From the April 2016 issue of HealthCare Business News magazine
Why subscription medicine works
Like all successful recurring revenue models, concierge medicine works because it delivers tangible benefits that build over time with both patients and doctors. Patient benefits. In a time of sky-high deductibles, many people avoid trips to the doctor because they can’t afford to pay outof- pocket. They often put off going until they have to, and end up sicker as a result. That’s not the case with retainer-based medicine. Patients can see their doctor as often as they wish for just $35 to $100 a month — and not just when sick. Regular checkups help patients avoid getting sick in the first place. As a consequence, preventive care is one of the key benefits of concierge practices. In fact, by keeping patients healthier and out of hospitals, membership medicine can reduce costs as much as 20 percent, according to a 2015 study by Qliance, a Seattle-based DPC provider.
Provider benefits. In traditional primary care, doctors are compensated for the services they provide. It’s a system that rewards high patient volumes. But as a result, many doctors in standard practice are spread thin. They may handle 2,500 to 4,000 patients yearly, spending an average of only 15 minutes with each. In comparison, physicians with MDVIP see an average of 500 patients yearly. Because concierge doctors derive most of their income from subscriptions instead of services, they can spend more time providing quality care to patients and giving each one their full attention. They even have time to work with patients between visits to help them reach their goals, resulting in more satisfying outcomes for both patients and their doctors.
There are approximately 6,500 concierge practitioners in the U.S., a gain of nearly 50 percent since 2012, according to the American Academy of Private Physicians. The disruptive trend is poised to accelerate. Today’s patients, particularly younger generations, are more involved in their health care and more likely to rely on preventive measures to stay healthy at a price they can afford. Over-scheduled doctors are increasingly eager for new ways to serve patients at a more manageable pace. And health providers and insurers are beginning to see the financial wisdom of preventive medicine and wellness initiatives. For many with vested interests in better health outcomes, subscription medicine just may prove to be the right prescription at the right time.
About the author: Brendan O’Brien, co-founder of Aria Systems, introduced the world to cloud billing — before the concept of “cloud” even emerged. A frequent speaker on IoT subjects, O’Brien is also at the forefront of the recurring-revenue revolution that is empowering enterprises by securing predictive revenue streams while improving business processes.Back to HCB News
