Care Credit just sent letters to many physician subscribers that use patient financing to inform them that they will no longer will be giving credit to non-plastic surgeon physicians doing aesthetic treatments. They are also limiting the amount of medical procedures they will finance on the card. Many users of Care Credit and the other well-known patient finance company, Chase Bank, have complained recently that many of their credits are being declined. This is especially difficult for a physicians bottom line in a time when many patients credit cards are charged up and cash maybe limited.
Both of these companies programs offer credit cards. Though that is not bad the reason for these cutbacks are due to the fact that these same companies offer credit cards to individuals and businesses and they have suffered losses due to the economic situation. Another reason for the cut backs is the recent credit card reform laws that limits some of the out of control practices that these companies have got away with for years. Offering a special 0% interest or same as cash program but if the balance isn’t paid off by the expiration date they back date the interest to day 1 and make it at their highest rate around 24%.
Want to see a patient get mad? Wait till he or she sees the program that they thought was a great deal get jacked up to the hilt and start charging late fees etc. It’s the same old credit card game that’s made these companies huge profits for years. Small print and guess what the consumer can do NOTHING about it. It’s in the print, they can change the rate, etc.
Patient Financing is not the only credit cards we’ll see cut back many credit card limits have been cut already and the rates increased before the new law went into effect. This helped the credit card companies that had 10 long months to figure out how to beat the system before it went into effect, do just that beat it. They are masters at their game so give them the time and they will win the game.
If you have recently found your patient financing program dropped or that you can’t get credits approved. There is hope. You can contact phewett@pfcfinance.com or go to www.pfcfinance.com for patient finance programs that offer better rates and lower credit score approvals.
Patient Financing is a very common program offered by physicians specializing in elective procedures. Though some physicians are adding tthe program for people who have high deductibles on their insurance or don’t have insurance. To answer your questions Marian. Not all people work for companies or have the ability to have HSA programs.
People finance procedures because they want to have them done and don’t want to charge up their credit cards for the medical procedures.
It’s a billion dollar plus industry so obviously there is a need especially in these economic times.