Becker's ASC Review

22 Executive Briefing For more than 30 years, CareCredit has provided a valuable financing option for treatments and procedures insurance typically doesn't cover, either in part or in full. Cardholders can also use the CareCredit health, wellness and personal care credit card to pay for deductibles, co- payments and other out-of-pocket costs. Providers who accept CareCredit receive payment in two business days. https://www.carecredit.com/ 1 CareCredit Generational Health Research Study, Q3 2018. 2 CareCredit: Understanding Generation Z, Q1 2018 Generational differences go beyond technology as well. • Boomers are more likely than other generations to consider personal health important. This holds true for all aspects of health, including physical, mental, emotional, spiritual, and financial. 1 • Generation X patients tend to value input from family and friends more than other generations when deciding whether or not to make a doctor appointment, though they also place great importance on recommendations from doctors. 1 • Millennials are more likely to pay with a debit card or cash, while older generations pay more often with credit cards. Millennials are also more likely to have additional spending or savings accounts for healthcare purchases, such as an HSA, FSA, HRA, or HIA. 1 • Gen Z (the youngest and one of the largest cohorts of consumers) are shifting away from traditional payment methods. In one study, fewer than half of Gen Z respondents reported having a credit card (43 percent), checking account (42 percent), or savings account (39 percent), but 61 percent said they use PayPal, and 21 percent used peer-to-peer payment apps like Venmo and Cash App. 2 Confusion and costs in common One area where there seems to be agreement across the generations is struggling with the complexity of the healthcare system. According to our research, the top four sources of confusion are the same for all four groups: coverage, insurance plan options, cost, and billing. Among those topics, we do see some variation by generation, however. For instance, while insurance coverage is the biggest question mark for everyone, it's especially concerning for Gen X — 35 percent of our survey participants cited it as their biggest source of confusion or difficulty. More than a quarter of Baby Boomers chose insurance plan options as the most confusing aspect of healthcare, but just 10 percent named cost as their top challenge, likely reflecting the experience of transitioning to Medicare. For Millennials, cost is a bigger concern, presumably due to significant out-of-pocket expenses, an earlier career phase, and life events like marriage and children. In terms of healthcare spending, rising costs are affecting members of all generations. Both premiums and deductibles have risen significantly in recent years, and one analysis released in mid-2018 projected that consumer out-of-pocket healthcare spending would reach $608 billion in 2019, an increase of more than 46 percent since 2014. In light of this, it's no surprise that we're seeing such a shift toward healthcare consumerism, with patients wanting more clarity and control related to their healthcare investments. They may expect things like transparent pricing, clear financial policies, on-demand access to account details, more information available via more channels, and options for how and when to make payments. This last point may be especially important for patients for whom large medical bills would represent a significant hardship, such as the 40 percent of Americans who report being unable to cover an unexpected expense of $400, or needing to borrow money or sell possessions to do so. Caring for patients of multiple generations It can be very helpful for providers in an ASC environment to have an awareness of generational differences, but it's important not to overemphasize them. No matter what a patient's background, the key is earning his or her trust, especially in the context of surgery, which may be a new, intimidating and disruptive experience for many patients, even in an outpatient scenario. While acknowledging personal preferences and tailoring one's approach can help establish rapport, communicating clearly and honestly matters even more. Offering solutions like new payment options, or a range of ways to exchange information (such as text, email, and online chat in addition to phone calls) can help attract and keep younger generations (and potentially older ones as well). But innovation alone isn't enough. Regardless of the communication channel — and traditional channels like phone, mail, and print materials are likely always to play a role — it's important to be transparent, empathetic, committed, and responsive. Patients of all generations have a fundamental need to be heard and understood — and to know that providers are able and willing to help them. n "Patients of all generations have a fundamental need to be heard and understood — and to know that providers are able and willing to help them." - Tim Donovan, CMO, CareCredit

• Cover