Choosing a patient financing program

ADA Business Resources recommends CareCredit patient financing program

For more than 10 years, ADA Business Resources has chosen CareCredit’s patient financing program as the one they recommend to ADA members.

ADA Business Resources uses the following criteria in evaluating endorsements:

• Companies must be industry leaders that are competitive in the marketplace, fiscally sound and available to dentists nationwide.
• Companies must have a higher service standard for members and must continuously deliver exceptional customer support.
• Each program must be peer reviewed by volunteer ADA members and staff to assess quality and performance.
• Each program should support the ADA’s mission to help dentists maintain a positive and productive practice environment.
• Each company endorsed by ADA Business Resources is also monitored on an ongoing basis to ensure that ADA members can trust that high standards are being consistently met.

ADA Business Resources also relies on member feedback in evaluation programs. Please email adabusinessresources@ada.org with any suggestions.

Editor’s note: This is the second in a three-part series educating members about patient financing, focusing on what questions should be asked when selecting a program.

You’ve thought about it, weighed the pros and cons and made the decision to offer a financing program to your patients. Now what? How do you choose which one to make available?

There are a number of factors to consider when selecting a company and a program that will allow your patients to finance their dental bills over time. It all starts with asking the right questions, said Dr. Steve Glenn, ADA Council on Dental Practice.

Allowing patients to finance their bills through a third-party company allows dentists to be paid for their services in a timely fashion, he notes. It also allows patients the time to spread out the payments to avoid a huge strain on their budgets. The process can work similarly to a department store credit card, and patients can find out on the spot how much credit they’re allotted.

“There’s certainly been times when our patients wouldn’t have been able to do treatment if we didn’t have some kind of a financing program,” said Donna Cioffi, office manager for Dr. Allen Pulsipher, an oral surgeon in Murrieta, Calif.

Dr. Glenn offers these factors to consider when looking at patient financing options:

• Stability and reliability. The economy has driven a number of patient financing programs away, so it’s important to select a partner that exhibits longevity in the market. Dentists should ask how long the company has been in business and check how vast their understanding of dentistry is.
• Reputation. Do some research. Ask around. Talk to your colleagues and other dental practice office managers to get their advice on different companies. Endorsements from professional associations should also be considered.
• Range and flexibility of payment options. Every program is different, so it’s important to learn about each company’s features before committing. Ask about interest rates and flexibility of payment options for patients. Also ask if the credit arrangement is revolving or term. Revolving credit can be used by the patient or a family member over and over again. Term programs are for specific procedures at a single office for a single family member.
• Patient and practice costs. Ask for specifics on the cost to patients and the cost to your practice. Are the patient rates the same regardless of their credit score? Does the cost to the practice change with the plan selected? It’s also important to learn about possible penalties and fees, including prepayment penalties. Your patient should understand their financial responsibility if they choose to use a financing program.
• Ease of use for the practice. Patient financing should be easy to implement within your practice and financial system. How much paperwork is involved? Can you choose how to submit the applications (i.e., phone, fax or online)? How is your practice paid and how long does it take?
• Ease of use for the patient and quick response. It’s important to find out how much time it takes for the patient to apply for patient financing and how long it takes for them to receive an answer from the company. How cumbersome is the application?
• Practice support. Ask what support the financial company will provide for your practice. Is training available? Are the tools online?

“Patient financing programs are management tools that can be extremely useful in helping patients access dental services in a timely fashion and, just like any other tool, should be utilized based on individual patient needs and the judgement of the dentist,” Dr. Glenn said.

Part three of the ADA News’ patient financing series, scheduled to appear this summer, will discuss how to implement a program in a dental practice.