The Impact of Buy Now Pay Later on Healthcare

About a 2 min. read

Authors
Julia Walker
Account Director

Buy Now, Pay Later (BNPL) has blossomed in the retail space, offering consumers new ways to pay, but what about Healthcare? Some predict inflation coupled with clinical workforce shortages could mean costs will spike up to 7% in 2024.1 Patients are looking for options. From medical credit cards to installment loans to Care Now, Pay Later (CNPL, BNPL’s close cousin), financing options in the healthcare world are rapidly growing.

History & Symptoms

What are the true costs of rising Healthcare costs? According to KFF, “four in ten U.S. adults say they have delayed or gone without medical care in the last year due to cost”3. Most often those services are ones not covered by insurance such as dental, vision, and prescription drugs. Moreover, this burden disproportionately impacts uninsured adults, Black and Hispanic adults, and those with lower incomes, with potentially devastating consequences. Even those with insurance report difficulty affording care due to spiraling out-of-pocket costs. Thus, there is strong interest in Healthcare payment plans, but “less than half [are] actually offered plans”4

Treatment Plan

Having different financing options can benefit both patients and providers. Breaking up payments makes healthcare costs more manageable for patients, enabling them to seek care in the first place or complete necessary treatments. For providers, CNPL is one way to create more consistent cash flow and increase patient satisfaction. So how can you enter or refine your offerings in the space? Here’s what you can do:

  • Understand the Landscape: The CNPL market alone went from $10M in 2019 to $230M in 20212 and continues to expand. Use foundational research to understand patient and provider pain points and assess marketplace offerings to identify unmet needs and subsequent white space opportunities.
  • Hone Positioning with Providers:The first hurdle with any financing product is selling to providers; second is providing straightforward, easy to understand patient options and benefits that providers can easily communicate. Develop a compelling value proposition and enhance marketing by conducting message testing among providers and patients to determine what messages resonate best and how best to deliver.
  • Cater to Consumers: Refining the product and patient experience is particularly important to optimize success and grow market share. Improve your offering with product design research to identify drivers of use and to prioritize the most important features and capabilities.

CMB assists clients in building and refining messaging /positioning as well as designing products that optimize the patient experience. Contact us today to get started.

LINKS

  1. https://www.healthcarefinancenews.com/news/payers-could-see-7-spike-healthcare-costs-2024
  2. https://www.statnews.com/2023/01/03/afterpay-affirm-buy-now-pay-later-health/
  3. https://www.kff.org/health-costs/issue-brief/americans-challenges-with-health-care-costs/
  4. https://www.pymnts.com/healthcare/2021/care-now-pay-later-doctors-bnpl/