• Adam Kae & Associates

Why You Should Dump Insurance Companies

Updated: Sep 28, 2020

Switching to a Cash-Based Practice


Why You Should Dump Insurance Companies

Switching to a Cash-Based Practice



Yes, Seriously. Dump Them. We know breakups can be hard, though!


Here at Adam Kae & Associates, we strongly believe in keeping more money in your pocket. One way to do this is by switching to a cash-based practice. There are a few different names and models for these including cash pay, subscription medicine, direct primary care, concierge medicine, and more.


Think of it as a “direct to supplier” model. It works for Netflix, Amazon, Patreon, and countless other types of businesses. Why can’t it work for healthcare, too?


It’s no secret that healthcare is a hot topic in the United States today. Cutting out insurance companies may be the key to putting health back into patient and doctor hands!


Let’s keep going…


How it Works


We like to think of it like a medical club. Your patients are members of your practice, and as long as they pay for a membership, they can come see you as needed.


Develop More Intimate Doctor-Patient Relationships


These types of practices have fewer patients, so you can get to truly develop a relationship with your patients to become their dedicated health ally. How often have your patients sat for hours in the waiting room because appointments are backed up?


A cash-based practice could help eliminate those issues!


According to Healthline, direct primary care doctors spend at least 20 minutes per patient in a cash-based clinic. Insurance-based clinics typically average only 10-15 minutes per patient. Hooray to getting to know your patients beyond their chart!


Cash-based practices could potentially be cost-effective for your patients, too! The John Locke Foundation says that the average monthly payment for a cash-based practice is between $24-$85 per month. Imagine creating a group of physicians joining your medical minds together to provide amazing healthcare to patients for only $85 per month!


Why YES


Let’s start on the positive side - here are some reasons why cash-based is fantastic for the future of medicine!


Depending on Your Type of Practice, It May Just be Easier


Forbes said in 2013 that 1 in 10 doctors are switching to a cash-based practice! Since then, there hasn’t been significant publishing in what the numbers are today, but it continues to be a growing trend as practitioners see the advantages.


If you live in a high-income area + you’re a specialist where patients typically pay out of pocket - you’re already serving a small group of people.


Let’s take insurance reimbursements out of the equation, so you can get paid ASAP! No insurance also means no insurance notes. Feel free to document in a way that works best for you!


This model also has the ability to be 100% transparent. No need for multiple billers and coders. You can eliminate overhead and reduce your billing process.


Insurance companies can be iffy about house calls, but you can easily offer this in a cash-based system! Once again, it truly depends on your 1) type of practice 2) your patients 3) the demographics in your area


Save Your Patients from the Monotony


We’ll say it - we’re tired of searching through badly designed insurance websites to find a doctor that takes our insurance. With a cash-based practice, you’re 100% in control of who you market to!



Okay… How Do I Do This?


Dumping your insurance company may seem a bit intimidating.


Adam Kae & Associates can help determine if this method is right for your practice and help you through your breakup. Think this might be a path for you? Let’s chat over a complimentary consultation - Schedule Yours HERE



When This Might Not Be Right


We understand. You’re in a committed relationship with your insurance company, and it might be a perfectly healthy one!


You Need to Serve Your Patients


Demographics matter here. If you serve a community where many patients are on Medicare or Medicaid, you won’t be able to 100% convert to cash based. Some areas also simply don’t have enough doctors for enough healthcare to go around.


Solution: Do your research (or have us do it for you!) Also, consider partnering with other firms or creating programs for patients depending on their different needs.


You’ll also be missing out on free marketing exposure from insurance companies. So, you may have to invest more to market your practice.


Solution: Hire a marketing coordinator! Adam Kae also offers unlimited recommendations to our vetted professionals. These are people we’ve worked with over the years, and they can help you create a marketing strategy to continue bringing in a steady stream of patients.


Insurance companies have policies to ensure healthy medicine is practiced, and some oversight disappears when doctors are 100% dependent.


Solution: Implement and publish your care guidelines that align with your insurance company’s standards. Once your patients see that you hold yourself to the same standard of care, they will feel more comfortable saying yes to this insurance-free method!


Your Patients May Pay Higher Prices


Solution: Again, research demographics!




Conclusion


At the end of the day, cash-based practices are a revolutionary new system of delivering healthcare. Breakups can be hard, but dumping insurance companies may unlock more opportunities than you could have ever imagined for your practice!


Our goal is to help you make money and save money. Let’s have a complimentary 1-on-1 Call today to see if cash-based is right for you! Schedule HERE.



Too much to read? Check out this infographic:






Resources

Thinking of starting a cash-based practice? Here are the pros and cons.

1 in 10 Doctor Practices Flee Medicine to Concierge Medicine

These Doctors Accept Only Cash

2018 Healthcare Trends Part 2: Cash-Pay Practices will Grow









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Disclaimer: This article contains information and opinions from Adam Kae & Associates, and the information and opinions should not necessarily be seen as the best possible solutions for your business. Please contact us at info@adamkae.com to help you find the best solutions for your business.


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