Hundreds of radiology practice locations use medical credit cards to secure quicker patient payments
Hundreds of radiology practices are using medical credit cards to secure quicker patient payments, according to new research published Friday. But the trend raises questions about the burdens being placed on a potentially vulnerable population.
These cards offer deferred interest terms, letting patients avoid borrowing costs for a promotional period of 6 to 18 months. However, they often charge high rates at an average of 26.99%, with one-fourth of consumers unable to pay the balance before interest kicks in, one survey found.
University of Chicago researchers analyzed the prevalence of medical credit cards by specialty, sharing their findings in JAMA Health Forum. Some 1,166 imaging and radiology practice locations currently accept medical credit cards, they discovered, accounting for about 14% of the specialty.
“Medical credit cards may be appealing to physician practices because they ensure that the practices receive the full payment for services without enduring the burdens associated with bill collection,” health policy researcher Joseph Bruch, PhD, and co-authors wrote April 11. “That said, patients with low financial literacy may have a hard time understanding the terms of the cards and may be vulnerable to deferred interest payments after the promotional period.”
Patients used the cards to pay $23 billion in healthcare expenses between 2018-2020, another analysis determined, resulting in $1 billion worth of deferred interest. This latest study found 180,311 practice locations using medical credit cards, concentrated in the Northeast. Dentists led the way with 67% of locations (or 90,644) followed by podiatrists (46%/3,474), chiropractors (30%/11,908), and physical medicine and rehab specialists (26%/2,913).
Bruch and colleagues gathered their findings by querying websites for 3 major medical credit card providers—Alphaeon, CareCredit, and Wells Fargo—identifying physician practices accepting them by punching in every U.S. ZIP code. Radiology practices typically contract with these financial institutions, receiving software, training and promotional materials in exchange for paying a processing fee and agreeing to accept the cards.
“While specialties with the highest offer rates provide services less likely to be covered by insurance, we were unable to identify specific services associated with medical credit card use,” the authors concluded. “We were also unable to identify which patients use these cards or whether practices have alternative financing options. As medical debt continues to rise, the impact of medical credit cards on patients’ finances and health should be an area of active research.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.