The Power of Primary Care Practices:
How healthcare organizations are turning a profit-loss center into today’s biggest untapped revenue source
Primary care practices have been purchased by large medical groups, hospital systems and even insurance companies at a record rate. Today, only 46% of medical practices are independent, compared to more than 60% just ten years ago. But if primary care practices are loss centers, why are they being snapped up?
First, of course, is the obvious. Primary care practices see thousands of patients and help drive business to all other areas of a large healthcare network. Access to their patient base is worth the investment and any potential loss. Second, primary care physicians have what so many large, often bureaucratic systems lack: a personal connection to patients. There is no better face for a large healthcare organization than a primary care physician. They are the go-to doctor who sets all the medical wheels in motion and makes sure care is comprehensive, proactive and accessible. From a branding perspective, you just can’t beat the trusted doctor with the neighborhood practice. For many years, medical groups and institutions recognized this value when they purchased the practices of our clients. They understood the basic nature of primary care. However, administrators were often unsure what to make of their concierge membership programs, most of which operated quite separately from the general practice. The administrators largely took a wait and see approach. The programs were operating well, generating substantial revenue, the physicians liked them, and they weren’t turning away business, so administrators allowed them to continue, undisturbed. Today, things are different, not just for primary care physicians, but for the hospital networks and medical groups that own them. The optimism that kicked off these takeovers, promising efficiencies and value, just isn’t enough. Financial pressures have increased, along with complexities that come with a growing physician shortage and physician burnout. This pressure has led to business administrators taking a second look at the medical practices of primary care physicians with concierge programs. Were they perhaps selling primary care practices short? Could concierge medicine turn a primary care practice into more than just a friendly face and a funnel to bigger business, but a profit center in its own right? That’s how healthcare organizations became our fastest growing market. Large medical groups that started with just one concierge physician with a blended program have now expanded to make Concierge Choice membership programs available in a variety of their network’s practices. Organizations who struggled to keep senior physicians from retiring early are now making our flexible membership medicine programs a key part of their retention efforts. And, in an environment where many employed physicians are reporting burnout, the ability to practice concierge medicine at a slower, more satisfying pace for at least part of their day is a tremendous incentive. So, how does membership medicine work in this kind of environment? The key in a large, multi-physician, multi-specialty organization is the flexibility. |
Primary care practices cannot compromise what makes them so valuable:
1. Their large patient base and the ability to refer business within the network. 2. Their ability to serve as an organization’s ambassador, practicing in neighborhoods where their patients live and work. This means that dismissing patients who don’t join won’t work. And, it means relocating physicians and patients to swanky new offices in hospital settings isn’t ideal either. Programs must support the mission to care for all patients without disrupting a practice structure or style. We work closely with administrators to structure programs that ensure everyone’s goals are being met. On the healthcare organization’s side, that, of course, means revenue, but it also addresses physician retention and recruitment issues. On the physician side, it means having the time to practice a relaxed form of medicine, for at least part of the day, without blowing up their schedule. And from a patient perspective, having more control of their medical care gives them peace of mind. They don’t feel like just a number in the system. Issues to consider include how to:
These issues require flexibility and expertise to traverse, which is why we are now the leading concierge organization in this market. Flexibility is literally the foundation of our company, which began as an alternative to the one-size-fits-all concierge approach. So, how does a healthcare administrator get started? Like in all new endeavors, the most important step is the first step. A pilot program—just one physician or one group—will demonstrate the power inherent in primary care and can eventually turn a profit-loss center into a revenue generator and more. LEARN MORE: If you’d like to learn more contact Concierge Choice Physicians at 877.888.5590 or email [email protected] |