Patient Lending Programs

With the increasing prevalence of high deductible insurance plans, patients are increasingly in need of payment assistance options for financing medical bills.

Some hospitals choose to carry this debt on their own and manage the resulting impact on their cash flow. Others are turning to third parties who can provide loans to patients. Washington state’s charity care laws make this a complex area for hospitals. Special attention must be given to training staff on charity care policies as well as conversations around patients’ ability to pay bills. Detailed information can be found here: Charity Care and Financial Assistance at Washington State Hospitals

Third party lenders should fit within carefully thought out charity care policies, and offer a customer friendly product. Hospitals will want to understand how their patients are treated by these lenders, including whether the lender will turn delinquent patient accounts over to collections agencies. Some vendors in this space will take over patient accounts and provide the hospital with income. Finally, hospitals should understand the fees these lenders charge and the circumstances under which fees are returned.