There are many reasons you might want to consider converting your practice to the concierge care model. After all, a medical concierge practice offers you and your patients several advantages. These include more face time with the people you treat, less red tape and fewer restrictions on the type of treatments you can provide.
However, as you review your options, there may be some considerations that are keeping you from jumping into the transition with both feet. Perhaps one of the most important of these is the cost of concierge medicine for your practice.
If you’re wondering, “How much does concierge medicine cost for my practice to convert?” it’s important to look at all the angles. Although the process isn’t without costs, the potential benefits can more than outweigh them. Here are some things to keep in mind as you plan for your transition.
Do the Math
When it comes to determining the cost of offering custom medical charges for your patients instead of relying on insurance reimbursements, it’s good to keep the numbers in context. Under the traditional model, the average physician performs more than 6,000 work relative value units (wRVU) per year, with an average reimbursement of about $83 per wRVU. That comes out to approximately half a million dollars in annual revenue.
On the other hand, a concierge physician charges patients a retainer fee, with the average amount coming to about $1,800 per patient per year. The typical concierge practice at 80% capacity has nearly 325 patients total, which translates to $665,000 in revenue every year.
Breaking Down Your Costs
Now that you see how beneficial making the switch could be for you, you still need to be aware of how much converting to concierge medicine can cost. Not all circumstances are the same, of course, but here are some of the most common expenses you can expect in order to make a successful transition:
- Rebranding: Your new practice will likely need a new identity to mark the changeover and attract new clientele. This typically involves market research and data analysis from an outside consultant. Once you settle on your new look and concept, you’ll need to invest in marketing materials as well as a new website and social media presence. For the initial consultation, you can expect to spend around $10,000. Promoting your rebranded identity could cost you an additional $10,000 to $12,000 in most circumstances.
- Restructuring: Adopting a new business model means you will need to restructure the way your office works. This could mean reducing your staff, transitioning existing employees into new roles and ensuring you’re compliant with all the necessary regulations. If you terminate any employees, you will need to pay unemployment insurance. You also need to create a contract template for new memberships. All in all, this process could cost you roughly $10,000.
- Announcement and Rollout: Once you have all the other preparations taken care of, you’ll want to have a meeting with your existing patients to announce the changeover. This may involve arranging for a venue, printing announcements, providing food and beverages, etc. Like any other type of event, this could cost you a few thousand dollars.
No matter how much your conversion ends up costing you, nothing is as expensive for you as failure. Specialdocs Consultants has helped numerous practices make the switch to concierge medicine, and we can leverage our experience and expertise to ensure the process goes as smoothly for you as possible. We can help you with every aspect of the transition, from explaining it to your patients to making changes to your office. To learn more about what we can do for you, get in touch with us today and take your first step.
Interested in learning more about the Specialdocs’ Concierge Practice model?
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