Given that any career change is a risk, it is crucial to cover every angle, starting with why you want to transition to concierge medicine to begin with.
Concierge medicine promises a reduced patient load, one where physicians are able to extend personalized care and establish a genuine, tight-knit relationship with each patient.
Many concierge medicine doctors also share that they discovered better work satisfaction since their transition to concierge medicine.
Eliminating third parties, like insurance companies, from the equation allows primary care physicians to focus on what is truly important: quality patient care.
Subscription-based models also ease financial stress for physicians because it establishes a regular flow of revenue.
This serves as a stark contrast from the traditional, insurance-based model where a physician’s income depends on the volume of patients they see, as well as insurance reimbursements.
Hence, it comes as no surprise that more and more primary care physicians are making the transition to concierge medicine.
More and more doctors are making the switch to concierge medicine due to burnout in the traditional, insurance-based practice.
A 2014 study by Mayo Clinic reports that, out of 35,922 physicians that participated in the survey, 54.4% exhibit at least 1 symptom of burnout.
Rather than being occupied with building long-term relationships with their patients, traditional doctors are overbooked, bogged down by administrative tasks, and pressured to hit “financial quotas”.
This is why the rise of direct pay practices across the U.S. comes as no surprise. Many doctors are leaving traditional medicine for concierge care.
The failure of the traditional, insurance-based system has led to higher patient interest and physician satisfaction in concierge medicine business models.
While there is no secret formula to converting to direct primary care (DPC), there are measures that can be taken to set up your concierge medicine practice for success.
This article aims to be a comprehensive step-by-step guide to transitioning to concierge medicine.
At FindMyDirectDoctor.com, we aim to hold your hand through navigating the challenges of a concierge medicine transition, making sure it is as smooth and effective as possible.
A fundamental first step in private practice transition is to read books and other resource articles written by doctors who have undergone the same transition to concierge medicine.
This will help minimize risk and save you from costly mistakes down the line. Some resource materials we can recommend are:
Pop in local DPC events within your vicinity. This will help you gain a pulse of what leaving traditional medicine for concierge care will be like.
Concierge medicine gatherings like the Concierge Medicine Forum, the DPC Summit, and the Docs 4 Patient Care Foundation’s DPC Nuts and Bolts Conference and the Hint Summit are important opportunities.
These are avenues where you can talk to and pick the brains of your fellow concierge doctors.
You will find that having conversations with other physicians allows you to appreciate the benefits of transitioning to concierge medicine even more.
Moreover, your fellow doctors can offer valuable insight on business planning for a concierge medical practice, making you more prepared for any challenges that might come your way.
It also helps to research about the population demographic in your location of interest.
Will you be extending care to a more geriatric demographic? Do you envision yourself being successful in this particular niche? How can you add more value to the population demographic you will be serving?
Knowing your patient market can build the foundations of starting a direct primary care practice from scratch.
Conducting financial planning for your transition to concierge medicine requires careful consideration of several key factors. Here are some things to consider to help you navigate the process:
Determine Your Business Model
There are three ways to go about your transition to concierge medicine.
First, if you are a doctor working as an employee for a hospital or any similar medical entity and you wish to start your own concierge clinic from scratch, here are some offhand factors to consider.
a) the rent for your office
b) labor expenses to hire staff
c) a marketing budget to promote your practice
d) a ballpark figure of how much it will cost to transition to concierge medicine from your job as a medical employee and,
e) a timeline of how long it will take for you to have the funds on-hand to cover these initial expenses.
Knowing the ballpark figure of how much it will take to operate your clinic can also help you determine how much of that cost you can loan from the bank.
Depending on the bank, you can loan 70-75% of that total cost and pay it back in installments until you break even or start earning.
Second, if you are already running your own traditional clinic and you wish to convert your practice to a concierge model, initial investments won’t cost as much given that you already have the foundations of having your own private practice.
You also have a captured market already. If all goes well, the same set of patients will transition with you to concierge-style care.
In this type of pathway, all you have to do is switch up vendors to streamline your operations for DPC. It is also a priority to communicate any workflow changes clearly to your patients and hold their hand through the process.
Be honest to them about the following:
a) how billing will go moving forward (that they will be billed a monthly subscription instead of charging their insurance), and
b) if there are any changes as to how patient care is extended and how appointments will be conducted.
Lastly, the third pathway is joining an already existing concierge medicine network, in which you can either come from a doctor-employee background or your own private practice.
This method would have absolutely zero investment expenses since you are joining a network with their own expertise and industry experience doing the leg work on your behalf — marketing, patient onboarding, and everything else in between.
A major benefit of the third pathway is you do not have to take on the risk of starting your own business but a downside is you are still operating under the interests of another company.
You still would not have autonomy over how you wish to run your practice.They also take a chunk of commission out of your compensation to cover the labor and operating expenses they accomplish on your behalf.
Gather financial data from your current practice, like:
Create proforma budgets for the next 3-5 years, including:
Consider scenarios for different membership tiers, patient volumes, and services offered
Estimate the total costs associated with the transition, including:
Consider financing options, such as loans or investors, to cover these costs
Business plan
Proforma budgets
Financial statements (e.g., balance sheet, income statement)
Personal credit reports and financial statements (if applicable)
Remember to tailor your financial projections based on your specific concierge medicine practice and business model.
With careful planning and execution, you can create a successful and sustainable concierge medicine practice that meets the needs of your patients and achieves your financial goals.
Whether you are set on building your own direct pay practice or prefer joining an already existing concierge medicine network, having trustworthy people in your corner is key.
Consider this a comprehensive list of allies you should have in building a successful concierge medical practice:
1-2. Attorney and Accountant / CPA
Having an accountant and a lawyer you can turn to for financial and legal advice can save you a lot of painful (and expensive) setbacks in your concierge medicine journey.
They can assist you in adhering to laws, financial obligations, and regulations within your concierge practice.
They will help you comply with licensing requirements, patient confidentiality clauses (HIPAA), prescription practices, as well as standard medical protocols.
3. IT Consultant
Because concierge medicine practices nowadays are heavily tied to technology, team members who will set up your website, telehealth channels, and the like are vital to your ecosystem.
They will ensure your reliability as a concierge medicine physician, giving you peace of mind that your patients can access you every time they need to.
4. Front Office Staff
The role of an office manager in your clinic operations is to ensure that communication is seamless with your patients.
They will take care of administrative tasks on your behalf, plan out your appointments, and make sure that each patient gets enough time with you as needed.
5. Back Office Staff
Back office staff, such as medical assistants / phlebotomists, see to it that patient treatments are carried out properly and consistently.
They are great members to have on your team when your concierge medicine practice is able to take on additional labor costs.
Medical assistants are trained to take over certain medical tasks from doctors.
This is a valuable benefit to have in your concierge medicine practice as this improves the quality of care patients receive and ensures that all patients are tended to in a timely manner.
6. Lender
Should you decide to set up your own practice, it is considered wise to partner with a lender who can fund your concierge medicine startup.
Having a lender under your arsenal can ease the burdens of financial planning for a concierge medicine transition.
Much like any business endeavor, building a successful concierge medical practice is still considered a risk.
Not having to rely solely on your own personal funds can give you the power of better options, and an overall more solid foundation, in terms of starting a direct primary care practice from scratch.
7. Other Vendors
Some other vendors you will need are: an Electronic Medical Record (EMR) system, e-prescription tools, a telehealth platform provider, as well as lab and wholesale pharmacy partners within your vicinity.
As for marketing strategies for a new concierge practice, you can opt to either do it yourself, hire internal staff for it, or enlist a vendor to accomplish this function.
Make sure to cover a variety of in-person, digital, and paid marketing strategies to spread the word about your concierge medicine practice.
In the interest of concierge medicine success, it is also best to expand slowly. A small yet accessible office space, a lean yet talented team - this is all you will need, at least for the first few years during your transition to concierge medicine.
Here’s a little heads up: you will come across skeptical patients, and you must take that as an opportunity to communicate and connect.
Let this serve as a reminder that you will be treating patients that have been scarred, duped, and inconvenienced by the traditional, insurance-based healthcare model.
You will be surprised how powerful follow-up calls, immediate replies, and genuine concern can impact your relationship with your patients.
If you already have a traditional clinic and are set on making the switch to concierge medicine, you must communicate the transition clearly and walk your patients through some major changes.
Be honest to them about how the transition to concierge medicine will impact their finances, and give them opt-in and opt-out options.
If you are starting a direct primary care practice from scratch, you will have to follow marketing plans to attract new patients.
Off the top of our head, here are some marketing strategies you can explore
Because you no longer work under the guise of a traditional, insurance-based healthcare model, defining personal touches throughout your concierge medicine practice will make all the difference.
Maintaining consistent communication with your patients also gives insight on what matters to them, shedding light on what you can do to improve the patient experience.
Is it a handwritten note every time they visit your office? A direct number they can call should they have any follow-up questions after their consultation? What about wi-fi and water in the waiting room?
These small, thoughtful details can do wonders in building rapport and establishing trust with your patients.
Thinking ahead and trusting your expansion plan will give you an edge over other practices in the area.
Your patients will thank you immensely for incorporating additional services and advanced technology to your practice, as you move forward in your concierge medicine journey.
Adding services like remote patient monitoring, intuitive booking platforms, laboratory exams, minor procedures, and the like will help streamline medical care for your patients.
These improvements make seeing a doctor more convenient for patients, making concierge medicine a positive experience for them in many aspects.
Defining your own concierge medicine practice also entails setting a price range your patients can afford. You can offer above and beyond services to your patients but if a membership with you will bleed them dry, then there is no point.
Retainer fees can vary depending on your concierge medicine practice’s location, your professional experience in the medical field, the scope of services you will be offering, and the level of exclusivity you will be extending.
Therefore, it is also important to assess your current patient demographics, your ideal number of patients, and your financial situation.
The key is to strike a balance between offering primary care services done extraordinarily well at a price point your patients are willing to pay for.
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