The second of two parts.

Last month�s article on patient financing addressed factors to consider in selecting a patient financing program for your practice. But selecting the right program is only half the battle. The real key to patient financing is effective marketing and implementation. Here, I�ll identify five essential ingredients in the successful implementation of any patient financing program.

1. Shift the payment paradigm.

The medical community has done an amazingly effective job convincing patients that they are expected to pay cash for medical treatment. Does your office have a sign that says "Payment is expected at the time services are rendered?" If not, you�re in the minority. Patients are accustomed to this payment dictum, and fully expect to have no option but to pay in full on the day of the procedure. You need to actively change the payment paradigm, so patients understand that you expect them to pay by making affordable monthly payments, not by making a large unaffordable cash payment or credit card charge "on the spot."

How you present the concept of a monthly payment plan is very important to the success of the program. For example, saying "We offer financing" or "Financing is available," or worse yet, "We offer a payment plan to qualified patients" immediately raises the patient�s anxiety level by implying that this is a program for selected patients only.

Most patients, especially those with less than perfect credit, are going to assume that they won�t qualify. In fact, they may decline to apply at all, convinced that they won�t meet the necessary criteria. You stand a high probability of losing these patients completely, because chances are they don�t have the cash to pay for the procedure.

Instead, tell patients that you "provide a monthly payment plan." By using the word "provide" instead of "offer," (and eliminating the phrase "to qualified patients") you infer that the plan is delivered to everyone, rather than that the patient needs to earn the right to use it. Everyone knows that when they complete an application, a qualification process is under way. I believe that there is no reason to heighten the anxiety of the process by using negative words.

By referring to the program as a "monthly payment plan" rather than a "financing" program, you remove another frightening word. Using appropriate wording underscores the payment paradigm shift you are creating for your patients.

2. Highlight payments, not procedure cost.

We live in a cash-flow-based society where people make purchasing decisions on the basis of the affordability of the monthly payment, not the total cost. Almost all of the consumer products with which your procedure is competing are offered with immediate financing available, making it easy for the consumer to say "yes."

By presenting your procedure cost in the context of an affordable monthly payment, you place your procedure on an equal footing with all of the other items competing for your patient�s dollars. You also change the economic focus from procedure cost to monthly payment. What�s easier to say "yes" to � a $4,400 procedure cost or $115 a month?

3. Introduce your payment plan at the earliest patient contact.

Did you know that cost is the number one reason 82% of clinically qualified patients refuse elective procedures? Probably not, because most patients are too embarrassed to tell you they can�t afford the procedure. Instead, they say they�re afraid to undergo the procedure, or they need to "think about it," or they raise some other false objection. Then they walk out of your office, never to be seen again.

Meanwhile, you�ve wasted time qualifying patients for procedures they�ll never have done �� at least not by you. And what about prospects who never even make an appointment? They call to inquire about procedures, ask for cost estimates and get scared away by the seeming lack of affordability.

To use patient financing to your advantage, introduce every patient to your low monthly payment plan as early as possible. This includes mentioning your low monthly payment plan in your marketing and promotional efforts.

4. Inform every patient.

By letting all patients know that they can finance a procedure by making affordable monthly payments, you eliminate the single greatest objection to your procedure � the cost.

Introducing every patient to your payment plan can also improve your practice�s referral pattern. Typically, 70% of your future patients will be referred by past patients, which means past patients are your largest, most important sales force.

Like any other sales force, patients need pertinent information to effectively promote your practice to others. So, be sure to inform all patients about your payment plan � even those who are likely to pay cash. Research shows that a cash-paying patient will always pay cash, even if financing is offered. But if that cash-paying patient doesn�t know about your financing plan, he or she can�t tell others about it.

5. Use a single company.

I recommend that you stick to one or two plans offered through a single company. Offering plans through several companies has disadvantages. First, patients don�t want to fill out multiple forms, and multiple credit inquiries could damage their credit � which won�t encourage referrals.

Worse yet, offering multiple plans cheapens your offer by creating a retail impression. Patients may get the misconception that you�re desperate for them to have the procedure, which can subtly undermine their confidence in you.

Offering multiple plans can also be irritating to staff because it adds to workload. The time spent presenting and managing multiple financing plans could be used more effectively in other areas of your practice.

Make financing easy on staff and patients

Whatever program you select, it�s important that it�s easy to use and easy to explain. If it requires reams of paperwork and is difficult to understand, neither your staff nor your patients will want to be bothered with it. Of course, no matter how easy a program is to use, you�ll have questions. Make sure the company you choose will be available for questions and provide training for your staff.

Turnaround time for patient approvals is also important. Ideally, you want to receive approval while the patient is still in your office. Once the patient walks out the door you�ve lost control. For this same reason, avoid companies that require you to turn the patient over to them for processing.

Once you select the program that�s right for you and take the necessary steps to integrate it into your practice, you�ll be on your way to increased patient volume, practice revenue and practice profitability.

Editor�s note: This series was developing by consulting with all known providers of patient financing in the ophthalmology market, including:

• Health Capital Financial Group, LLC: Maria Montoya, 800-637-8324, Ext. 207
• The Hillside Group: William Curtis, 352-401-1900
• MEDCASH Health Systems: Laura Waring, 1-800-800-5820, Ext. 3337
• Unicorn Financial Services: Sonny DeRama, 888-999-5890.

Types of Patient Financing Programs: Installment Loans Versus Revolving Credit

Typically, patient financing companies provide either installment loans or revolving credit loans to patients. Which type you select depends on which one you believe will appeal to more patients. Here�s a look at each type.

• Installment loan. This is similar to a home mortgage, auto loan and financing for other "large ticket" items the patient may have purchased. It has no prepayment penalty and provides the patient with a fixed interest rate and repayment period, resulting in a fixed monthly payment amount. The primary advantages of installment loans are affordability, simplicity and consistency.
• Revolving credit. This is similar to a credit card. It generally provides the patient with an interest rate that may be fixed or subject to change, a variable repayment period and a variable minimum payment that is equal to a percentage of the unpaid balance. There is also no prepayment penalty with this type of loan. Its primary advantage is that the minimum amount the patient must pay each month declines over time.

William W. Curtis, managing director of The Hillside Group, has more than 25 years of business development and financial services experience in the medical industry. He can be reached at The Hillside Group�s Ocala, Fla. office: (800) 401-9631.