Published on 25/06/2024

The advantages of split payments in healthcare | Maintenance

FLOA has established itself as a leading expert across various sectors with its innovative split payment solution. To gain deeper insights into the challenges and realities of each sector, we are launching a series of interviews with FLOA experts. For this first edition, we focus on the healthcare sector, a rapidly evolving market that presents significant strategic growth opportunities for payment in instalments. Hugo Dufrien, Sales Business Developer dedicated to this vertical, shares his analysis and insights with us.

What's your view on payments in instalments in the healthcare sector?

The healthcare sector truly exemplifies the necessity of payment in instalments. According to the 2023 Kantar study¹, 76% of Europeans turn to this solution when faced with unexpected expenses. And what could be more unexpected than healthcare costs?

Whether it's for human or veterinary care, bills can pile up quickly. Out-of-pocket expenses after reimbursements can be especially steep. For many households, covering several hundred euros for glasses, a hearing aid, or dental care can pose a considerable financial strain.

By paying in instalments, you can spread these unexpected expenses over several months.

What are the main trends and challenges in the healthcare sector today?

Healthcare professionals are currently dealing with two major trends that significantly affect their economic model and their patients' financial situations.

First, the government and health insurance providers have been gradually reducing coverage. Reimbursement rates are declining, while out-of-pocket expenses for patients are steadily increasing. For instance, with hearing aids: for a Class II device, Social Security reimburses only 60% of a capped rate of €400 per ear². The remaining cost must be fully covered by the patient or their complementary health insurance. This scenario is also seen in other areas like eyewear and dental care, where paying healthcare bills is becoming increasingly difficult.

At the same time, healthcare professionals have been forced to finance the out-of-pocket costs themselves, offering interest-free payment solutions to their patients. This approach has become unsustainable in the long run.

How is the BNPL³ market evolving in this sector?

In response to these challenges, the healthcare sector is beginning to embrace innovative financing solutions like split payments. However, the market for these options is still relatively immature.

The opportunities, though, are significant. BNPL³ is steadily emerging as a popular alternative.

This trend is driven by a growing demand from patients who want more financing options for their medical expenses. Healthcare professionals, therefore, have a strong incentive to adopt these services to meet their patients' evolving needs.

Following the lead of pioneers like FLOA, which is now available in over 600 veterinary clinics in France, this rapidly expanding market is expected to become increasingly popular in the coming years.

How do FLOA's solutions meet the needs of this market?

To facilitate the transition to split payments within the healthcare sector, FLOA has developed solutions that are perfectly tailored to the industry's challenges. Beyond providing easy-to-use technical solutions and tools for the centralised management of financial flows, FLOA emphasises strong support for healthcare professionals.

Dedicated training programs are offered to new partners to help them integrate and master FLOA's various services. Personalised support is also available for large networks of clinics or healthcare facilities, with enhanced educational components to ensure thorough understanding across all teams.

For patients, FLOA has evolved its solutions to meet their specific needs. Alongside payment in instalments⁵, they have introduced longer-term credit options⁴ (up to 4 years), requiring identification, proof of address, and, for loans over €3,000, proof of income, in compliance with legal requirements.

This comprehensive support enables FLOA to establish itself as a key player in split payments within the healthcare sector

What are your objectives and methods of interaction with stakeholders in the medical sector?

At FLOA, our daily goal is to showcase our industry expertise and understand the specific challenges faced by merchants in different specialties. To achieve this, we engage in regular information monitoring and maintain constant communication with various stakeholders through dedicated events and targeted meetings. Our essential on-the-ground presence is demonstrated by FLOA's booths at major professional conferences, such as those for hearing aid practitioners.

When a new merchant joins FLOA, we offer comprehensive support. This begins with preparing and managing the initial meeting, followed by a detailed needs assessment and an action plan for implementation. This includes deploying training and disseminating solutions within the merchant’s network, leading up to the concrete activation of services.

Our support continues long-term with regular check-ins, performance reviews, and ongoing training webinars. FLOA also provides a telephone support service available from Monday to Saturday to answer any questions merchants may have.

Our aim is to thoroughly understand the needs of the sector to develop our solutions and optimise access to split payment options, which is crucial for making healthcare more accessible for patients.

Are you a healthcare provider? JLIB_HTML_CLOAKING, our dedicated expert, is available to assist you in adopting split payment solutions. Enhance your patients' payment experience by contacting us today!

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