By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    healthy hobbies
    The Importance of Hobbies for Our Health
    September 15, 2024
    Whiplash
    Understanding Whiplash: A Guide For Healthcare Practitioners
    January 22, 2025
    research chemicals and health care
    Chemical Research Drive Medical Breakthroughs
    June 14, 2023
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Hospitals and Providers Using NHIN (Nationwide Health Information Network)
    March 11, 2012
    Image
    Physicians With High Productivity And Satisfaction Scores Employ Strong Patient-Centered Communication Skills
    May 7, 2013
    My Solution to the Healthcare Crisis
    March 31, 2012
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Physicians Cut Costs by Rejecting Insurance
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Physicians Cut Costs by Rejecting Insurance
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

Physicians Cut Costs by Rejecting Insurance

DanyellJones
DanyellJones
Share
6 Min Read
Cutting Healthcare Costs
SHARE

More Physicians Convert to Cash-Only Practices

Cutting Healthcare CostsRising healthcare costs have been the focus of healthcare reform for quite some time.

Contents
  • More Physicians Convert to Cash-Only Practices
  • More Physicians Convert to Cash-Only Practices
  • Examples From Around the County
  • The Pros and Cons

More Physicians Convert to Cash-Only Practices

Cutting Healthcare CostsRising healthcare costs have been the focus of healthcare reform for quite some time.  However, recently several physicians have begun rejecting insurance, opting instead for cash-based practices in what is heralded as a successful means of decreasing the cost of care.  There are some indications that this is a movement that is being explored more frequently by physicians.

According to a 2012 survey which was reported by the New York Times:

  • More than 50% of physicians stated that they would be taking steps to reduce patient access to services
  • 7% reported that they would be switching to a cash only payment model, and eliminating third party payers

A similar article by Sally Pipes on behalf of Forbes reported the following:

More Read

Image
More Physicians Entering Primary Care, But Not Enough
Pioneering Healthcare in Brazil
What Are the Current Trends in Accountable Care Organizations (ACOs)?
9 Warning Signs of Whiplash Injuries You Can’t Ignore
7 More Simple Secrets to Engagement, Action and Sharing
  • Direct Payment Practices have increased from 9.2% of all practices in 2001 to 12.4% of all practices in 2008

Examples From Around the County

Examples of physicians taking the leap to a cash-based practice are abounding around the country.

According to a recent blog post by Kristen Butler on behalf of UPI, a Portland, Maine physician has recently switched to the cash-only payment model, and as a result is seeing significant savings, offering appointments for as low as a $50.00 cash fee.  In the post Ciampi said, “I’m freed up to do what I think is right for the patients.”  Ciampi went on further to state that “if more doctors were able to do this, that would be real health care reform.  That’s when we’d see the cost of medicine truly go down.”

Similar examples are being reported across the country from Texas to Oregon.  In Oregon another report has rolled out citing that several practices covering services from dermatology to general practice have forgone the third-party payer route to opt for cash-paying patients instead.  One physician, Dr. Many Helman, stated, “I’m actually enjoying practicing medicine for the first time since I started the practice.”

This cash-based practice model is gaining momentum and appealing to more and more physicians who are looking to avoid complex and costly reimbursement processes currently in place via insurers, and who hope to gain more time with their patients and autonomy in the way that they practice.  Dr. John Dunlap, an Overland Park, KS Internal Medicine physician, states that the cash-based payment model “keeps me working for the patient.  I don’t have to answer to the insurance company first.”

The Pros and Cons

Cash-based physician visits may offer many pros for patients who enjoy longer visit durations with the physicians and upfront pricing that may be as low as 50% of the cost offered by practices that accept insurance.  Doctors are able to pass significant savings on to their patients by eliminating the overhead that is created in the third-party payment process, and are able to increase the time spent with patients due to not having to adhere to often strict time-based billing processes.  Despite this, there are still several potential drawbacks to increasing adoption of cash-based practices.

Roni Caryn Rabin of the New York Times poses the question, “Can the Affordable Care Act, intended to widen access to health care, succeed by expanding insurance coverage if primary care doctors are walking away from insurance?”

Currently access to healthcare is proving to be an imposing problem for reform, and one that is worsened due to the lack of physicians. If additional doctors and practices stop accepting certain patient segments, the pool of access may shrink even more. These issues were highlighted by the Medicare Payment Advisory Committee which recently reported that “adults ages 50 to 64 are having more trouble getting an appointment with a new physician” and 30% of those seeking a new primary physician in 2011 have reported problems with finding one.

Certainly navigating a solution that will provide high quality care, increased access, and considerations of both patients and physicians has proven to be a challenge.  In the face of healthcare reform, the fact that some physicians are stepping away from insurance is evidence that there is not one single solution to preparing yourself and your practice for the changes on the healthcare horizon.  With much of the ACA still speculative, and with debates flaring over whether cost efficiency in health care is possible through the ACA reform model, it is more important than ever that providers, practices, and hospitals examine their services, payment models, and care philosophies carefully in order to best position themselves in a rapidly changing climate.

TAGGED:cash-based practices
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

travel nurse in north carolina
Balancing Speed and Scope: Choosing the Nursing Degree That Fits Your Goals
Nursing
September 1, 2025
intimacy
How to Keep Intimacy Comfortable as You Age
Relationship and Lifestyle Senior Care
September 1, 2025
engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025

You Might also Like

medisafe
BusinesseHealthMedical InnovationsMobile HealthTechnology

MediSafe’s Custom Feed Creates Better Health Engagement, On the Go

November 10, 2014
Pay or Play
BusinessHealth ReformPolicy & Law

Play or Pay: The Triple Aim for 2015 and Beyond

June 16, 2014

Improving Clinical Workflow, Physician Satisfaction with Health IT

May 30, 2014

Can Long-Term Physician-Patient Relationships Be Bad For Your Health?

April 23, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?