When pet owners can\u2019t afford to pay for veterinary services, everyone suffers: the patient, which might go without proper medical treatment; the client, who can\u2019t help the pet and might consider euthanasia in place of costly treatment options; and the clinic, which misses out on the revenue.<\/p>\n
\u201cAffordability can be a primary barrier for pet owners when deciding on a procedure,\u201d said Patrick Keefe, director of veterinary health for the health care financing company CareCredit. \u201cIf a client\u2019s concern regarding cost is resolved early in the decision-making process, they may be more likely to accept recommended treatment. If cost isn\u2019t resolved, clients may delay or not accept recommended procedures.\u201d<\/p>\n
Neil Stanga, vice president of business development for Scratch Financial, pointed to a 2017 Bankrate report that showed nearly 6 in 10 Americans didn\u2019t have enough savings to pay a $1,000 veterinary bill.<\/p>\n
\u201cWith that in mind, it isn\u2019t surprising that pet parents decline 51 percent of veterinary procedures above $1,000,\u201d he said.\u00a0\u201cIt\u2019s estimated that as much as $31.5 billion in veterinary treatment was foregone [in 2016].\u201d<\/p>\n
Offering in-clinic payment plans is one way to ensure a patient gets the care it needs, but the collections process can take up the front office staff\u2019s precious time and energy. Clients might need months, if not years, to pay off their balance, and all too often they simply stop paying, forcing clinics to either write off the amount owed or turn to a collection agency.<\/p>\n
Partnering with one or more third-party financing companies can be a win-win for patients, clients and clinics. Terms vary by company, and clinics might be charged enrollment, merchant or transaction fees, but in general, the hospital is paid in full when a client opts for third-party financing of veterinary expenses.<\/p>\n
Scratch Financial supplies a loan rather than a line of credit.<\/p>\n
\u201cWhen someone applies for a credit card, it leaves a hard inquiry on their credit report even if they\u2019re declined,\u201d Stanga said. \u201cScratch isn\u2019t a credit card, so clients apply without affecting their credit score. Many of our customers are people who don\u2019t want another credit card.\u201d<\/p>\n
In decades past, applying for third-party financing was often cumbersome. Veterinary clients had to fill out lengthy paper applications, and then the front office staff spent significant time inputting the information, running the credit inquiry and waiting for a response. Today, clients can quickly and easily apply themselves, often from a smartphone.<\/p>\n
\u201cFinancing programs for veterinary clinics fundamentally function the same way they did 10 years ago,\u201d said Terry Fuller, business development manager for Wells Fargo Retail Services, which provides a credit card to veterinary clients. \u201cThe way clients access these programs, however, is very different. We\u2019ve seen strong migration away from old paper processes and credit card terminals to online and mobile applications, and integration with practice management software.\u201d<\/p>\n
When the treatment plan for a sick or injured pet will run into the thousands of dollars, informing the already emotional owner can be difficult. With third-party financing, CareCredit\u2019s Keefe said, \u201cPractices are able to have a payment solution which can help make the financial conversation easier.\u201d<\/p>\n
Clients who opt for a line of credit might feel more comfortable authorizing treatment of an ongoing medical problem or even a future issue, he said.<\/p>\n
\u201cOn average, CareCredit cardholders who opened their account at a veterinary office used their card 5.25 times per year for veterinary services in 2016,\u201d Keefe said.<\/p>\n
The value to the clinic is being paid upfront without having to follow up with the client for monthly payments. The finance company assumes full liability on the debt so that if the client defaults, the practice owner is unaffected.<\/p>\n
\u201cWe don\u2019t want to see our customers default,\u201d said Fuller, with Wells Fargo. \u201cIf a customer has difficulties, we want them to contact us and we will work with them to find a resolution.\u201d<\/p>\n
Third-party financing gives clients the peace of mind that they will be able to afford needed care for their pets. Typically, many financing plans are like other consumer credit cards.<\/p>\n
\u201cIt is a credit card with a revolving line of credit that can be used repeatedly, subject to credit approval and availability, to pay at any location within CareCredit\u2019s network of over 200,000 enrolled providers and select retail locations,\u201d Keefe said.<\/p>\n
Alternatively, Scratch\u2019s payment plans allow clients to pay a large bill over time without the need for a credit check. Customers can choose from one of two plans.<\/p>\n
\u201cScratch\u2019s Pay Later product gives customers 30 days to pay a bill with no interest and without any hard credit inquiry,\u201d Stanga said. \u201cClients with pet health insurance often use Pay Later so they don\u2019t have to outlay all of the money upfront and wait to be reimbursed by the insurance company.\u201d<\/p>\n
Ninety-five percent of Scratch customers choose the other option, Pay Over Time, a simple-interest, 12-month payment plan, Stanga said.<\/p>\n
One choice doesn\u2019t always work for all clients, so the best approach for a veterinary practice might be to offer a variety of financial options, including credit cards and third-party payment plans. In some cases, in-house payment plans might be an option for clients unable to get credit approval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Clients can quickly and easily apply for financing themselves, often from a smartphone.<\/p>\n","protected":false},"author":42,"featured_media":2120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[340],"tags":[],"class_list":["post-2119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-february-march-2018","clinical_topics-finance"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"\n