Healthcare costs keep rising, and both patients and healthcare providers are feeling the impact. Higher deductibles, co-pays, and out-of-pocket payments make it harder for patients to move forward with care — and for practices, unpredictable reimbursement and cash flow add even more pressure.

As more costs shift onto patients, many are delaying or declining the care they need simply because the upfront expense feels unmanageable. Practices see this every day in stalled treatment plans, slower scheduling, and growing financial strain on both sides.

This environment has made clear, flexible payment options not just helpful, but essential for keeping quality care accessible across a range of health services, boosting patient outcomes, and supporting practice stability.

What is Healthcare Financing?

Healthcare financing describes the process of paying for medical care. This can be through insurance plans, BNPL installment plans, medical loans, or tools like HSAs and FSAs. At its heart, it’s about giving patients affordable options and giving practices a predictable path to getting reimbursed.

It also plays a role at the system level. Decisions about financing influence how funding gets allocated, how healthcare systems manage rising expenditure, and which interventions improve overall health outcomes. Policies and public expenditures by the federal government shape these systems, but for most practices and patients, healthcare financing ultimately comes down to having flexible, reliable options that make care accessible.

12 Top Healthcare Financing Options

1. Buy Now, Pay Later (BNPL) for Healthcare

BNPL services, originally popularized by companies like Affirm and Afterpay, are now widely used in healthcare to help patients break larger treatment costs into smaller, predictable payments. Instead of paying everything up front, patients can split their bill into more manageable installments.

Unlike many traditional medical or personal loans, where funds are deposited into the borrower’s savings or checking account rather than paid directly to the provider, BNPL programs typically issue upfront payment to the practice, eliminating reimbursement delays and reducing collection risk.

With Cherry Payment Plans, patients can apply for loans up to $65,000 in less than 35 seconds without hurting their credit score. If approved, they can choose from biweekly (Pay in 4) or monthly installments (up to 60 months), with short-term interest-free options and qualifying 0% APR (annual percentage rate) for longer-term monthly plans.

Unlike other lenders, Cherry offers ~90% approval rates across a wide range of credit backgrounds, doesn’t use hard credit checks, never charges deferred interest or prepayment penalties, and offers the industry’s lowest merchant fees.

Pros

• Fast credit approval process
• True 0% APR options
• Soft credit check, which doesn’t hurt patient credit score
• Upfront payment for practices so they bear no financial risk
• A patient-friendly alternative to high-interest credit cards or medical debt
• Flexible terms that make larger treatments feel more accessible

Cons

• Late fees or simple interest may apply if payments are missed
• Only available through participating providers
• Missed payments can impact a patient’s credit

Tip: Approvals are often instant, and some platforms, like Cherry, avoid hard credit pulls, allowing patients to compare loan offers without hurting their credit report. On-time payments can even help strengthen a patient’s credit profile, which isn’t always possible with other financing options.

2. Medical Loans

Medical loans are like personal loans, but they’re designed specifically for healthcare-related expenses. They’re ideal for patients facing larger healthcare bills because they have higher loan limits, long terms, and predictable installments.

While medical loans function much like personal loans, lenders usually present the terms clearly and focus on repayment timelines in the context of treatment to help patients plan for the cost of care. This makes medical loans a strong choice for major procedures like dental implants, LASIK, or fertility treatments.

Pros

• Better for high-cost procedures
• Clear loan repayment terms
• Usually uses fixed rates
• Larger loan amounts available
• Quick access to loan funds

Cons

• Approval depends on creditworthiness
• Interest rates vary
• May include origination fees

Tip: Encourage patients to compare multiple lenders to find the lowest APR and best repayment schedule.

3. In-House Payment Plans

In-house payment plans let practices offer patients simple monthly installments without involving a third-party lender. They work well for smaller balances or ongoing treatment because they’re flexible and easy for patients to understand.

The downside, however, is that the practice has to handle billing and follow-up (including debt collection), and they take on risk if the patient defaults. Other financing options, like BNPL programs for example, pay practices upfront to offload the risk and administrative burden.

Pros

• Practices control the structure
• Easy for patients to understand
• Can improve treatment acceptance for smaller procedures

Cons

• Practice carries the financial risk
• Can strain cash flow
• Requires administrative tracking

Tip: Limit in-house plans to smaller amounts and set clear expectations upfront to protect your practice financially.

4. Health Savings Accounts (HSAs)

HSAs allow patients with high-deductible health plans to use pre-tax dollars to pay for medical expenses. Funds roll over annually, and unused balances can be invested, making HSAs a powerful long-term medical financing tool. They are especially helpful for elective procedures that patients can plan for.

Pros

• Pre-tax savings reduce overall healthcare costs
• Funds roll over and can grow
• Ideal for planned or elective care

Cons

• Only available with high-deductible plans
• Patients must have funds saved
• Limited to eligible expenses

Tip: Remind patients to plan major procedures around their HSA contributions to maximize savings.

5. Flexible Spending Accounts (FSAs)

Unlike an HSA, which lets patients save and roll over funds year after year, an FSA works more like a “use-it-or-lose-it” account. FSAs enable patients to set aside pre-tax money for healthcare expenses, but most plans require those funds to be spent within the same plan year.

They’re especially helpful for predictable medical costs like dental work, vision care, or recurring treatments. By using pre-tax dollars, FSAs help patients lower their taxable income while making everyday healthcare needs more affordable.

Pros

• Pre-tax savings
• Great for predictable expenses
• Easy reimbursement process

Cons

• “Use it or lose it” structure
• Contribution limits apply
• Not all medical services qualify

Tip: Encourage patients to schedule elective procedures early in the year to ensure they use their FSA funds.

6. HRAs & MERPs (Employer Reimbursement Models)

HRAs and MERPs allow employers to reimburse employees for medical expenses or insurance premiums using employer-funded, tax-advantaged dollars. These models are gaining popularity among small employers who want to offer affordable health benefits without traditional insurance structures.

Patients can use reimbursement funds to reduce out-of-pocket costs for a wide range of qualified medical expenses including primary care, specialty treatments, and certain elective procedures depending on how their employer’s HRA or MERP is structured.

Pros

• Employer-funded
• Tax-advantaged reimbursement
• Helps cover out-of-pocket costs

Cons

• Not available to all employees
• Employers control limits
• Eligibility varies by plan

Tip: Ask patients whether their employer offers an HRA or MERP. Many don’t realize they have reimbursement dollars available.

7. Medical Credit Cards

Medical credit cards give patients a reusable line of credit for healthcare expenses and are often used for smaller repeat treatments. They typically offer promotional interest-free periods, but those terms require the full balance to be paid off on time, every month, to avoid deferred interest. If even one payment is missed, it can trigger retroactive interest at a high APR.

Approval depends on credit history, which can limit access for some patients compared to more flexible medical financing programs. They work best for patients with strong credit who want predictable short-term repayment options.

Pros

• Quick approval
• Promotional 0% interest periods
• Reusable credit line for future visits

Cons

• Deferred interest if not paid on time
• Requires a hard credit check for full application
• Requires stronger credit for approval
• Not ideal for high treatment costs

Tip: Encourage patients to set up automatic payments to avoid losing promotional benefits.

8. Personal Loans

Personal loans give patients a lump sum they can use across several healthcare needs like specialist visits, diagnostics, or even medical equipment like CPAP machines. They’re especially useful for patients with multiple providers or complex treatment plans. Because they are not healthcare-specific, personal loan terms can vary widely, meaning patients should compare multiple lenders.

Pros

• Flexible use across healthcare needs
• Good for consolidating medical bills
• Usually offer fixed interest rates

Cons

• Lowest rates available to the most creditworthy borrowers
• Not tailored to medical billing
• May take longer to process
• Funds disbursed to borrower, not the practice

Tip: Suggest that patients compare APRs from banks, credit unions, and online lenders to secure the best deal.

9. Negotiated Payments & Cash-Pay Discounts

Many practices are willing to negotiate pricing for patients experiencing hardship or offer discounts for upfront payment. These options improve affordability for uninsured patients and streamline practice operations by eliminating claims processing. Negotiated discounts work best for practices with high self-pay volumes.

Pros

• Immediate savings for patients
• No credit check
• Simplifies healthcare payments

Cons

• Reduces practice revenue
• Not suitable for all balances
• Requires clear communication

Tip: Offer discounts strategically for self-pay patients or procedures with significant out-of-pocket costs.

10. Charity Care & Financial Assistance Programs

Some healthcare organizations, like the HealthWell Foundation, provide charity care or financial assistance to patients facing financial hardship. These programs help ensure essential services remain accessible to vulnerable populations. Charity care is especially valuable in community health settings.

Pros

• Reduces financial hardship
• Supports underserved populations
• Improves access to essential care

Cons

• Limited availability
• Strict eligibility rules
• Not applicable to elective procedures

Tip: Make eligibility criteria clear and easy to find — patients often don’t realize these programs exist.

11. Private Health Insurance

Private insurance covers a large share of healthcare services but still leaves patients with deductibles, co-pays, and uncovered procedures. Financing companies help fill these gaps, support better healthcare delivery systems, and provide patients with more predictable costs. For practices, understanding insurance limitations helps them recommend financing proactively.

Pros

• Essential coverage for most patients
• Reduces major financial risk
• Covers preventative care

Cons

• High deductibles
• Limited elective-care coverage
• Complex reimbursement systems

Tip: Clarify coverage early and help patients understand where financing can support their out-of-pocket needs.

12. Medicare & Medicaid

In the health sector, Medicare and Medicaid provide critical public financing for seniors, people with disabilities, and low-income patients. These programs reduce health disparities and support access to essential care for vulnerable populations, with each beneficiary receiving coverage based on eligibility and program guidelines. However, they rarely cover elective procedures and may still require supplemental financing.

Pros

• Essential public health coverage
• Predictable reimbursement
• Reduces national medical debt

Cons

• Slow reimbursement timelines
• Limited elective-care coverage
• Strict eligibility requirements

Tip: Help patients understand what is and isn’t covered so they can plan supplemental financing early.

How Practices Can Help Patients Choose the Right Financing Option

Helping patients choose the right health financing option starts with understanding their health needs, clarifying affordability, and making the process feel simple. When practices guide patients clearly, it strengthens patient care, improves outcomes, and supports the financial health of the practice.

1. Start with the Patient’s Goals and Health Needs

Patients value different things — some prioritize the lowest overall pricing, while others want predictable monthly payments or flexible financing for larger healthcare expenses. A few targeted questions can quickly surface what matters most.

Consider asking:

• What procedure do you need, and how soon?
• Are you planning multiple visits or one major treatment?
• Do you prefer lower monthly payments or a shorter repayment term?

These questions make healthcare costs feel more manageable and help patients choose an option that fits their life and health needs.

2. Compare Affordability and Repayment Terms Side by Side

Patients rarely understand the differences between sources of funding without guidance. Breaking down the contrasts helps them make informed decisions.

Highlight simple comparisons such as:

• Installments vs. lines of credit
• Short-term interest-free plans vs. longer-term loan options
• Longer terms vs. lowest total cost
• Modern financing solutions vs. traditional payment options

When practices frame this information in everyday language, patients feel more confident and less overwhelmed.

3. Understand the Patient’s Insurance Situation

Insurance plays a major role in how patients evaluate financing, and many don’t fully understand their health plans. A quick explanation of what their insurance covers — and what it doesn’t — can significantly reduce stress.

High-deductible plans may pair well with HSAs or structured installments, while self-pay patients often need clearer pricing and more flexible financing. Some payers leave coverage gaps that financing services can bridge, helping patients avoid delays in essential care.

By connecting financing options to the patient’s specific insurance situation, practices improve the overall patient experience and help patients move forward sooner.

4. Make Financing Easy to Understand and Easy to Accept

Financing works best when it feels simple and supportive. Introducing payment options early in the conversation (instead of after you’ve presented the price) helps patients view financing as a normal part of modern patient care.

Some practices use a visual comparison tool or quick calculator to show monthly payment options, while others walk patients through the loan application process directly. Clear explanations of repayment terms, affordability, and timelines go a long way toward reducing hesitation.

When financing feels easy to understand, patients are far more likely to move forward with recommended treatment and feel confident in their decision.

Offer Flexible Healthcare Financing with Cherry

From BNPL programs to medical loans, tax-advantaged accounts to crowdfunding, not all funding sources are created equal. Patient needs, credit background, income, and timing all influence which option works best — and practices need solutions that support a wide range of people, not just prime borrowers.

Cherry makes this easier. With approval rates up to 90%, flexible terms (1-60 months), loan amounts up to $65,000, and true 0% APR options, Cherry helps more patients access the care they need. Applications take under a minute, and most practices can begin offering Cherry the same day.

Your practice gets paid upfront. Cherry’s dedicated lending team handles the rest. It’s one of the simplest ways to increase treatment acceptance and reduce financial barriers.

Read our case studies to see why over 60,000 providers offer Cherry first among its competitors. And book your free demo today to learn how offering patient financing can transform your business.