CONCIERGE MEDICINE COST ANALYSIS: Are Costs of Memberships Among Concierge Doctors Rising?
Are Costs of Memberships Among Concierge Doctors Rising?
By Staff Writer, Concierge Medicine Today(CMT)
JULY 15, 2013 — As a concierge medicine or direct primary care medical practice physician and business owner, you have to balance a significant number of expenses including: leased space; staff; utilities; equipment costs; and many other costs. Leased/owned space and staff salaries are what most concierge doctors report are their highest annual expenditures. However, these are not the only expenses in a practice that can be critical to your bottom-line. Even small changes in overhead expenses can affect your bottom line. The more you have to pay for services, utilities and supplies, the smaller the percentage of your revenue gets distributed as profit.
According to data analyzed from nearly 1,000 currently operating concierge practices in the U.S. between 2011 and 2013, we’ve determined the national average annual fee for concierge medical services is between $1,400-$1,700 per patient, per year. Large networks of concierge doctors have claimed a significant portion of the concierge doctor market share and thus help to keep prices from inflating too high in major metropolitan markets.”
Concierge Medicine Today has found that some independent concierge doctors who are not part of a large group charge higher rates ($2,500 and up).
“Interviews with various industry sources indicates that the average patient or consumer of concierge medical services market can withstand a small annual premium increase of about $25 to $160 per year,” adds Tetreault. “The problem with raising prices for concierge patients, especially in private, direct-pay medicine and concierge medical clinics is that it causes patients to reassess how much value this service brings to their life, their financial commitment, their current quality of life, past experiences with the doctors’ staff, traffic and travel interruptions and how often they actually utilize services on an annual basis.”
Concierge Medicine Today (CMT) receives inquiries everyday from people looking to join a concierge medicine practice. CMT also regularly receives inquiries from doctors who are looking at how much they are charging for services. They are attempting to determine how they can balance those fees and still charge what their patients will pay without appearing to price-gouge their patients.
CMT recently asked physicians from across the U.S. from December 2009 to December 2012 questions pertaining to their concierge medicine and direct primary care practice, cost, patient satisfaction, business strategies, revenues and more. The analysis revealed the following results:
- The combined average annual income of a typical concierge medicine [and direct care] patient is between $50,000 to $200,000 per year.
- Most concierge doctors and direct primary care physicians treat six to eight patients per day.
- More than 60% of concierge medicine and direct primary care (DPC) subscriptions/membership fees cost less than $135 per month.
- Read Full Story From CMT (2013) Survey …
“Our opinion and that of our research arm, The Collective, is that there are approximately 5,000+ physicians nationwide,” adds Tetreault. “We believe the growth rate will be high in the coming years – possibly higher than 30% due to the Affordable Care Act (ACA). Although this is our opinion, we have certainly seen an increase in physician interest to support it.”
About Concierge Medicine Today
Concierge Medicine Today (CMT), is the premier news and multi-media organization and the industry’s oldest national trade publication for the direct primary care and concierge medicine marketplace. Their web site is the online destination for business, consumers and physicians to learn about the history of this industry, various business aspects of the marketplace, trends, breaking news and more that drive the conversation and generate the national buzz that concierge medicine and direct primary care is creating on a national and international level. For more information, visit: http://www.ConciergeMedicineToday.com.
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.