Concierge medicine is a membership-based approach to practicing medicine that can have significant benefits for medical practices scenarios. It offers patients expanded, expedited, and more personalized primary care, and gives physicians more time to collaborate with patients. A hybrid approach to “membership medicine” can help medical practices and physicians address challenges related to creating new or additional revenue streams. Concierge medicine can also benefit practitioners looking for a lifestyle change, as well as medical practices seeking to improve physician retention.
- Concierge medicine programs can significantly impact revenue stream even for traditional medical practices by generating recurring monthly subscription revenue. Just as with the cost of any monthly subscription model, concierge medicine models rely on market conditions to dictate the price point. Prices are based on: (a) supply and demand in the geographical region, (b) the patient population, (c) the nature of the current practice, and (d) the culture of the practice. For example, a physician practice or provider that offers a hybrid concierge medicine program to one hundred members and charges each member a $200 monthly fee, can generate $240,000 annually, separate from any third-party payors. Pricing errors or overestimating the market are common mistakes.
- Concierge medicine can be critical to physician retention and recruitment. The flexibility of concierge models can help organizations counter physician burnout, which is due in part to demanding fee-for-service environments that incentivize physicians to see high volumes of patients. Giving physicians flexibility over the pace of their practice can improve physician satisfaction thereby increasing the retention of senior physicians while assisting with the recruitment of new physicians. Physicians must clearly communicate the scope of services covered by the concierge program to avoid regulatory compliance and legal issues.
- Concierge medicine models can also be an attractive service option within traditional medical practices. When structured correctly, concierge medicine models complement, rather than oppose traditional practice models. Productivity levels and patient outcomes often improve over time because physicians spend more time with patients. Physicians and medical practices must be proactive about seeking guidance when it comes to integrating concierge medicine. Concierge medicine models are most effective when properly structured well in advance of implementation.
While concierge medicine part can be great way for physicians that want to scale back their practice or just generate more revenue, it is far from perfect. The reality is that certain markets and physician specialties are better suited for concierge medicine than others. However, the most important factor for any physician or medical practice looking to implement a concierge medicine program is to work closely with a healthcare attorney, who is familiar with the nuanced regulatory hurdles and compliance risks involved.
If you believe your medical practice and patients could benefit from a concierge medicine program, please reach out to one of our experienced healthcare attorneys to discuss.
