Today I’m going to talk about concierge practice. This is really for private practice owners with medical or specialty practices based on insurance payments. If you are waiting for insurance reimbursement, that’s not concierge. That’s insurance based pay model practice.
On the other hand, concierge practice is like a plastic surgery practice or dental practice. If you go to get a procedure done by a plastic surgeon or dentist, 9 out of 10 times you pay cash. So concierge model, or patient pay model, as I like to call it, is where patients pay out of pocket.
Is it worth it to consider a concierge model if your current model is based on insurance?
I’d say yes, 100%.
This is a tough time for physicians and surgeons who practice on a private practice basis because as you know insurance reimbursement is going down every year. They’re squeezing out. I practice in the Chicago area, so I’m not one of those just talking theories. I’m breathing it in every day and I’m leading and coaching other doctors, so I know what I’m talking about.
I converted my practice to a hybrid concierge model. That’s a new concept. Just as you have gas cars, electric cars, or hybrids, why not have a hybrid concierge practice? This means you’re somewhere between insurance-based and completely cash-based.
You cannot jump overnight from being insurance-based to concierge-based. What I’m suggesting is you convert from the worst insurance company model and you start opting out. You know insurance companies that keep delaying payments or keep denying, or sometimes they want you to pay them back. Take those out one by one.
Don’t do everything at the same time.
That’s going to be risky because you need cash flow to run a successful business. That’s the most critical element of running a business. You’re feeding and growing your business – like raising a baby. You need cash flow so don’t jump overnight but through the years.
I’m only participating in two private insurance programs. I’m not participating in Medicare, Medicaid. I’m not participating in all the PPOs, HMOs, and ACOs, except two, because their reimbursement is fair for physicians. Now I have total control, so I call it a hybrid concierge model.
Throughout this series, I’m planning to explain to you more about what it is, and why it’s important. Hopefully, I will provide you value and open your eyes to a way to grow and thrive your private practice.
This article was edited from a transcript of this video.