Aug 10, 2021
OVERVIEW:
Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast talks about the top four reasons for opening a cash-based practice. He highlights the challenges practice owners face when it comes to insurance reimbursements. He also provides tips and options for anyone thinking about starting a cash-based practice.
EPISODE HIGHLIGHTS:
- There’s a misconception that clinicians and healthcare providers need to accept insurance to create a successful practice.
- Many healthcare professionals are moving away from accepting insurance. There are niche practices finding success through cash-based models, including surgical and primary care.
- The first reason for having a cash-based practice is there’s less regulation and you have more freedom as the practice owner.
- When you accept insurance, you’ll need to manage your revenue cycles. This will include submitting bills with some getting declined and some requiring resubmitting. This creates massive problems and issues.
- When it comes to revenue cycle management, you should hire someone or a company to help you, which means giving up 4-7% of your profits.
- The second reason for considering a cash-based practice is you get paid upfront. If you accept insurance, you’ll experience delays in payment 30-60-90 days.
- Insurance-based practices need a lot of cash in the bank to fund business expenses while waiting for the stream of income to come in.
- The third reason is you can provide better service with a cash-based practice. Your patient pool will expand because the middle and upper classes are willing to pay for better service.
- Jason shares his experiences with his primary care physician who’s part of a direct pay practice.
- Jason pays $70 a month which includes service benefits like being seen the same day, having a short wait time for appointments, and getting cost-effective generic prescriptions filled.
- Finally, the last reason for starting a cash-based practice is employers are looking to save money. Employee premiums are rising 6-7% annually and employers are eating this expense.
- One option employers are exploring is providing memberships to direct primary care and supplementing with catastrophic insurance.
- As a clinician, you can easily sell direct primary care to employers.
- Jason is considering offering a new course focused on cash-based practices. If you’re thinking about opening a niche practice, contact Jason to share the types of services you’d like to offer and other topics of interest. Contact info: jason@ketamineacademy.com.
3 KEY POINTS:
- You’ll have a massive amount of freedom as the owner of a cash-based practice.
- Because cash-based services are paid upfront, you don’t have to deal with revenue cycle management issues and can provide better service for your patients.
- Insurance premiums continue to rise so employers are looking into alternatives like memberships to direct primary care and cheaper catastrophic health insurance.
TWEETABLE QUOTES:
“A cash-based practice is where it’s at from the provider standpoint and the patient’s standpoint.” - Jason Duprat
“To me, it’s a no-brainer. Why wouldn’t you want to start a cash-based practice?” - Jason Duprat
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RESOURCES:
- Sign up for one of our free business start-up Masterclasses by heading over to https://healthcareboss.org/masterclass/
- Have a healthcare business question? Text me at 386-284-4955, and I’ll add you to my contacts. Occasionally, I’ll share important announcements and answer your questions as well.
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