The Future of Private Practice

09.02.21 06:27 AM By Provider First

We can watch it happen or do something about it

You want to be in private practice. The flexibility. The autonomy. In theory the money is better.  And along comes this company claiming they'll take care of the marketing, the credentialing, and the billing. All you need to do is see clients and they'll take care of the rest. They even pay you better than you were getting on your own through insurance. Wow. Sounds good. Really good.


Too good to be true? Yes, it is.


Sure, the rates are great… for now. Did you read the fine print of the contract? They have the right to adjust the rates whenever they choose. So, they raise 25, 50, 100 million dollar rounds of venture capital money, pay big referral fees to grow their network, and pay out so much of the fees they get from insurance that they actually lose money at first - often for years even - just to get market share.  It 's quiet literally happening right now:


     






Over time, though, as competition for providers and clients alike gets fierce, those rates will change. They'll pay you a little less, take a little more, crack down on whether you use 90837 instead of 90834 to control costs (sound familiar?).   The worst part is that it's not even really your practice, is it?  Think about it. They have the client contact info, they control the billing information, they own all the software you're using, they even own your contract with the insurance company.  If you leave the amount the insurance company pays you gets cut in half… for the exact same hour of care.  Does that sound like the practice of your dreams? 


That whole scenario above assumes the company doesn't get sold. It's understandable if you've not thought this far ahead.  You're in private practice not private equity.  The fact is though, all of the companies mentioned above have the same ultimate master - profit.  They are legally obligated to make their investors money.  To do that, they need an "exit", which is another way of saying they will sell the company eventually.  Then, the new owners will buy it and try to double or triple the amount they make.  How do you think they will do that?  Are the clients willing to pay 2 or 3 times what they currently pay? No.  Will insurance increase they payout rates by 2 or 3 times?  No.  Could they increase their share of the session fee from $10 to $20 or maybe even $30?  Yes. They can and they will.


So what can you do?  


Good Place offers an alternative. 


One where you, the provider, get to benefit from this system. Where you, the provider, walk away with a fair share of the profits derived from your labor.  


Where the company does eventually get sold... to you.


Providers may not be able to change the system, but they can join together and beat the system at it's own game.


So, will you join us?


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