Direct Primary Care (DPC) is a new trend in American healthcare with lots of potential.
In a Direct Primary Care arrangement, an employer contracts
directly with a Primary Care Provider (PCP) to provide primary care for all of
its employees. PCP’s are typically paid
a Per Employee Per Month (PEPM) fee instead of being reimbursed in a fee-for-service
model. This arrangement is often
attractive to both parties for a couple of reasons:
- The PCP receives steady, guaranteed revenue and has an incentive to keep the employees healthy. There is no incentive to rush through visits and bill more.
- The employer can assure employees they have found and vetted a quality PCP to meet their needs. The employer knows the PCP has no incentive to overbill and in fact has every incentive to keep employees healthy.
Beyond these major benefits, employers are also seeing major
benefits to this model from eliminating conflicts of interest a PCP within a
large hospital system may have.
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