The financial pressures on the U.S. healthcare system are nearing the point of no return, with millions of patients struggling to afford routine medical care and emergency expenses. Hospitals lose millions of dollars each year due to unpaid medical bills and uninsured patients, as financial constraints lead many to cancel appointments or abandon care altogether. The burden of patient debt has escalated dramatically in recent years, and patients remain worried about how they'll pay their next hospital or clinic bill.
The repercussions this has on the healthcare system are relentless, circling back to providers facing a decrease in revenue every time a patient cannot pay a bill. Patient balances over $7,500 have risen by 300%, while high-deductible health plans (HDHPs) are becoming more popular. This especially affects lower income families who, despite lower monthly premiums, face high deductibles of $16,000 or more, leading to patients skipping or delaying care due to concerns over high out-of-pocket costs.
Healthcare providers also feel the impact, as debt from self-pay after insurance now stands at 58%. This financial strain threatens the viability of healthcare systems and exacerbates health disparities.
One of the main challenges in addressing these issues is the traditional approach to patient financial access, which often lacks the flexibility and transparency that today's patients expect. Patients want pre-service estimates, clear communication about their financial responsibilities, and assistance with payment options. Meanwhile, providers are looking for ways to reduce cost-related cancellations—currently at more than 15%—and improve patient engagement through better financial tools and insurance verification processes.
This revolving door of increased patient debt and growing disparities in healthcare access has created a need for innovative solutions that address the root causes of these financial challenges.
The role of patient access in healthcare innovation Addressing these challenges requires a reimagined approach to patient access that incorporates other industries' credit and financing systems. By adopting a patient-centric model that prioritizes affordability and convenience, such as those used in the retail sector to improve affordability for a broad range of consumer-risk profiles including subprime and below. Healthcare organizations can better meet the needs of their patients while improving financial outcomes by embracing these new practices and technologies.
