Here are five things to know about cash-based payment for physicians:
1. Cash-based models supply “a more predictable revenue stream that can be quite lucrative,” and the industry is thus seeing an evolution in their favor, Sam Patel, MD, founder of medical consulting firm Astra Culture, told Medscape in a Dec. 23 report.
2. A Medscape survey from 2020 suggests they are used by less than 20% of clinicians, but there is overall little confirmed data on the prevalence of direct pay models among medical professionals.
3. Patients often pay an annual or monthly fee for access to a set menu of care services in these arrangements. This differs from concierge medicine, where practices still bill insurers for certain services and use the membership fees to enhance access and convenience.
4. Medical school debt, burdensome paperwork and declining reimbursement are the primary factors driving more physicians to consider cash-based models, according to the report.
5. Having access to their physician is a central draw to this practice model for patients. “Patients want direct access to care, and they want price transparency,” Dr. Patel said. “For some, paying a doctor $300 for an appointment – and being able to secure one within a day – is well worth it.”
