Physicians embrace cash-based payment models

Becker's Healthcare December 23, 2024
Erica Carbajal

Amid shrinking reimbursement rates and growing frustrations with administrative burdens, more physicians are turning to cash-only or direct primary care models.

“We’re seeing a huge evolution of cash-based models because it’s a more predictable revenue stream that can be quite lucrative,” Sam Patel, MD, founder of medical consulting firm Astra Culture, told Medscape in a Dec. 23 report.

There is little data to offer firm estimates on the prevalence of direct pay models, though a Medscape survey from 2020 suggests they are used by less than 20% of clinicians.

In these arrangements, patients typically pay an annual or monthly fee for access to a set menu of care services. This differs from concierge medicine, where practices still...

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