Patient Credit DECLINED…What to do NOW?

At Healthcare Finance Direct, we frequently receive calls from providers who are looking for a 2nd, even 3rd option for financing their patients because they are experiencing an influx of turn downs from their “Primary” lenders. They are trying to find a solution that mitigates their patient declinations while still receiving their money in advance. They love the fact of getting paid upfront and that the financial risk for them is low (or so it seems), even if that comes with paying a startup fee, monthly fees and/or annual fees. And who wouldn’t want that? There is no better feeling than getting money immediately placed in your pocket.

So how does HFD solve this problem?

First, let’s tackle the existing issue(s). If you are in the “Financing” space, you know that most lender criteria for approval are stringent, in turn decreasing the percentage of approvals for those who apply. Simply put, lenders are choosing to be a bit more picky with whom they lend money to nowadays. With FICO driven assessments, if your patient’s credit score isn’t in tip top shape, chances are they’re leaving your office empty handed. But you can’t fault the lenders or banks for this, they’re simply making a decision that mitigates their losses and fit’s into their credit profiles. After having the “sorry your were declined” conversation with patients, providers go on the hunt for another lender that will approve their turn downs; and don’t forget the upfront funding. Finding that the next lender approves only small a percentage of their existing declinations, they then look for a 3rd option and so on and so forth. At the end of this process, they find themselves with 3 or more different lenders and patients that are still being declined. These multiple hard credit pulls hurt the patient’s credit and worse drops their score to the point almost nobody can approve the marginal credit patient’s. So what on earth could be the problem!?

The unfortunate answer: “Lenders don’t want to front money to people who have bad or no credit.”

This is where HFD’s solution comes in. By not giving you money upfront HFD can approve almost everyone. Using a proprietary algorithm, HFD software solves for a down payment the patient must make to move forward with the treatment plan. The provider gets 100% of the down payment and the patient pays the balance over time. You then pick the term length, monthly payment required and the interest rate you want to earn (subject to state regulations contact us to see what works in your state). This creates a long-term revenue stream for the provider and HFD’s program works perfectly alongside your primary lender. Those patients that don’t seem to be getting approved by anyone, can be approved by HFD. We will give our guidance, but this is ultimately decided by you.

The goal is, that over time you will have created a stream of revenue coming in from all of the patients that you have set-up through HFD’s programs, instead of those patients walking out of your door. We give patients a lot of credit and believe you should too. Contact us today to learn why some of the largest medical practices in the country use the HFD solution for their patients, you will be in good company.

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