The retainer-based element of concierge medicine has made it an attractive business model for a growing number of medical practices across the U.S. But could concierge services be a viable option for hospitals?
According to Russ Alan Prince, president of consulting firm R.A. Prince & Associates, the answer is yes.
Concierge medicine is mostly utilized by physician practices and smaller medical institutions. It has emerged as a preferred option for wealthy consumers because it allows them "expedited access to high-caliber physician talent," Mr. Prince wrote in a recent Forbes article. However, he believes the cash-based business model will be increasingly incorporated into hospitals for its ability to "mitigate the financial pressures felt by a solid percentage of physicians and medical institutions."
Here are three reasons hospitals will begin offering concierge medical services, according to Mr. Prince.
1. A concierge business model could yield hospitals parallel economic benefits to those realized by physician practices. It can enable them to maintain a positive financial position, or allow them "to run faster in order to stay in place," Mr. Prince wrote.
2. Central to the concept of concierge medicine are the combined benefits of ultra-convenience and superior medical care. Hospitals' ability to offer state-of-the-art medical assessments and therapies, as well as their increasing adoption of telemedicine will "significantly expand [their] potential to attract wealthy patients," according to Mr. Prince.
3. "Presently, concierge healthcare is one of the relatively few financially vibrant areas in the practice of medicine," Mr. Prince wrote. Many hospitals will be driven by necessity to incorporate concierge medical services to bolster their finances and cultivate a population of wealthy and loyal patients.