Embedded Finance Transforming the Health and Medical Industry

Healthcare has undergone a dramatic transformation in recent years, driven by the urgent need to keep pace with an increasingly fast-moving world. With technology leading the way, healthcare providers, insurers, and patients have seen major improvements in how they manage medical needs and financial costs. One major change now taking root is embedded finance. Unlike traditional finance models where consumers need separate interactions with banks or insurance companies, embedded finance integrates financial services directly into healthcare. This means that financial tools—like payment plans, insurance billing, loans, and savings programs—are built into healthcare services from the ground up.

For patients, this means less financial stress and easier access to care. For healthcare providers, embedded finance is a new way to reinvent payments and expand services to more people – here’s how.

Making Healthcare More Affordable and Accessible

Healthcare costs are a major challenge for millions of people. Even with insurance, unexpected medical bills and out-of-pocket costs can add up fast, leading to financial hardship. Embedded finance helps by giving patients more flexible payment options directly at the point of care. For instance, many healthcare providers now offer payment plans integrated right into their systems. Patients can get treated without having to worry about upfront costs, and they can pay in instalments that fit their budget.

Railsr, the UK-based fintech company that provides a white label embedded finance platform, allowing businesses to integrate financial services like digital wallets, payments, and cards into their products, has highlighted the opportunities for embedded solutions in their recent findings. Railsr recognises the opportunity in Healthtech as being one of a number of industry verticals imploding with a demand for back-end embedded finance solutions in partnership  with fintech orchestration companies to greatly enhance the patient experience. 

“Since the pandemic, more people have taken charge of their health, realising the strain on the NHS means they can’t solely rely on government services” says Erica Katsambis VP Partnerships, Railsr. She adds, ‘This has left a huge chunk of the population that are underserved in the health care sector” continuing “providing access to financial products by embedding them directly into healthtech apps is a trend  on the rise. It makes medical services more accessible to the mainstream public. This includes credit products, such as medical credit cards for patients or the ability to more readily offer small to mid-sized lines of credit to consumers accounts to enable them to pay for medical treatments and manage their health challenges instantly, at a time of worry when free services are no longer readily available as they once were.” 

To tackle this challenge, new services and payment options have emerged, including affordable monthly subscription models for online healthcare. These innovations make it easier and faster for patients to access doctors, book a range of assessments, and even complete medical or blood tests from the comfort of their homes—all designed to address everyday health concerns more conveniently.

Imagine a patient undergoing a costly surgery who can choose a low-interest payment plan immediately when signing treatment papers. With embedded financing options, they don’t have to go to a bank or sign up for a new credit card. Instead, these payment options are seamlessly embedded into the institution’s payment system. This convenience not only reduces stress but also encourages patients to seek the care they need without delays due to financial constraints.

Teladoc Health is a company that is taking advantage of this technology. It provides telemedicine services with embedded billing and payment options, allowing patients to pay for consultations within the app or platform. This embedded payment process is also integrated with some insurance providers, reducing out-of-pocket expenses for users.

Building Financial Products That Put Patients First

Embedded finance also makes it easier for healthcare providers to offer specialised financial products that are better suited to patient needs. Unlike traditional bank loans or credit products, which may not consider a patient’s healthcare journey, embedded finance allows for more tailored solutions.

For example, dentists, which often deal with high out-of-pocket expenses for cosmetic and non-covered procedures, can offer financing solutions that work specifically with the practice’s offerings. A patient needing an expensive dental procedure can now secure a loan through a built-in option that offers terms based on healthcare needs rather than generic credit parameters. This kind of customisation is patient-centred, making health financing less intimidating and more accessible.

Healthcare providers can also offer small loans for medical emergencies, giving patients some financial breathing room. This kind of flexibility eases stress and makes it more likely that patients stick to their treatments, leading to better health outcomes.

Simplifying the Insurance Process for Faster Care

Insurance has long been a sticking point in healthcare globally. With traditional insurance models, patients often wait for insurance companies to approve treatments or reimburse expenses, which can cause delays in care. Embedded finance integrates the insurance process directly into healthcare providers’ systems, allowing providers to bill insurance automatically and helping patients know upfront what is covered and what they may need to pay out-of-pocket.

Some providers such as the Cleveland Clinic use embedded verification for remote patient authentication, particularly for telemedicine, ensuring that the patient accessing services is verified for privacy and regulatory compliance. As a result, patients can focus on their treatments rather than on lengthy phone calls or paperwork. These tools also streamline the claim filing process, so providers can get paid faster and patients don’t face unexpected bills months after their treatment.

For example, if a patient comes in for an MRI, the healthcare provider’s system can instantly pull up the insurance details, showing whether it’s covered and what portion the patient needs to pay. This real-time visibility benefits both the patient and the provider, reducing misunderstandings and improving transparency.

GoodRx offers a subscription-based service that gives customers access to discounted rates on prescriptions. Through embedded financing, GoodRx allows users to subscribe to monthly plans to reduce their medication costs. Companies are trusting this technology and are seeing the results in real time.

Driving Innovations in Health Savings Programmes

Embedded finance isn’t just about making payments easier; it also encourages savings for future medical needs. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are increasingly popular, but they can be confusing for users. With embedded finance, these accounts can be integrated directly into healthcare platforms, allowing users to see balances and manage spending directly from their healthcare provider’s app.

Patients can even set up automatic contributions to these accounts from their pay cheque or savings account, making it easier to prepare for future medical expenses. For instance, some health systems have begun to offer incentives for patients who contribute to their HSAs through an embedded platform, such as discounts on services or reduced co-pays. By integrating savings and payment functions, embedded finance encourages more proactive financial planning for healthcare, reducing the burden of unexpected costs.

Enhancing Patient-Provider Relationships with Transparency

When financial options are built directly into healthcare systems, patients know where they stand with costs and financing before agreeing to treatment. This kind of transparency boosts trust between patients and providers, making sure everyone’s on the same page about what treatments will cost and how to manage those expenses.

Take digital cost estimations, for example. Many healthcare providers now offer these upfront, giving patients a clear breakdown of treatment costs, insurance coverage, and available financing options—before they even set foot in the clinic. This approach empowers patients to make informed choices about their care and finances, cuts down on unexpected bills, and helps build strong, trust-based relationships with providers.

The Future of Healthcare with Embedded Finance

Embedded finance is on the rise, and it’s set to make healthcare more patient-friendly, convenient, and accessible. Imagine having more control over your finances, quicker payments for healthcare providers, and insurers dealing with claims minus the usual headaches. The potential here is huge healthcare that’s not only more efficient but also more affordable and easier to access for everyone.

With embedded finance, fewer compromises can be made and the burden on the patient can be lifted with flexible options that don’t penalise them. Accessing quality care is a basic right, and by implementing embedded finance solutions, companies can widen that access and equalise opportunity regardless of what people earn. The future of healthcare in a tech-driven world is exciting, but leaders must be ready to adapt. Don’t hesitate and discover what embedded finance can do for you.

About Philipp Buschmann
Philipp Buschmann is the co-founder and CEO at AAZZUR, a one-stop-shop for smart embedded finance experience. Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy.