Money Talks
How Your View of Financing Could be Hurting (or Helping) Your Practice
When was the last time someone asked you to sign up for a credit card? Last week, yesterday, or maybe even today? As consumers, we're asked about financing at nearly every store we shop at, from Home Depot to Home Goods and from Best Buy to Banana Republic. Everyone asks, "Do you have our credit card? Have you joined our loyalty program? You can save 20% by financing today!" No matter if it is a $20 purchase or $2000, the refrain is the same.
Surprisingly, most medical practices fail to offer financing nearly as often and as proactively as these big box stores, even when the purchase amount is significantly higher. When asked "why," coordinators, counselors, and schedulers often share:
"I don't feel comfortable talking about money; it's just too salesy in a medical setting."
"Our patients are wealthy (or we practice in an affluent area), and they don't need financing."
"We tell them about financing. It is on our website, in our patient information packets, and we have brochures in the waiting rooms. If they're interested, they let us know."
At Alphaeon Credit, we've heard these responses hundreds, if not thousands of times, and we know practices that think this way tend to experience slower growth year over year compared to their peers in the same market. If you're interested in growing your practice and have ever found yourself repeating the statements above, please read on to maximize your growth potential!
"I don't feel comfortable talking about money; it's too salesy."
Remind yourself that you offer procedures and treatments that benefit the patient and are life-changing in many cases. By talking about finances, you're only helping patients get what they want and what you recommend. Talking about cost and the patient's financial situation is a positive; it is simply helping them.
If you're not mentioning the total cost until the end of the conversation, consider talking about it earlier and the availability of financing options. Patients know that procedures and treatments come with a price tag and start an internal dialogue regarding their finances from the start. They wonder, "How much is it? or "How am I going to pay for it?" As they have these thoughts, they tune out and may miss crucial information. How many times has a patient forgotten something you said? There’s a good chance they may have been thinking about the price instead of listening. By addressing cost early, you can ensure your patients can focus on what you are saying.
One of the best ways to get comfortable talking about money is by writing a script. You can adjust depending on the situation, but a well-written script provides the framework to help you discuss costs confidently. You may also incorporate elements of your script into the paperwork you share with patients so that you can read off your script without the patient even noticing. After writing your script, rehearse with some team members. Practice makes better! You can also email teamcredit@alphaeon.com to rehearse with a Business Development Manager or for help drafting your script.
"Our patients are wealthy (or we practice in an affluent area), and they don't need financing."
Over a decade ago, a plastic surgeon in Beverly Hills made a similar statement to an Alphaeon Credit team member. He advised the doctor, "Humor me. Just put out some brochures and see what happens". The doctor agreed and two months later called to share his surprise at finding out several wealthy patients were very interested in financing and eagerly applied and used their cards to pay for their procedures. We’ve had the same conversation and seen similar results hundreds of times since then.
When it comes to financing, many presume that financing is only for those with no other way to pay. In fact, financing, especially no-interest plans, is incredibly attractive to those who have cash in the bank. We’ve even had a patient who earns $900,000 a year apply for Alphaeon Credit! With no interest plans, the patient can borrow money at 0% while their money remains invested, earning interest. Utilizing no interest plans can be a wise financial move as long as the patient pays off the balance before their promotional plan period expires. Plus, making a large purchase, regardless of an individual's income, can create anxiety - financially and/or emotionally. Breaking down a large expenditure into smaller monthly payments can reduce this stress as the figures are more manageable.
"We tell them about financing. It is on our website, and we have brochures in the waiting rooms. If they are interested, they'll let us know."
When a patient is considering a procedure or treatment, often there is a tremendous amount of information to absorb. Most websites don't place financing in a prominent position or make it easy to find. Usually, financing is under "patient resources" or "insurance," so while financing pages tend to rank high in viewership, there is a good chance your patient didn't see it. And if the patient is in the waiting room, they are likely looking at their phone and not at the brochures scattered throughout. That is why we recommend always mentioning financing verbally, at multiple steps throughout the patient's journey - from the initial phone call, to consultations, to scheduling. The phrasing is simple, "Are you familiar with how financing works?" or "Did you know we offer financing?"
It is also helpful to personalize the patient's financing message by using the Alphaeon Credit payment calculator and estimate how much the exact procedure or treatment will cost with financing. If you don't know the precise amount, offer a range of monthly payment amounts. "Usually, these procedures cost between $70-125 a month if you choose to finance it, or $3,000-$5,000 if you want to pay in full".
Another way to educate patients about financing is to send them a pre-qualification link before their consultation via email or text. Plus, patients who have financing secured usually show up for their appointments and often schedule on the same day.
In conclusion, if you ever caught yourself in one of these mindsets, we encourage you to consider an alternate view. We are confident that by doing so, you will likely find more patients will be able to move forward, and they will be happier because you helped make it happen!
