I met with a dental surgeon last week who stopped accepting insurance coverage for his patients 18 years ago. Why did he make that decision? He had found that:
- Insurance reimbursement rates declined every year without regard for persistently rising costs
- No matter what insurance coverage there was, inevitably a sizeable gap remained which the patient had to cover
- The administrative costs associated with billing, collecting and communicating with insurance companies were growing exponentially
- This surgeon has built a successful practice which is very highly rated by patients, yet in the past few years he’s noticed a decline in business. He’s also noticed that competitive pressures are causing a lowering of his profits on each procedure. So, he decided to sign up with CareCap.
His specific circumstances are:
- He carries no receivables at this time, nor does he bill insurance
- He currently captures 30% of the patient consults he performs. He knows some people opt for lower prices with other surgeons, and he believes many people delay treatment because they can’t pay in advance –which is his current policy
- His driving motivation for offering CareCap is to improve his capture rate. He sees the value of allowing some patients to finance treatment using CareCap. His first choice will remain for the patient to pay for their treatment up-front, but if they indicate that they will not proceed with treatment, rather than see them defer the care they need, he will offer CareCap as a means to extend payment terms.
Bottom line, to this surgeon, CareCap offers an easy solution to building revenue.
About the author: Nevil Hermer is CareCap’s CEO. He is a keen student of the changes in the healthcare market and resulting financial implications that impact medical practitioners and their patients.