{"id":740,"date":"2017-04-24T17:40:26","date_gmt":"2017-04-25T00:40:26","guid":{"rendered":"https:\/\/blog.sprucehealth.com\/?p=740"},"modified":"2023-10-26T06:13:34","modified_gmt":"2023-10-26T13:13:34","slug":"landing-dpc-employer-contracts-part-2-getting-employers-see-value-dpc","status":"publish","type":"post","link":"https:\/\/sprucehealth.com\/blog\/landing-dpc-employer-contracts-part-2-getting-employers-see-value-dpc\/","title":{"rendered":"Landing DPC Employer Contracts, Part 2: Getting Employers to See the Value of DPC"},"content":{"rendered":"<p>There\u2019s nothing that can take your direct primary care (DPC) practice to the next level like landing an employer contract, but they can seem overwhelming to negotiate. In this five-part blog series, join me as we cover the most fundamental aspects of finding, engaging, and closing deals with businesses of all sizes to get them promoting your DPC clinic as part of their employees\u2019 healthcare.<\/p>\n<p>In this second\u00a0part, we&#8217;ll cover\u00a0what it means to provide value to employers and how you can best convince them that the DPC model will improve their employees&#8217; health while saving money for everybody involved. The final three\u00a0parts of the series will follow soon, but if you don&#8217;t want to wait, you can download\u00a0our full ebook on DPC employer contracts\u00a0right now: &#8220;<a href=\"https:\/\/sprucehealth.com\/blog\/download-secrets-direct-primary-care-5-keys-landing-employer-contracts\/\">Secrets of Direct Primary Care: 5 Keys to Landing Employer Contracts<\/a>.&#8221;<\/p>\n<h1>Key #2:\u00a0Be Able to Show How You Provide Value<\/h1>\n<p>You know the DPC model and why it&#8217;s attractive, but many businesses will not. Because of this, you should make it a top priority to be able to articulate lucidly the ways in which your practice can provide value to a patient population, and you should also know how that value varies with the payment system in which those patients exist.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright wp-image-745 size-medium\" src=\"https:\/\/sprucehealth.com\/blog\/wp-content\/uploads\/2017\/04\/blog_img_asset-205x300.png\" alt=\"\" width=\"205\" height=\"300\" srcset=\"https:\/\/sprucehealth.com\/blog\/wp-content\/uploads\/2017\/04\/blog_img_asset-205x300.png 205w, https:\/\/sprucehealth.com\/blog\/wp-content\/uploads\/2017\/04\/blog_img_asset.png 332w\" sizes=\"(max-width: 205px) 100vw, 205px\" \/><\/p>\n<p>Primarily, you can show value to a potential employer partner by being either cheaper or better (preferably both, of course). You can control the &#8220;better&#8221; aspect of your services fairly easily, but it&#8217;s important to remember that you may not be able to make care cheaper for every business. Whether an employer is &#8220;self-funded&#8221; or\u00a0&#8220;fully insured&#8221; will have an especially large impact on this latter point, and you can\u00a0check out\u00a0<a href=\"https:\/\/sprucehealth.com\/blog\/landing-dpc-employer-contracts-part-1-understanding-self-funded-fully-insured-employers\/\">our\u00a0first article in this DPC employer contract series<\/a>\u00a0to learn more about\u00a0the crucial difference between the two.<\/p>\n<p>According to Dr. John Birky of <a href=\"http:\/\/www.wellspringfamilyhealthcare.com\/\">Wellspring Family Healthcare<\/a>, a DPC practice in Kansas, &#8220;self-funded employers really get the DPC model. I&#8217;ve talked with smaller, fully insured employers, too, and there&#8217;s growing interest, but they just don&#8217;t have the same financial incentive to do it yet. Interest is growing, though.&#8221; Megan Freedman of the <a href=\"https:\/\/fmma.org\/\">Free Market Medical Association<\/a>\u00a0agrees: &#8220;It&#8217;s hard to get a good return on investment for a place that&#8217;s fully insured. DPC doctors really need to go after self-funded groups, mostly.&#8221;<\/p>\n<p>With this in mind, make sure that your go-to talking points for your practice include compelling items to show that you&#8217;re both better and cheaper in a variety of ways. Examples to get you thinking:<\/p>\n<h2>Better Care with DPC<\/h2>\n<ul>\n<li>Same-day appointments<\/li>\n<li>Longer appointments (e.g., 30 minutes instead of 10)<\/li>\n<li>Greater doctor and clinic accessibility (e.g., direct numbers, after-hours or weekend availability)<\/li>\n<li>Better technology (e.g., patient smartphone apps for convenient, secure texting and telemedicine)<\/li>\n<li>Other possible benefits, depending on your practice:\n<ul>\n<li>In-office pharmacy<\/li>\n<li>Low-priced connections for lab testing and imaging<\/li>\n<\/ul>\n<\/li>\n<li>Incentive structure is aligned to keep focus on preventive medicine and maintaining health<\/li>\n<li>Reductions in unnecessary lab testing, imaging, and procedures<\/li>\n<li>Improved health outcomes (and therefore a healthier, more productive workforce)<\/li>\n<li>~50% lower hospital admission rate and ~90% reduction in hospital bouncebacks<br \/>\n(2012 AJMC study of MDVIP)<sup>1<\/sup><\/li>\n<li>Ability to refer to other like-minded upstream providers instead of big hospital systems (can save significant money on imaging, outpatient surgeries, and other non-emergency treatment)<\/li>\n<\/ul>\n<h2>Cheaper Care with DPC<\/h2>\n<ul>\n<li>Mostly relevant to self-funded employers:\n<ul>\n<li>Reductions in lab testing, imaging, specialist visits, and procedures equate directly to cost savings<\/li>\n<li>Internal Qliance data show imaging reductions of ~30\u201360%, specialist visit reductions of ~14\u201366%, and surgery reductions of ~70\u201380%, culminating in $679 saved per patient per year (20% total cost reduction)<sup>2,3<\/sup><\/li>\n<li>Healthier population is less costly<\/li>\n<li>2012 AJMC study of MDVIP found $2,551 savings per patient per year from reduced hospitalization<sup>1<\/sup><\/li>\n<li>Can use the new partnership between New Jersey and R-Health to offer DPC options to state employees as &#8220;social proofing&#8221; evidence that DPC is respected and on the upswing as a high-quality, cost-effective solution for self-funded organizations<\/li>\n<\/ul>\n<\/li>\n<li>Relevant to any type of employer:\n<ul>\n<li>Healthy employees miss less work<\/li>\n<li>When a DPC patient does have a minor illness or other medical issue, their doctor can often handle it via phone or telemedicine without the need for an in-person visit. Contrast this against the incentive structure in a typical fee- for-service practice, in which an in-person visit is almost always required for billing. Travel time alone for a typical outpatient visit is 37 minutes.<sup>4<\/sup><\/li>\n<li>Many employees with high-deductible health plans still avoid care or are subject to large bills until their deductible is met. A DPC membership can be very cost-effective for these patients, given that most care needs are primary care needs.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h1>Know Your Value and Spread the Word<\/h1>\n<p>Every DPC physician I&#8217;ve spoken with has told me that they picked\u00a0the DPC model\u00a0because they truly believe that it can be better for doctors, patients, and the healthcare system in general. In medicine, we don&#8217;t typically love change, so the emergence of such a strong new sentiment is\u00a0a compelling indicator that a true source of value has been found.<\/p>\n<p>When the incentives align correctly, it can be straightforward to convince\u00a0employers of this value, too, even if\u00a0it may never be simple. The key is to spend time really understanding\u00a0your own clinic and business. Identify\u00a0which of your value points\u00a0will be attractive to different\u00a0types of patients (or employers), and then be ready to share those benefits with decision-makers when the opportunity\u00a0arises.<\/p>\n<p>Feel free to use the lists here\u00a0to get started with your planning, and if you have identified\u00a0other DPC advantages, please share them with us in the comments below! We&#8217;re always looking for more. DPC can be potentially advantageous\u00a0for\u00a0nearly any type of employer, but it&#8217;s not a one-size-fits-all formula;\u00a0don&#8217;t get caught flat-footed when its time to communicate\u00a0how great\u00a0you and your clinic are.<\/p>\n<hr \/>\n<p>Once you understand\u00a0the different types of employers and have formulated\u00a0your value pitch for each of them, you&#8217;ll be ready\u00a0to start interacting with\u00a0actual companies. Join us\u00a0next time, in part three of this series, as we tackle <a href=\"https:\/\/sprucehealth.com\/blog\/landing-dpc-employer-contracts-part-3-find-engage-self-funded-employers\/\">how to find and engage some of your best potential partners: self-funded employers<\/a>!<\/p>\n<p>Or, if you\u00a0don&#8217;t wait to wait, get our full ebook on DPC employer contracts right now: &#8220;<a href=\"https:\/\/sprucehealth.com\/blog\/download-secrets-direct-primary-care-5-keys-landing-employer-contracts\/\">Secrets of Direct Primary Care: 5 Keys to Landing Employer Contracts<\/a>.&#8221;<\/p>\n<hr \/>\n<p><strong>References:<\/strong><\/p>\n<ol>\n<li>Klemes, A. <em>et al<\/em>. <a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pubmed\/23286675\">Personalized preventive care leads to significant reductions in hospital utilization<\/a>. <em>Am. J. Manag. Care<\/em> <strong>18<\/strong>, e453\u201360 (2012).<\/li>\n<li>Wood, S. M. <a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pubmed\/22950181\">The medical home bends cost curve<\/a>. <em>Benefits Q<\/em>. <strong>28<\/strong>, 20\u201324 (2012).<\/li>\n<li>Qliance. <a href=\"http:\/\/www.prnewswire.com\/news-releases\/new-primary-care-model-delivers-20-percent-lower-overall-healthcare-costs-increases-patient-satisfaction-and-delivers-better-care-300021116.html\">New Primary Care Model Delivers 20 Percent Lower Overall Healthcare Costs, Increases Patient Satisfaction and Delivers Better Care<\/a>. <em>PR Newswire<\/em> (2015). (Accessed: 7th March 2017)<\/li>\n<li>Ray, K. N., Chari, A. V., Engberg, J., Bertolet, M. &amp; Mehrotra, A. <a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pubmed\/26295356\">Opportunity costs of ambulatory medical care in the United States<\/a>. <em>Am. J. Manag. Care<\/em> <strong>21<\/strong>, 567\u2013574 (2015).<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s nothing that can take your direct primary care (DPC) practice to the next level like landing an employer contract, but they can seem overwhelming to negotiate. In this five-part blog series, join me as we cover the most fundamental aspects of finding, engaging, and closing deals with businesses of all sizes to get them promoting your DPC clinic as part of their employees\u2019 healthcare.<\/p>\n","protected":false},"author":1,"featured_media":749,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Landing DPC Employer Contracts, Part 2: Getting Employers to See the Value of DPC - Spruce Blog","description":"There\u2019s nothing that can take your direct primary care (DPC) practice to the next level like landing an employer contract, but they can seem overwhelming to neg"},"footnotes":""},"categories":[28],"tags":[29,30],"different-template":[],"class_list":["post-740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-direct-primary-care","tag-direct-primary-care","tag-dpc"],"acf":[],"_links":{"self":[{"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/posts\/740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/comments?post=740"}],"version-history":[{"count":0,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/posts\/740\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/media\/749"}],"wp:attachment":[{"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/media?parent=740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/categories?post=740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/tags?post=740"},{"taxonomy":"different-template","embeddable":true,"href":"https:\/\/sprucehealth.com\/blog\/wp-json\/wp\/v2\/different-template?post=740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}