Project Research Unit 9


Unit 9 Assignment Concierge Care Backgrounder

You are the administrator of a small primary care practice that is owned and operated by two physicians. The practice is located in a relatively affluent bedroom community, which is a short commute to a major city. Although the clinic is for-profit, twice annually it provides free vaccinations to an uninsured population that live in the adjoining county.

One of the two principals, Dr. Green, has worked as a physician in the community for 30 years. He enjoys treating his patient base, yet he concedes that he is tired of practicing what he refers to as “assembly line medicine.” He has seen a lot of changes in the field over the past years and is very concerned that public and private reimbursements will further shrink. Apart from the two physicians, the practice currently employs three medical assistants and you, the office manager. Dr. Green feels that the practice needs to hire additional help, perhaps a couple of mid-levels, but he is not sure that revenues will support that expansion. The physicians currently share a patient census of more than 5,000 and, of those, approximately 40% are Medicare patients.

The younger of the two physicians, Dr. Jones, who has a very young family and will be paying back a very large student loan for another six years, recently attended a seminar on converting a practice to concierge care. He came back to the office very excited about the idea, particularly since he recently met the CEO of a large company who expressed a very strong interest in entering into a contract for the practice to provide concierge care to her most senior 50 executives. Between the amount paid by the company and personal contributions made by each senior employee, a guaranteed annual total of $3,000 per employee would be paid to the practice.

Dr. Jones thinks this would be a great start toward converting to a concierge care business model, and he is concerned that if they do not quickly pursue the opportunity, the other two primary care practices in town will compete for the business. Dr. Green agrees that the idea is appealing, particularly since he knows that some of their current patients could afford to sign up for concierge care services, but it is a big decision and he is hesitant to jump onboard. He has asked you to urgently investigate the options.

In the meantime, the small temporary help agency that is located next to the doctors’ practice is moving out. The landlord called you today to offer preferential lease terms on this adjoining space, which would allow the practice to increase its area by about one-third for the next 5 years.


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