In collaboration with Concierge Choice Physicians
Could a care model that has been around for years, but has only recently begun to draw attention from large health systems, be a solution to many of the challenges that healthcare organizations face — including physician retention, patient experience and financial sustainability?
As with anything in healthcare, there is no silver bullet. But one visionary leader who saw the potential of concierge medicine — also referred to as membership-based medicine — long before it was an industry buzzword believes membership-based medicine can help address many of those issues. That leader is Wayne Lipton, managing partner of Concierge Choice Physicians (CCP), who founded CCP 20 years ago.
The model of concierge medicine is based on an annual membership fee paid by patients in exchange for an enhanced practice experience with greater service and support. Practices can offer a “full” model, where all patients are members, or a “hybrid” model, where a concierge program is offered as a service option that patients in the traditional practice can choose to select. For most organizations, the flexible “hybrid” model is more realistic, since they do not have to forego any patient or referral relationships.
During an April Becker’s Hospital Review podcast sponsored by CCP, Mr. Lipton discussed how a flexible approach to membership medicine can alleviate pressures related to revenue, patient experience, and physician recruitment and retention for medical practices.
Three key insights were:
Concierge medicine is attracting growing interest from large health systems. When Mr. Lipton founded CCP 20 years ago, concierge medicine did not exist and healthcare leaders often thought CCP was in the hospitality business, he recalled. But over time, many small, independent medical practices have come to recognize the value of the concierge model and have made it available in primary care, family and internal medicine settings.
The practice of membership-based medicine eventually expanded to specialists who provide non-episodic/ongoing care, such as cardiologists and gastroenterologists. Now it is expanding even further, with large hospital-affiliated groups inquiring about it. “One of the reasons it’s now possible for hospital-associated groups to do this is that hybrid care is consistent with the vertical [care integration] strategy that exists in these groups,” Mr. Lipton explained.
Flexible membership medicine plays a key role in creating a rewarding practice environment. Organizations that offer hybrid concierge medicine programs benefit with a new, steady and private revenue stream to supplement reimbursements from third-party payers — such as Medicare, Medicaid or commercial insurance. They are not completely reliant on seeing high volumes of patients in a fee-for-service environment. Therefore, they have more revenue predictability. “It is consistent,” Mr. Lipton said. “Membership medicine is a way to have recurring, consistent, predictable revenue.”
A new, predictable revenue source that takes pressure off providers is good not only for facilities but also for physicians, especially for newly recruited physicians and for those approaching retirement. Both groups see concierge medicine as a desirable way to work, since it enables them to slow down the pace of their practice yet is financially and professionally rewarding.
“Concierge medicine extends the careers of seasoned physicians because it allows them to be productive without having to see a very large number of patients within a day, so their professional and personal satisfaction increases,” Mr. Lipton said.
He added that organizations can use the same logic when recruiting new physicians who, in the midst of acute staffing shortages, now have more choice than ever in where they work. “One of the ways you can compete is to offer something that is desirable on the part of the physicians and yet is consistent with what you’re trying to accomplish within larger groups.”
To make the most of hybrid concierge medicine programs, large organizations need to be properly structured. How a membership-based medicine model is set up determines whether the organization can achieve the necessary buy-in from internal stakeholders to ensure stable recurring revenue.
“Hybrid models are an opportunity that requires deep understanding of the many variables and strategies involved,” Mr. Lipton explained. “One of the more subtle pieces is obtaining buy-in: when you do this in a larger system, you have to have first buy-in at the management level, then at the doctor level, then on the patient level.”
Thanks to its two decades of experience setting up concierge medicine programs, CCP can be an invaluable partner to health systems and hospital groups looking to add such programs to their current services. Making the move to concierge or membership medicine can help them remain competitive in the marketplace while offering patients a higher level of care, setting up their own price points and expanding revenue streams. Mr. Lipton termed this dynamic as “taking control of their destiny.”
