No More Costs to Cut? Boost Your Healthcare Organization’s Revenue Instead

According to a recent survey by the Medical Group Management Association (MGMA), 92% of medical group leaders report their operating expenses have increased in 2024. It’s no surprise. In fact, this continuing trend has gotten worse over the last few years.

MGMA discusses ways that medical practices and healthcare organizations are attempting to buffer these rising expenses by consolidating facilities and examining other costs. But what if you’ve done that? What if you’ve already squeezed as much as you can from your budget, your operating costs and your providers are maxed out?
Medical practices and healthcare organizations are a unique business. The MGMA article points out that medical practices are “caught between the rock of set payments and the hard place of increased costs.”  They can’t just increase the fee for patient visits, and they can’t keep adding patients without burning out physicians and providers at every level. It can feel overwhelming, like there is no way to bridge this fiscal gap.
There is good news though. Practice managers and administrators are now recognizing the value of membership medicine as a way to substantially increase revenue, particularly in primary care practices that have traditionally underperformed. 

Many healthcare organizations today are adding new, private revenue through membership medicine programs. In fact, at Concierge Choice Physicians, healthcare organizations are now our fastest growing market. We are currently working with hospital systems, regional healthcare groups, not-for-profit institutions, physician-owned medical groups, and even large specialty practices.

Our membership medicine programs come in many shapes and sizes, and they adjust to suit the needs of the healthcare organization and its patients. Some have added a Hybrid Choice™ program, which gives patients the option to join a physician’s concierge program or remain in the traditional practice. Other healthcare organizations have implemented full-model Concierge Choice programs based on high demand from patients. Still others have a mix of both, or have programs that evolve as patients and physicians grow more comfortable.
The point is, today’s membership medicine programs are flexible. They have integrated to become a key part of revenue plans for many large medical groups and organizations. For example, on average, revenue from a typical Hybrid Choice program increases a physician’s revenue by 30%. This easily makes up for the increase in operating expenses, and then some. Simple Hybrid Choice programs have turned primary care practices that were losing money into actual profit centers, not just referral sources.

The financial benefits go beyond just the new, private revenue stream. Think about how much physician burn out and  turnover costs your organization. Physicians who practice membership medicine for even just part of their day report high levels of satisfaction with their job. The slower, more personalized pace allows them to practice the kind of medicine they enjoy in an unhurried environment, without sacrificing revenue. Many practice managers and business administrators are using membership medicine to extend the careers of senior physicians who might otherwise retire. These programs are also being used as a recruitment tool to attract and incentivize new, high-quality physicians.

Membership medicine programs are even being used to attract a more loyal patient base in a competitive marketplace. After all, patients are feeling the same pressure practice managers and physicians are experiencing. They want conveniently scheduled appointments with the physician they always see, the one they prefer, who knows them. They don’t want to be shuffled around to whichever provider has time for them. They want help navigating a complicated healthcare system with several providers. They want to know that when they call, they’ll get a real human on the phone, and they are willing to pay for a membership program to secure that peace of mind.

Practice administrators shouldn’t ignore this opportunity. Consider launching a pilot program of just one or just a small group of physicians as a test. That is how many of the healthcare organizations we work with began. Just one physician is all it takes to recognize the value in membership medicine. Our clients have expanded from there.
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Concierge Choice Physicians has many resources to help practice managers and administrators understand the opportunity in membership medicine. Here are a few articles that offer more detail:

• “The Power of Primary Care: How healthcare organizations are turning a profit-loss center into today’s biggest untapped revenue source”

 

• “Healthcare Organizations Meet Goals with Membership Medicine: Bolster Physician Morale, Improve Retention, Attract New Doctors and Extend Careers

 

• “Case Study: Concierge Medicine and Health System. How the right model works and why.”

 
We also welcome the opportunity to talk with you about your healthcare organization and how our programs might help. Feel free to contact Concierge Choice Physicians at 877.888.5590 or email [email protected].