Fintech’s Role in Solving Healthcare’s Affordability Crisis

A young couple walks into a fertility clinic. They have been trying to conceive for two years. The doctor lays out a potential treatment plan. The cost: $15,000. Insurance covers nothing. They walk out without scheduling the first appointment.

This scene plays out thousands of times daily across specialties insurers deem “elective.” The label suggests optional luxury. Yet, these “luxury treatments” can include fertility treatments, dental implants, medical procedures addressing chronic pain, among others. The reality is that people often forego these care types they desperately need because they cannot afford them.

Healthcare providers face the mirror problem. Patient balances now represent over 30% of revenue, yet providers collect only 20%-30% of what patients owe. Traditional 12-month payment plans fall short. Medical credit cards trap patients with deferred interest, and the gap continues to widen.

Financial technology companies have noticed. Since 2020, more than $53 billion has flowed into healthcare fintech. These platforms bring extended payment terms, AI-powered approvals, and zero-interest options into healthcare settings that have relied on outdated payment models for decades.

But can fintech truly solve an affordability crisis, or is it only providing a temporary workaround that doesn’t address the underlying causes?

Why the crisis is accelerating now

The affordability crisis stems from converging forces: rising healthcare costs aligning with declining household financial capacity.

Hospital consolidation drives the problem. Ninety percent of hospital markets are now highly concentrated. Research shows consolidation increases prices 20%-40%. These high hospital prices are now driving up insurance premiums.

Insurance companies have responded by shifting risk onto patients. High-deductible plans have become the norm. Even insured patients struggle. Forty-four percent say healthcare costs are difficult to afford. One in four adults had problems paying for care in the past year alone.

Meanwhile, advances in medical technology carry steep price tags. Equipment costs climb. New treatments cost more to deliver. From 2000 to 2024, medical care prices increased 40% faster than everyday expenses. Post-pandemic inflation will add $370 billion in healthcare costs by 2027.

Households cannot keep up with the burden falling heaviest on lower-income families. Among those earning under $24,000 annually, 64% cannot afford healthcare. For households earning $24,000-$48,000, the figure stands at 57%. Racial disparities compound the crisis, with more than half of Hispanic Americans and nearly half of Black Americans reporting an inability to afford care.

The consequences are immediate. Thirty-six percent of adults skipped or postponed needed healthcare in the past year due to cost, while 21% didn’t fill a prescription for that same reason. These decisions lead to worse outcomes and higher costs when conditions become acute.

Enter fintech solutions

Traditional payment options have not solved the problem. Healthcare providers offered in-house payment plans capped at 12 months. Patients turned to high interest rate credit cards or personal loans with rigid terms. Medical credit cards like CareCredit provided another option, but often with deferred interest traps that could retroactively apply 20%-plus rates if balances were not paid within promotional periods.

These solutions shared a common flaw: one-size-fits-all approaches that failed to account for the highly individualized nature of healthcare and the diverse financial circumstances of each individual.

Financial technology platforms operate differently. They automate the entire process through digital applications that provide near-instant decisions. Artificial intelligence (AI) analyzes patient financial data to create customized payment plans rather than offering a single rigid option. Terms extend from 12 months to 72 months, allowing patients to choose what fits their budget. Many platforms offer zero-interest financing, generating revenue through provider fees rather than patient interest charges.

The model creates advantages on both sides. Providers receive payment in full upfront, improving cash flow and eliminating the administrative burden of chasing delayed payments over months. Patients gain flexibility and transparency, knowing exactly what their monthly payment will be before committing to treatment.

Making it work

Provider adoption is growing but uneven. Fertility clinics, dental practices, and medical spas moved first — specialties where patients routinely pay out-of-pocket. Traditional hospital systems are following as self-pay balances climb. Rural providers face particular urgency, with roughly 700 hospitals at risk of closure due to unmanageable costs.

Most platforms integrate with existing systems through APIs. Implementation takes weeks, not months. The heavier lift is cultural, with training staff expected to discuss financing upfront rather than after treatment.

The next evolution involves collaboration. Fintechs could partner with insurers and employer wellness programs to create custom solutions for procedures insurance does not cover. An employer might subsidize fertility treatments, while an insurer might offer extended terms for preventative procedures, avoiding costlier interventions later.

The ethical question

Making healthcare easier to finance does not address why it costs so much. Hospital consolidation drives prices up. Insurance shifts risk onto patients. Financing helps people access care today but does nothing to fix the system generating unaffordable bills.

The alternative is worse. Without financing, patients delay care until conditions worsen. Medical debt already totals $220 billion. Structured payment plans at least offer transparency and manageable terms rather than collections agencies and damaged credit.

The tension is real. These tools address an immediate crisis but risk normalizing a system where Americans routinely finance basic healthcare.

What comes next

A cultural shift is emerging. People increasingly view healthcare spending proactively, investing in treatments now to avoid bigger problems later. Patient financing removes the barrier of large upfront costs, supporting such a mindset.

Fintech alone will not solve healthcare’s affordability crisis. Hospital consolidation must be addressed. Insurance models need reform. But while policymakers debate systemic solutions, 91 million Americans cannot afford care today.

The young couple from the fertility clinic deserves a chance to become parents. The question is not whether to embrace financial technology in healthcare. It’s whether providers will move fast enough to help the millions who cannot afford to wait.