Banking on Health: Strategic Collaborations to Alleviate Medical Debt

The healthcare industry is experiencing a major cash flow problem: patient deductibles, intended to force patients to have a vested interest in the cost of their healthcare. Consequently, patients are reliant on credit cards or predatory lenders to cover their medical expenses. According to the Kaiser Family Foundation (KFF), nearly 42% of all adults in the US, 100 million Americans, currently face medical debt.

 

Meanwhile, bankers have identified increasing deposits as their top business priority for 2024, yet many are experiencing challenges in securing new customer relationships here. This paradigm presents a unique opportunity for local healthcare providers and financial institution leaders to forge collaborative partnerships and address the challenges faced by both.

 

The Value of Banker / Healthcare Collaboration

 

Collaboration between bankers and local healthcare providers offers a significant value opportunity to responsibly address patient deductible affordability. By joining forces, these stakeholders can develop innovative financial solutions that alleviate the burden of medical expenses without forcing patients to resort to high-interest debt. Bankers bring expertise in financial products and risk management, enabling customized financing options that suit varying financial circumstances. Meanwhile, local healthcare providers possess deep insights into patient needs and medical billing intricacies, ensuring solutions are both practical and patient-centric.

 

Financial institutions (FIs) can unlock new revenue streams and cultivate deposit relationships, while hospitals can offer patients affordable, long-term payment plans to enhance financial accessibility and reduce nonpayment risks. This partnership alignment allows community FIs to contribute to greater healthcare affordability and financial empowerment, while also promoting sustainable income growth. Working together, bankers and healthcare providers can create a more supportive financial environment for patients, fostering both community health and economic stability.

 

The Growth Potential of FI-Healthcare Collaborations

 

The growth potential of banker and healthcare provider collaboration extends far beyond immediate financial benefits. FIs can drive significant advancements in patient satisfaction by embedding financial services into the healthcare experience. Access to affordable credit can lead to better health outcomes as patients are more likely to seek timely medical attention without fear of financial strain. This proactive approach to healthcare financing fosters stronger patient loyalty and trust, while also creating new banking relationships.


As FIs and healthcare providers work together, they can spur innovation through new financial products and services specifically tailored to the healthcare industry. By continuously evolving and adapting to community needs, these partnerships can drive long-term growth and sustainability for both sectors, ultimately benefiting patients, providers, and FIs alike.

Creating Meaningful Change for Patients and Communities

Flexible repayment options and low-fixed interest rates empower patients to manage medical expenses without jeopardizing their financial stability or accumulating excessive debt. Removing financial barriers to essential healthcare services not only contributes to improved health outcomes but also reduces long-term treatment costs.

Healthcare providers, as major employers and essential community businesses, serve as economic anchors within their communities. Reducing medical debt collections ensures these organizations’ financial sustainability and enhances overall community resilience. By collaborating to increase healthcare affordability, both institutions foster stronger relationships with patients and demonstrate a steadfast commitment to supporting the community’s welfare.

Looking Ahead

 

As consumers, healthcare systems and communities grapple with the challenges of ever-increasing patient deductibles, community banks and credit unions are uniquely positioned to drive positive change. Together, community FIs and healthcare providers can combat unaffordable healthcare costs and financial instability through patient-friendly lending solutions. This collaborative approach enables community FIs to drive sustainable revenue growth by capturing more deposits while elevating the financial well-being of their communities and strengthening their role as trusted financial partners.

 

About Jeff Grobaski, Founder and CEO, Epic River

Jeff Grobaski is the founder and CEO of Epic River, a lending-as-a-service platform provider that connects banks and credit unions with healthcare providers to streamline patient payments.  Their unique offering allows providers to offload nonpayment risk by partnering with banks and credit unions to create low-interest patient loan agreements. As CEO, Grobaski draws on more than 20 years of experience in software development and product management.


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