It's called a boutique practice. My day job is as an ER nurse (while I finish my CS degree), and it's totally the way I'd go for my medical care if there was someone around that did this.
Some doctors with a boutique practice take a retainer fee plus bill insurance. Sounds like this guy is going the cash only route. I'm sure he'll end up making more money that way, regardless.
The average GP in NYC probably makes about 120,000 - 150,000. But they have to carry a 5,000-10,000 patient load while each patient gets 15 minute appointments. Some docs routinely see over 20 patients a day. This guy is charging a $500 retainer for two visits a year. That means that if he has 300 patients, he's making what a regular GP makes at an HMO. If each patient has two visits a year, that means that he can have 2 appointments a day and make the same amount as an HMO doc. That's his break even point. Anything over that, and it's gravy. I'm willing to bet that he has a 500 patient load. So, he's bringing in $250,000 net plus extra visits and appointments. So, by going cash only, he's probably making twice what an insurance doc would make.
This guy also does house calls only. So, he doesn't have the overhead that he'd normally have with an office--staff, office rent, equipment, etc... He doesn't have to hire billing specialists. He outsources all of his X-Ray and lab work, so no overhead there. And, he has an unofficial network of non-jerk specialists that he can refer people to that he likes working with.
I'm surprised that this hasn't caught on more than it has.
If you're his patient, look at his appointment schedule. He's giving people a half-hour to one hour time slots. And, he does a lot of his consultations over the wire, via IM, video chat and cell phone. He probably doesn't have to see his patients most of the time, and it's a lot easier for his patients to get in touch with him. His patients are happier and he has a much better quality of life.
I seriously doubt it. Doctors have always had gentleman's agreements to refer patients to each other, and then refer the patient back once the specialist is done.
The only kind of payola that I've ever seen after 14 years in health care are drug companies purchasing cruises/lovely dinners, etc... for doctors.
It depends on the type of doctor, and the type of service. For example, dentists and oral surgeons use referral kickbacks almost 100% of the time. I've seen xray specialists and open-MRI centers also offer doctors kickbacks.
It's obviously not seen in HMOs and in emergencies or in large hospital institutions, but in the private medicine arena, where this guy is solely practicing, it certainly is more common than you make it seem.
Some doctors with a boutique practice take a retainer fee plus bill insurance. Sounds like this guy is going the cash only route. I'm sure he'll end up making more money that way, regardless.
The average GP in NYC probably makes about 120,000 - 150,000. But they have to carry a 5,000-10,000 patient load while each patient gets 15 minute appointments. Some docs routinely see over 20 patients a day. This guy is charging a $500 retainer for two visits a year. That means that if he has 300 patients, he's making what a regular GP makes at an HMO. If each patient has two visits a year, that means that he can have 2 appointments a day and make the same amount as an HMO doc. That's his break even point. Anything over that, and it's gravy. I'm willing to bet that he has a 500 patient load. So, he's bringing in $250,000 net plus extra visits and appointments. So, by going cash only, he's probably making twice what an insurance doc would make.
This guy also does house calls only. So, he doesn't have the overhead that he'd normally have with an office--staff, office rent, equipment, etc... He doesn't have to hire billing specialists. He outsources all of his X-Ray and lab work, so no overhead there. And, he has an unofficial network of non-jerk specialists that he can refer people to that he likes working with.
I'm surprised that this hasn't caught on more than it has.
If you're his patient, look at his appointment schedule. He's giving people a half-hour to one hour time slots. And, he does a lot of his consultations over the wire, via IM, video chat and cell phone. He probably doesn't have to see his patients most of the time, and it's a lot easier for his patients to get in touch with him. His patients are happier and he has a much better quality of life.
Brilliant.