Leveraging the Existing US Healthcare Structure for Consumer Financial Well‐Being: Barriers, Opportunities, and a Framework toward Future Research

Abstract

Healthcare exchange often contains peril for consumers because of numerous barriers to financial well‐being (FWB). Rather than ruing specific agendas of healthcare policy, we embrace a neutral and immediately actionable approach. The authors promote gains in healthcare's current composition by empowering consumers to be proactive, where possible, in reducing power inequities and improving their own FWB. As such, the authors identify primary barriers to the FWB of healthcare consumers and propose individual opportunities within the existing healthcare structure that are likely to improve fiscal outcomes. Moreover, the current research demonstrates collaborative paths wherein power‐holders (i.e., practitioner, researcher, consumer, government) can collaborate toward and/or contribute to the same financial health. A proposed theoretical framework, with foundations of power‐responsibility equilibrium and transformative service research, gives rise to future research directions. This research is intended to provide a foundation for healthcare and FWB thought/action, and to guide coming scholarly offerings.

Consumer’s subjective financial well‐being: A systematic review and research agenda

“…Multiple stakeholders influence the consumers’ financial products purchase decision‐making process, as consumers lack the experience and skills to deal with complex subjects like finance (Alsemgeest, 2015; Dorsey et al., 2019; Hira, 2012). Banks and other FIs, third‐party agencies (credit counseling, debt management, and financial literacy service providers), businesses, and consumers (individual differences) have become essential stakeholders in this process.…”

“…Prior researchers have published seven conceptual articles and three literature review articles on this topic. Two articles have covered the specific domain‐related dimensions of FWB, including mortgage servicing (Bone, 2008) and the U.S. healthcare framework (Dorsey et al., 2019). Bone’s (2008) conceptual article offered several testable hypotheses in the mortgage servicing area of consumer financial welfare (i.e., the maximum benefit of the dollar spent, minimal time and opportunity costs, and satisfaction).…”

“…These hypotheses explore the consumer's empowerment and its link to identifying and resolving service providers' predatory behavior. Suggesting barriers and opportunities within the existing U.S. healthcare framework, Dorsey et al (2019) provided an integrative framework for the various types of service providers in addition to payment intermediaries and consumers, linking the various concepts to FWB outcomes. Two conceptual articles and one review article have looked at the relationship between financial literacy and FWB (Alsemgeest, 2015;Goyal & Kumar, 2021;Hira, 2012).…”

Theoretical underpinnings of consumers’ financial capability research

“…(2017) defined financial well‐being as the ability to achieve and obtain desired standards of living and reach financial freedom. In the context of performance, financial well‐being is defined as success in money management (Dorsey et al., 2020; Greninger et al., 1996), and is determined by objective and subjective financial measures (Mahendru et al., 2020). Finally, financial well‐being represents an assessment of an individual's financial situation (Shim et al., 2009).…”

Rethinking scarcity and poverty: Building bridges for shared insight and impact

“…As a central construct in poverty work, it reflects “essential goods and services that must be acquired before citizens within a nation can rise above a short‐term focus on continued existence” (Hill, 2005, p. 217). Here, the adequacy baseline reflects a person's ability to consume vital resources or “global public goods” (Nussbaum, 2000), for example, healthy food and water (Grier & Davis, 2013), safe shelter (Motley & Perry, 2013; Perry, 2019), sufficient clothing, health care (Dorsey et al, 2020), and personal growth through education and jobs (Viswanathan et al, 2010).…”