How Accepting HSA and FSA Payments Can Grow Your Practice Revenue
Oct 08, 2026
At Tru Medical Management, led by Dr. Hari Polavarapu, MD, we are committed to delivering exceptional primary care across our two offices in Brooklyn, New York. As a dedicated team of nine healthcare providers, we continuously look for ways to make high-quality medical services more accessible to our community.
One of the most effective strategies we use to achieve this is accepting Health Savings Account (HSA) and Flexible Spending Account (FSA) payments. By allowing patients to use these pre-tax accounts, we help them manage their out-of-pocket costs while stabilizing our own business operations. Here is a closer look at how accepting HSA and FSA payments can grow your practice revenue while improving patient care.
Accepting HSA and FSA payments directly drives practice growth by unlocking a dedicated pool of pre-tax patient capital that is specifically set aside for healthcare expenses. When patients know they can use their tax-advantaged accounts, they are far more likely to schedule appointments and follow through with recommended treatments. This behavioral shift is backed by clear economic data.
A 2024 study analyzing national healthcare expenditures found that holding an HSA is associated with a 44% relative increase in out-of-pocket spending (an absolute average increase of $697 per year) compared to families without these accounts. Additionally, FSA holders showed a 20% relative increase in total annual healthcare spending, representing an average increase of $2,033 per year. By seamlessly accepting these payment methods, we make it easier for patients to invest in their health, which naturally increases our practice's point-of-service revenue.
Upfront financial liquidity improves patient adherence by removing the immediate out-of-pocket cost barriers that often cause people to delay necessary medical care. When patients have pre-funded accounts like HSAs or FSAs, they don't have to choose between their personal budgets and essential outpatient services. It's a financial peace of mind that has a direct impact on clinical outcomes and healthcare utilization.
A 2024 randomized controlled trial demonstrated that providing individuals with upfront financial liquidity resulted in a significant absolute reduction of 87.0 emergency department visits per 1,000 persons. At the same time, it led to a substantial increase in the utilization of preventative outpatient care. By encouraging patients to use their HSA and FSA funds for routine preventive care and chronic care management, we help them avoid emergency situations while securing steady, predictable revenue for our clinics.
Accepting pre-tax payments helps offset macroeconomic challenges by ensuring immediate, reliable collections at the point of service during times of high inflation and declining insurance reimbursements. This steady cash flow is vital for maintaining practice solvency in a difficult economic climate.
According to a report by the American Hospital Association (2025), healthcare providers are facing severe financial pressure due to rising operational costs and billions of dollars in government underpayments. When traditional insurance reimbursements don't keep pace with inflation, capturing patient out-of-pocket balances becomes essential. Accepting HSA and FSA cards allows us to collect these balances immediately at check-in, reducing the administrative burden of mailing paper bills and minimizing unpaid accounts.
At Tru Medical Management, we believe that financial convenience is a key part of patient-centered care. If you want to utilize your pre-tax healthcare dollars for your next visit, we are here to help. Please contact our team today to schedule your next appointment at one of our Brooklyn offices.