New data summarizing concierge medicine and direct-pay physician salaries in the U.S. — New 2013-2014 Data on Concierge Physician Salaries Annual Report Released by Trade Journal, Concierge Medicine Today —
Atlanta, GA (PRWEB) May 19, 2014 – Concierge Medicine Today, the industry’s oldest national trade publication for the direct primary care and concierge medicine marketplace, released data this week summarizing concierge medicine and cash-based physician salaries in the U.S. The data is based upon surveys, polling analysis and verbal responses received from concierge doctors throughout the U.S. during the 2013-2014 calendar year. Here are some of the highlights:
- 49% of Concierge Physicians reported that their annual salary/earnings in 2013 increased compared to years past.
- 41% of Concierge Physicians reported that their annual salary/earnings in 2013 decreased compared to years past.
- 10% of Concierge Physicians reported that their annual salary/earnings in 2013 remained unchanged or the same compared to years past.
- Reasons given by Concierge Physicians for decreases in salary included: increasing business taxes (both State and Federal) and fewer patients were renewing their membership with the practice.
Some physicians are becoming concierge doctors within the hospital environment to both reduce administrative time and earn more income. Still others are choosing to maintain solo concierge medicine practices, approximately 85%, according to three years of physician polling data conducted by The Concierge Medicine Research Collective.
On average, a Concierge Physician earns the equivalent salary of a specialist, such as a cardiologist or a radiologist. Most concierge doctors do a significant amount of charity work, often seeing about 10 percent of their patients free-of-charge or at a reduced fee. Concierge Medicine puts the incomes of internists and family practitioners on par with their colleagues. A 2012 Medscape study found that the average salary for a primary care physician ranged from $156,000 to $315,000, while Bloomberg Businessweek reported that the average salary for a Concierge Physician ranged from $150,000 to $300,000.
Concierge Medicine Physician Compensation Data from 2013-2014
- 14% of Concierge Physicians earn $1 – $100,000 per year.
- 31% of Concierge Physicians earn $100,000 – $200,000 per year.
- 19% of Concierge Physicians earn $200,000 – $300,000 per year.
- 14% of concierge Physicians earn $300,000 – $400,000 per year.
- 13% of Concierge Physicians earn $400,000 – $1 Million per year.
- 9% of Concierge Physicians earn $1 Million per year and above.
Concierge Physicians within the hospital environment may enjoy the best of both worlds. They see a reduced number of patients on a day-to-day basis while earning higher salaries and handling less administrative obligations than they would in a traditional private practice setting. When compared to traditional, insurance-based physicians working in a hospital setting, Today’s Hospitalist conducted their own limited survey of non-concierge Hospitalist physicians and found that the salary ranges very widely with some Hospitalists making between $150,000 to $227,000 in annual income.
Concierge Medicine Physician Compensation Data from 2012-2013
- 14% of Concierge Physicians earned $1 – $100,000 per year.
- 23% of Concierge Physicians earned $100,000 – $200,000 per year.
- 25% of Concierge Physicians earned $200,000 – $300,000 per year.
- 21% of Concierge Physicians earned $300,000 – $400,000 per year.
- 17% of Concierge Physicians earned $400,000 – $1 Million per year and above.
In some instances, a concierge medicine office will serve 600 patients and these membership fees can generate a gross income of $900,000 (600 patients x $1,500). If the practice bills the patient’s insurance for additional healthcare services, these insurance reimbursements will also add to the gross income of a concierge medical practice. One physician told Medical Economics recently that membership fees in his practice account for two-thirds of his gross revenue, while insurance revenue brings in the remainder. Many physicians in this industry report that switching from a traditional, insurance based, managed care style medical practice business model to a membership-based, direct-pay business model helps reduce administrative costs, operational expenditures and staffing. With a reduced patient load from that of a traditional primary care practice, concierge medicine and cash-only clinics are more about improving the patient-physician relationship, eliminating costly distractions from a medical practice, such as insurance filings, and about simplifying the doctor-patient relationship based on price transparency. Many are now offering extended hours that cater to a more patient-centered relationship with a physician.
“Interestingly, doctors across the country are some of the last businesses in the modern era to tell their customers (i.e. patients) how much things cost,” says Catherine Sykes, Publisher of Concierge Medicine Today and The Direct Primary Care Journal, marketplace trade publications, reporting on the industry’s various activities. “Doctors are becoming much more transparent about their fees. This is all happening at a time when the cost of health care is rising.”
Concierge Medicine Today also reports that the states which appear to be the leanest from a Concierge Physician population perspective are in areas including: Hawaii; Idaho; Iowa; Mississippi; Maine; New Hampshire and South Dakota. Furthermore, Concierge Medicine Today found the number of patients who are seeking concierge medical care in the past 24-months is far greater than the actual number of primary care and family practice Concierge Physicians available to serve them. Concierge medical services in rural areas like Idaho, North Dakota, South Dakota, Alaska, Hawaii, Louisiana and Mississippi are in shortly supply. Oftentimes, there are less than half-a-dozen practitioners to serve an entire state.
Concierge Medicine Today also finds that:
- Concierge Medicine Today estimates Concierge Medicine and Direct-Pay physicians to number approximately 12,000 physicians and/or physician clinics throughout the U.S. This data is based upon an in-depth review and recent examination of the national marketplace as well as interviews with corporate industry leaders and marketplace decision makers.
- Over 80% of concierge physicians accept insurance in their practice, while the remaining have cash-only, menu-style healthcare practices.
- The majority of concierge doctors and cash-based medical practices generally require each patient to pay a fee, the majority of which, (65%), cost less than $135 per month.
- The Top 4 most popular specialties in Concierge Medicine and Direct-Pay Healthcare are still: Primary Care; Family Medicine; Cardiology and Pediatrics.
- The Top 10 Best States To Start A Career in Concierge Medicine or Direct Primary Care in 2013-2014 include: Utah; California; Texas; Florida; Washington State; New York; Colorado; Georgia; Tennessee; and North Carolina These States were carefully selected based upon data and analysis by Concierge Medicine Today. Where Concierge Medicine and Direct Primary Care practices are growing and there is the ability to scale their business for mass-market, employer appeal is likely to occur.
- The typical age of a Concierge Physician is between 40-59 years of age.
- Most Concierge Physicians and Direct Primary Care physicians treat six to ten patients per day.
- Female Concierge Physicians fill up their concierge practices 30% faster than men.
- 58% of Concierge Medicine practices employ 1-2 employees.
“Growth in any service industry, particularly healthcare depends, largely on consumer spending. Concierge Medicine and it’s cousin, Direct Primary Care are fast approaching a tipping point,” adds Sykes. “Doctors are now deciding between what they have to do and what they want to do.”
Sources: Medical Economics; The Concierge Medicine Research Collective, 2013-2014; Today’s Hospitalist; Concierge Medicine Today, 2013-2014; Bloomberg Businessweek; The Direct Primary Care Journal, 2013-2014.
About Concierge Medicine Today
Concierge Medicine Today (CMT), is a news organization and the industry’s oldest national trade publication for the Direct Primary Care (DPC) and Concierge Medicine marketplace. Their web site, http://www.ConciergeMedicineToday.com, is the online destination for consumers, businesses, physicians, legislators, researchers and other stakeholders to learn about the history of this industry, various business aspects of the marketplace, trends, breaking news and more that drives the conversation that concierge medicine and direct primary care is creating on a national and international level. To locate a concierge doctor or learn more, visit: http://www.ConciergeMedicineToday.com or http://www.DirectPrimaryCare.com.
Initially, Concierge Medicine and Direct-Pay doctors were mostly operating in primary care and family practice. The latest data from Concierge Medicine Today (CMT) reports that there are an estimated 12,000 Concierge Medicine and Direct-Pay practices nationwide in 2014. While these figures differ somewhat from analysis touted in the media and quoted by other organizations, CMT’s number represents primary care and family physicians plus a wide range of Concierge Medicine and Direct-Pay healthcare specialty practices in the U.S. In 2011, there started to be a growing number that practice in secondary Concierge Medicine specialties including: pediatrics; general surgery; psychiatry; spine surgery; gynecology; dentistry; cardiology; addiction medicine; dermatology; oncology and more. These specialty practices usually offer the same immediate access, longer appointments, and a proactive health focus similar to primary care concierge practices. Some also offer home visits. Specialists usually limit their practices to a smaller number of patients –150-300 compared to the more typical 300-750 patients for primary care. They also tend to have patients who have chronic conditions.
Recent industry changes along with the implementation of the Affordable Care Act bringing a sudden influx of recently insured lower-income patients to the doctor’s offices. Primary care and family medicine doctors are listing their prices in menu-like fashion and offering affordable healthcare services and discounts on laboratory tests and examinations for a fraction of the cost seen in most traditional, insurance-based, managed care medical offices. CMT finds that approximately two-thirds charge less than $135 a month on average. This figure includes primary care, family medicine, osteopath and various specialty physician practices.
About The Concierge Medicine Research Collective
The Concierge Medicine Research Collective is a research and data depository created by Concierge Medicine Today. The Concierge Medicine Research Collective is an independent health care research and data collection depository of the multimedia news and trade publication, Concierge Medicine Today based in Atlanta, GA. The Collective serves as an educational resource on all things Concierge Medicine and is geared towards those businesses, lobbyists, physician associations, health care advocacy groups and general consumers of healthcare who want to learn more about information available on the topic of concierge medicine. The Collective works in partnership with Universities, Physicians, Associations, Businesses, individuals and even Graduate Medical Students to further advance the educational awareness and facts surrounding unanswered questions about Concierge Medicine care in the U.S. and Canada. For more information, visit: http://www.AskTheCollective.org or http://www.ConciergeMedicineToday.com.