Ways To Structure a Membership Practice

Previous blog posts focused on membership practices, and you’re convinced! This post will discuss ways to structure a membership practice.

Before we look at the different models, remember that much of your success when transitioning to a membership practice depends on understanding your patient demographic, choosing the right structure to serve them, and educating them on how the new practice model will work. If you’ve selected the right practice structure for your demographic, communicating the benefits to your patients should be easy. Now let’s look at the three most common ways to structure a membership practice.

Hybrid Structure

A hybrid model is ideal if you’re nervous about making the leap into a full concierge practice or think your patients will be resistant to the idea. Many people still have a negative connotation with the word concierge, assuming it’s something they can’t afford.

A hybrid structure charges a membership fee (to cover services that insurance doesn’t) while billing insurance for office visits and other covered services. This allows patients to carry a high-deductible policy for major health issues, while covering select routine and preventative services with the membership fee. This structure can also provide the amenities that make concierge services attractive to patients, such as longer appointments, same day appointments, and telephone and e-mail access to the doctor.

Another way to structure a hybrid practice is to maintain a traditional practice while offering additional services for a membership fee. This type of hybrid structure can be controversial. Some people consider it “two-tiered” care where those willing and able to pay more get better care than those relying only on insurance.

Fee-for-Care

If you’re considering a fee-for-care structure, you first must decide if you want to accept insurance. You’ll also need to decide what services the fees will cover. Typically, patient fees cover most services that are provided in the office. Some services such as vaccinations, lab work, and X-rays may be excluded from the fee and charged separately.

If you choose not to accept insurance, and your fees will not cover out-of-office services, it’s important to develop relationships with local labs and imaging centers. Establish a close relationship with your representative from these providers so they’ll work with you to facilitate same day appointments and discounted services.

Menu of Care

Would you eat in a restaurant that didn’t disclose their prices? Doubtful. This is how many people feel about going to the doctor, whether they have insurance or not. But very few doctors disclose their prices, and some might not even be able to answer if a patient asked how much a visit or procedure would cost.

This can be nerve-wracking for those who have no insurance or who have high-deductible plans. To address these fears, some practices are establishing a “menu of care” structure. All of the pricing is spelled out. There are various categories of memberships and a listing of what’s included in each one. (You’ve probably seen tiered packages such as bronze, silver and gold on non-medical websites…it’s the same idea.) Some practices provide a la carte pricing for every service offered. You can even set up a menu of care practice without a membership component by pricing everything a la carte.

From a marketing standpoint, this is one model that can really benefit from accepting insurance. Patients with high deductible plans love this model because they know exactly how much they have to pay and what’s left to meet their deductible.

Which Structure Is Right For You?

If you want to test the waters before deciding to discontinue taking insurance entirely, the hybrid method is the choice for you. If you know what services you’ll cover for a membership fee and have good relationships with labs and imaging centers, a fee-for-care structure will serve you and your patients. If you like to put your cards on the table and have a lot of patients with high-deductible plans, you’ll both be happy with a menu of care structure. If you’re still uncertain, consider a brief survey of your patients to determine what would best match their needs and comfort levels.

There’s no “one size fits all” approach to moving into a membership practice model. Fortunately, there are many ways to structure your practice so you can get the right fit for you, your staff, and your patients.

 

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