over-time options can help address these challenges by making the cost of care more manageable and predictable for your clients.

Rising costs are changing patient behavior

Rising out-of-pocket costs are a reality for many U.S. consumers.¹ For elective procedures or treatments that require multiple visits, patients and clients may delay, cancel or ignore care altogether due to financial concerns.

Patients want predictable ways to pay

Synchrony’s Lifetime of Healthcare Costs study found that more than a quarter of U.S. consumers have delayed recommended care due to cost.² The study also revealed how many patients prefer predictable monthly payments — with two-thirds of millennials and Gen Xers surveyed saying they want to spread costs over time, an approach that can be supported by pay-over-time options such as lines of credit, installment loans and credit cards.

Providers need more consistent payments

For providers, delayed or incomplete care can also mean delayed or incomplete payments. Offering financing options may help patients commit to recommended treatment plans while supporting more consistent collections and fewer administrative burdens.

What People Mean By “Healthcare Line of Credit” and How It Differs From a Loan

A “healthcare line of credit” or “medical line of credit” is a term consumers may use when searching for ways to pay over time for out-of-pocket health and wellness costs. In practice, pay-over-time options may be offered through different financing structures, including a line of credit, an installment loan or a credit card.

Unlike a traditional loan, which provides a one-time lump sum that is repaid over a fixed period, a line of credit can be reused as it’s paid down, which may be helpful for ongoing or multi-visit care.

Important note: Credit cards and lines of credit are different products, even though both are forms of revolving credit. CareCredit is a credit card that can be used for eligible health and wellness purchases at more than 290,000 enrolled provider locations, subject to the terms of the account.

How Pay-Over-Time Financing Options Work

Pay-over-time options are designed to be simple for both patients and providers. While details may vary by financing partner, the general process looks like this.

Apply for financing

Patients and clients can apply online or in a provider’s office using a mobile device or computer. Many applications are quick and may offer prequalification without impacting the patient or client’s credit score. With CareCredit, for example, they can see if they prequalify immediately with no hard credit check. Providers can also offer a QR code in-office so patients or clients can scan and apply on their phone, making the application process easy and convenient.

Receive a decision

Applicants may receive a decision quickly and, if approved, can use available credit for eligible health and wellness services. Some financing programs may offer promotional terms in certain situations.

Pay for care

Once approved, patients and clients can use available credit to pay the provider at the time of service. With CareCredit, the provider is paid within two business days.

Repay over time

Patients and clients pay their balance through monthly payments, while the financing company manages billing and account servicing. For example, with the CareCredit credit card, Synchrony Bank manages any defaults or late payments, freeing up practice staff to focus on patient and client care.

How Pay-Over-Time Options Can Benefit Providers

Offering pay-over-time options can support both patient and client decision-making and practice performance. Key benefits include:

• Predictable payments. Third-party financing solutions can help providers receive payments quickly, reducing reliance on extended in-house billing cycles.
• Less time spent on collections. With third-party financing, practice staff may spend less time managing payment plans or following up on outstanding balances.
• Improved treatment plan follow-through. Patients and clients may be more likely to move forward with recommended care when flexible payment options are available.
• Confident scheduling. Financing can help patients commit to multi-visit or long-term treatment plans without uncertainty about future costs.

Pay-Over-Time Options: A Comparison For Providers

“Healthcare line of credit” is a phrase consumers may use when looking for ways to pay over time for health and wellness costs. In practice, financing may be offered through payment plans, installment loans or credit cards — common pay-over-time options. Here are some of those basics:

How to Introduce Patient Financing

Introducing patient financing should feel like a natural part of the care and payment conversation. The goal is to present it early, clearly and consistently so patients understand their options.

When to introduce financing

• During the initial call or appointment scheduling
• When discussing treatment plans or providing cost estimates
• At check-in or checkout

How to present it

Normalize financing as one of several standard payment options. For example: “We offer several flexible payment options, including options that allow you to pay over time.”

Keep the message simple and supportive

Use clear, nontechnical language and emphasize flexibility. Patients should feel informed, not pressured.

Where CareCredit fits in

With more than 12 million CareCredit cardholders in the U.S., offering a health and wellness financing option to patients or clients can be as simple as letting them know your practice accepts it.

During those conversations, practice staff can include CareCredit as one of their common forms of payment. For example: “We accept cash, check and credit cards, including Visa, Mastercard, Discover, American Express and CareCredit.”

For patients or clients who are new to researching terms like healthcare line of credit or medical line of credit, CareCredit provides practices with ready-to-use marketing materials, including printed materials, website content and social assets to reinforce awareness.

How to Evaluate Patient Financing Companies

With so many patient financing companies out there, it helps to know what to look for.

When evaluating healthcare lines of credit and other financing options, consider asking the following questions:

• Do patients know the brand? Brand familiarity and trust can help patients feel more confident about utilizing a third-party financing company.
• What’s the patient experience like? Is the application process easy, clear and secure? Will patients have access to customer service that treats them with the care of a healthcare provider?
• What kind of provider support is available? Ensure the financing company offers staff training, onboarding and marketing tools to help the practice succeed.
• What compliance safeguards and data security can you expect? Protecting patients’ financial data security is as important as protecting their physical and mental health.
• How will the financing partner integrate into the practice workflow? A third-party financing company should integrate into the practice’s everyday workflow. Check practice management software for compatibility.
• What kind of reporting and support responsiveness is offered? Look for a financing partner that provides clear reporting tools and responsive support to help your team quickly address questions or issues.

Why Practices Choose CareCredit for Health and Wellness Financing

When choosing a health and wellness financing partner, many providers turn to CareCredit — used at more than 290,000 health and wellness provider locations nationwide. With cardholders in 1 in 10 U.S. households, many patients may already be familiar with and trust the brand.

With CareCredit, providers are never alone. They are supported by a financing partner committed to their success. CareCredit offers dedicated support to provider practices, including certified training, tools, marketing and customer care.

Read More: Uncover 10 myths about CareCredit and get a clearer picture of how third-party financing works.

Help Empower Patients Seeking a Pay-Over Time Option

Health and wellness costs don’t have to stand in the way of care. For patients who ask about ways to pay over time, including those who may use phrases like “healthcare line of credit,” practices can make it easy to move forward with recommended treatment while supporting more consistent, efficient payment processes.

Offer Flexible Financing at Your Practice

If you are looking for a way to connect your patients or clients with flexible financing that empowers them to pay for the care they want and need, consider offering the CareCredit credit card as a financing solution. CareCredit allows cardholders to pay for out-of-pocket health and wellness expenses over time while helping enhance the payments process for your practice or business.

When you accept CareCredit, patients or clients 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 financing solution, or start the provider enrollment process by filling out this form.

Author Bio

Natalie Burg is a writer, editor and editorial project manager with 20 years of experience. She uses her expertise from a range of industries, including economic development, business, sustainability and more, to create content that educates and engages readers.

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