Concierge and Direct Primary Care models are relatively new business model options. Concierge
medicine practices charge patients a flat fee either on an annual basis or monthly. Concierge
models provide enhanced services and greater access to care. Direct Primary Care (DPC) models
charge a monthly or annual fee to the consumer for enhanced access and services. DPC models
do not bill insurances. Both models derive most of their revenues from membership fees.
INSTRUCTIONS
You will read the case study “Move to Concierge Model or a Direct Primary Care-Medicine
Business Model?” in the Walston Strategic Healthcare Management: Planning and Execution
course text. You will then write at least a 5-page paper in current APA format that clearly
addresses the advantages and disadvantages of business models for primary care physicians and
describes its value, input, processes, and revenue changes. To accomplish this, you will address
the case questions presented in the assignment below. Your answers must be supplemented with
research from your course textbooks (Walston – Strategic Healthcare Management: Planning
and Execution, and Wayland & McDonald – Strategic Analysis for Healthcare: Concepts and
Practical Applications), peer-reviewed articles, and other quality sources.
In your paper, please answer the following questions:
1. What are the advantages and disadvantages of the General Medical Clinic moving its
primary care physicians to concierge or DPC models?
2. How would General Medical Clinic’s business model need to change if it moved to either
model? Specifically, how would its value, input, processes and revenues change?
3. Given the direction of healthcare, what would you recommend if you were Michael?
Expert Solution Preview
Introduction:
The Concierge and Direct Primary Care models are new business model options for primary care physicians. In this paper, we will analyze the advantages and disadvantages of these models for the General Medical Clinic. We will also explore how the business model of the clinic would change, both positively and negatively, if it were to move to either of the models. Finally, based on the healthcare industry direction, we will provide recommendations to the clinic.
1. Advantages and Disadvantages of Concierge or DPC Models:
The Concierge and DPC models offer enhanced services and greater access to care to the patients for a flat monthly or annual fee. The advantages of these models for General Medical Clinic would include the ability to offer increased services and specialized care and an option to avoid billing insurances. However, the major disadvantage would be the answerability to consumers and a potential decline in the number of patients opting for this type of healthcare model.
2. Business Model Changes:
If the General Medical Clinic opts to move to either of the models, the value, input, processes, and revenue would change. The value of the clinic would increase, as the patients would be getting better access and services. The input would transform from patients paying as per insurances to monthly or yearly fees. The clinic’s processes would change as the physicians would have to be available for more hours and offer specialized care. The revenue would be generated in the form of membership fees instead of insurance billings.
3. Recommendations:
Considering the ongoing changes in the healthcare industry, it is advisable to move towards the DPC model. The DPC model offers enhanced services and access to patients. It is a more sustainable business model in the long run as the revenues come from membership fees instead of insurances, which tend to fluctuate. The clinic can be more flexible and cater to the needs of specific patients. Despite the disadvantages, the advantages are more favorable than those presented by concierge medicine.
Conclusion:
In conclusion, the Concierge and DPC models offer innovative ways of providing healthcare services. The General Medical Clinic could benefit from such models provided the company is willing to change and adapt to new processes, values, and input. The recommendations are based on the course material and the current healthcare industry direction. The clinic’s transition towards DPC would be financially sustainable in the long run, and the clinic would be able to provide better services.
