Physicians Embrace Cash-Based Payment Models: A Shift in Healthcare

Since healthcare is facing increased administrative burdens and declining reimbursement rates, physicians are rapidly turning to cash-only or direct primary care (DPC) models. This way, doctors can create a more predictable and sustainable revenue stream. According to Dr. Sam Patel, founder of Astra Culture, this approach can offer physicians better financial stability and less administrative stress. 

In such cash-based models, patients are required to pay an annual or monthly fee, and in return, they get access to a wide range of basic care services. However, this is not the same as concierge medicine, where patients use insurance for some services and pay for extra perks. The cash-based models simply cut out the insurance process, allowing a simpler and more direct healthcare approach, which benefits the doctor and patient.  

It makes sense as to why things are made simpler for the doctors, but why patients? Mainly because of clear pricing and quicker access. As discussed by Dr. Patel, he mentions that people are even willing to pay $300 for a same-day appointment, since they value their ability to see the doctor immediately and avoid insurance issues.  

But, such models also raise concerns as not all are able to afford to pay up front, therefore, inequality raises amongst the patients. Even though cash-based models have their advantages, the challenge is to ensure that everyone is able to have equal access to healthcare, regardless of their ability to pay. 

This marks to be a significant transformation in the healthcare industry, incentivizing both, patients and doctors – however, for the model to work successfully in the long term, there needs to be a balance between financial sustainability and equitable access to healthcare.