September 2012, Volume 8, Issue 9
Published by AEGIS Communications
A Second Chance
Genesis Credit™ patient financing offers a second look so that more patients have a second chance at quality care.
Affording quality care can be challenging for many patients. Dental insurance coverage has fallen to 53% nationwide,1 and the continued economic downturn further limits patients’ abilities to pay up front for care. To add to patients’ growing financial burden, many insurance plans cover only preventative care and basic procedures, so even patients with coverage often must settle for suboptimal care, such as an upper lateral extraction versus an implant. The benefits of oral health to overall health, as well as the psychological and financial benefits of an attractive smile, prompts the question: How do patients fill the gap and pay for needed treatment? The answer: They either forgo treatment until cash is available, or they finance their care.
The Demand for Second-Look Financing
Unfortunately, traditional financing is not an option for many patients. Recent economic conditions and changes in credit card regulations have caused primary lenders to tighten underwriting criteria, reducing credit availability. Compounding the issue, the recession has pushed more families into lower credit ratings. While patient financing through traditional lenders has become a must-have for many large- to mid-sized dental groups, dental management companies, and individual practices, typically only half of the patients who apply are approved.Those approved can access the funds for recommended care at the time of need. The other 50% are left with no choice but to delay or avoid essential or elective care. Patients and providers both lose as patients walk out the door.
The Business of Second-Look Financing
More dental groups, dental management companies, as well as individual practices are looking to second-look financing options to meet the diverse needs of their current patient base and to attract more patients. For providers with high enough gross margins and/or high fixed operating costs, treatments are profitable even when patient receivables are sold at a discount to their face value. With second-look financing, all parties win because: (1.) Practices generate increased treatment volume and are paid immediately, offloading the business of managing receivables; (2.) Patients can afford care and spread payments over time; and (3.) Lenders are compensated for credit risk through tiered discount rates.
At the end of the day, dental groups need efficient financing programs to fill the funding gap for more patients while maintaining office protocol, profitability, and personal attention. Practices should establish revenue and treatment volume targets and determine what the incremental treatment volume gained by offering secondary financing is worth. Typically, the discount rate charged by the secondary lender increases in tandem with risk. Quality second-look lending partners tailor products to the needs and discount tolerance of dental groups, dental management companies, and larger dental practices, and they adjust discount rates as more is known about the patient pool.
Secondary patient-financing programs must align with offices’ current payment infrastructure and make it easy for staff and patients to apply for financing and receive immediate decisions. Live agent support should be available during office hours. Credit lines should match the typical amounts patients need for treatment and terms, and conditions must be understandable and consistent with patients’ needs.
Genesis Credit Patient Financing Benefits the Bottom Line
There is a reason Genesis Credit is quickly becoming the “go-to” second-look financing option in the dental industry. Attributes of the Genesis Credit non-prime patient-financing programs increase treatment acceptance, improve patient retention, and grow overall care volume. Genesis Credit offers instant credit decisions and higher approval rates as well as an US-based customer service team with a focus on enhancing the patient relationship with each encounter. Genesis encourages fast pay-off so that patients will not avoid treatment due to outstanding balances. Genesis’ “high-touch” partner- and patient-centered approach is driven by the mission to help people access the care they deserve with credit they can afford.
Genesis Credit is offered by Genesis Financial Solutions, Inc., a provider of private-label lending to non-prime customers through partnering with healthcare providers, educational institutions, and merchants. Specializing in near-prime and non-prime for well over 10 years, Genesis Financial Solutions strives for operational excellence and seeks out long-term collaborative partnerships with large- to mid-sized organizations and individual providers. Genesis can provide financing options in all 50 states.
When patients need to finance dental care, they look to their dentist for help. The more payment options offered—including quality financing options that meet the needs of a growing number of patients and families with less-than-perfect credit—the better. Chances are they will return for other care as well, especially if providers create value-based relationships, including exceptional customer service and affordable financing.
Genesis Credit helps more patients choose proper care by financing those with near- to non-prime credit scores. With tiered discount rates based on a patient’s credit-worthiness, including affordable payments and terms that work for everyone, Genesis Credit helps ensure more appointments and repeat visits to help more practices help more patients afford care. Taking care of more patients—especially those with near- or non-prime credit scores—builds practices and positively impact patients’ lives.
1. National Association of Dental Plans/Delta Dental Plans Association 2010 Dental Benefits Report.
For more information, contact:
Genesis Financial Solutions
The preceding material was provided by the manufacturer. The statements and opinions contained therein are solely those of the manufacturer and not of the editors, publisher, or the Editorial Board of Inside Dentistry.