top of page
Writer's pictureLACMA Staff

Is Financial Toxicity a Factor in Patient Health Outcomes?

Updated: Sep 30

Physicians and healthcare providers often witness patients grappling with the overwhelming financial burden of medical care. While health insurance can cover some costs, many individuals still face substantial out-of-pocket expenses such as copayments, deductibles, and coinsurance. Additionally, indirect costs like travel, meals, lodging, and lost income from time off work add to the financial strain. This cumulative burden, known as “financial toxicity,” has become a significant factor affecting both patient health outcomes and equity in care access.


Understanding Financial Toxicity


Financial toxicity is the negative impact of healthcare costs on a patient’s well-being. For many, managing out-of-pocket expenses is a significant source of stress, which in turn can lead to worsened health outcomes. Financial toxicity involves both material deprivation, where patients may lack access to necessary resources, and psychological distress, which has been linked to increased healthcare utilization and poorer health.


One glaring example is oncology, where cancer patients often face a high financial burden. Studies show that severe financial distress after a cancer diagnosis can increase mortality risk by 80% in patients with colon and prostate cancer. Furthermore, cancer patients are more than twice as likely to declare bankruptcy compared to the general population. This burden extends into survivorship, as many cancer survivors continue to face high out-of-pocket costs, exceeding 20% of their annual income.


Financial Toxicity Beyond Cancer


While cancer is commonly associated with financial toxicity, other chronic diseases also pose significant financial challenges. For example, atherosclerotic cardiovascular disease (ASCVD) affects 54% of adults with the condition, compared to 41% of cancer patients. Individuals with ASCVD are 22% more likely to struggle with medical bills, and they have higher odds of medication non-adherence, delayed care, food insecurity, and overall financial strain.


Similarly, diabetes and kidney disease are associated with financial hardship, which can lead to medication underuse and poorer disease management. Financial stress has a stronger link to poor glycemic control in diabetes than other psychosocial factors, and it increases the likelihood of developing costly complications like diabetic kidney disease.


Addressing Financial Toxicity


Healthcare providers have a crucial role to play in mitigating the effects of financial toxicity. While employers offer health insurance to safeguard against medical expenses, many employees are still exposed to high costs due to high-deductible health plans. Physicians can help by incorporating discussions about financial stress into care plans and by connecting patients with resources to manage their costs.


Tools like healthcare navigators can offer critical support by comparing procedure costs, reviewing bills, and negotiating with providers. Additionally, nonprofit hospitals are required to offer financial assistance, though many patients remain unaware of these programs.


Addressing financial toxicity won’t eliminate all the challenges of high healthcare costs, but it can significantly reduce the burden on patients, enabling them to focus more on their health and less on their finances. Recognizing and addressing this issue is a vital step toward improving health outcomes and equity in care.


31 views0 comments

Comments


bottom of page