It is being called “concierge medicine,” as physicians begin to treat patients on a cash-only basis. As the healthcare reform continues to struggle onto its feet, the red-tape involved in negotiations between doctors’ offices and a plethora of differing insurance companies has caused many physicians frustration. In an attempt to see more and more patients to cover increasing costs, including a larger billing staff to work with insurance providers, doctors are losing valuable time with the patients they already treat. This has caused a growing number of doctors and patients to turn to a cash-only system through direct primary care options.
One such family doctor from Wichita, Doug Nunamaker started a “membership-based practice called Atlas M.D,” reports CNN Money. Through this style of primary care, patients pay a monthly fee for access to a group of quality healthcare providers and services.
With deals for services negotiated outside his office, Nunamaker can charge $3 for a cholesterol test “versus the $90 the lab company he works with once billed to insurance carriers.”
Better for Doctors and Patients
And because he receives a monthly payment from the direct primary care membership, Nunamaker’s income is no longer dependent of the number of patients he treats. This translates into more time with the clients he does see. He now has 400 to 600 students on his list “compared to the 2,500 to 4,000 he said a typical family physician usually maintains.” And his salary has not taken any cut as a result.
On an NPR interview, Dr. Arnold Milstein from Stanford University explains that “From the perspective of most primary care physicians, this offers a pathway from […] what’s been referred to as life as a primary care hamster.”
Direct primary care may present a surprisingly effective alternative for uninsured families, people with high-deductibles and small businesses and unions trying to provide affordable healthcare plans to their employees. Paying the monthly flat fee, which ranges from $50 to $150 for an adult, provides patients with the ability to see their doctor as often as necessary because they are worried by co-pays and deductibles.
Is It Working?
A three year analysis of concierge medicine was published last May. Data showed that while most direct primary care physicians are practicing family medicine or specializing in internal medicine, the number of cardiologists, dentists and pediatrics opening concierge care offices has grown quickly.
Also interesting was the report that “62% of direct care and concierge medical offices employ between 1-2 office employees.” This provides huge savings on office space and additional employees which can then be passed on to the patient.
And patients are happier as more than 70 percent of direct primary care doctors “visit with their patients between 30-60 minutes per office visit.” This stands in direct contrast to the average of 15 minutes spent with the actual doctor at a normal practice. This is possible because, as the study released on PR Web reported, these physicians only treat “six to eight patients per day.”
This new healthcare experiment has some skeptics. While the average annual income for concierge doctors is high, “between $100,000 and $300,000,” the average income of direct primary care members who these physicians are treating is also relatively high, between $50,000 to $200,000 per year.” But as healthcare reform inspires doctors to think outside the traditionally bureaucratic process, some experts remain hopeful that the benefits of direct primary care will become more and more accessible.
Image from reaon.com