Starting a direct primary care (DPC) practice can be a rewarding and fulfilling career choice for doctors, but it is not without its challenges. In this blog post, we'll explore some of the common reasons why DPC practices may struggle to get off the ground or fail to grow.
Lack of understanding of the DPC model
One of the biggest obstacles for DPC practices is a lack of understanding of the model among both patients and other healthcare providers.
Many people are not familiar with the concept of DPC, which operates outside of the traditional insurance-based system and instead relies on direct payment from patients. This can make it difficult to attract patients and build a sustainable practice.
In many communities, your DPC practice might be the first of its kind, which means that you have to teach everyone about what direct primary care is and why it matters. This can be a heavy lift!
Limited marketing and outreach efforts
Marketing and outreach are essential for any business, but they are particularly important for DPC practices that operate outside of the traditional healthcare system.
Without a strong marketing strategy, it can be difficult to generate awareness of your practice and attract new patients.
Specifically, your name is NOT on the back of anyone’s insurance card, so you will not get guaranteed business and you certainly can’t guarantee referrals.
If you’re a younger doctor and not established in the community as a trusted physician, you’ll have to lean heavily on social media or leverage traditional media. I teach these skills in our sales funnel course, here.
Failure to differentiate from other DPC practices
As the DPC model becomes more popular, the number of DPC practices is increasing. This can make it difficult for new practices to stand out and attract patients.
To be successful, it's important to differentiate your practice from others by offering unique services or a unique approach to patient care.
Even though you’re a primary care physician, it can be good to have a specific skill that you’re better at than any other physician in your community. Are you great with OMT? Great with Botox? Do you have a stellar grasp of functional medicine? Are you fantastic at helping patients lose weight? Or can you help patients reverse their diabetes?
Poor financial management
Starting a new business is always a financial risk, and DPC practices are no exception. Many DPC practices struggle with financial management, often due to a lack of understanding of how to price their services or how to manage cash flow.
It's important to have a solid understanding of financial management and to seek out professional guidance when needed.
It is important to note that you should focus on your strengths and delegate your weaknesses. For a lot of doctors, they process their business transactions via Quickbooks and have their accountant review those transactions monthly or quarterly. Many doctors also rely on an accountant for payroll. This is okay! It’s good to delegate these tasks that slow you down to someone who can do them quickly and seamlessly.
Lack of support from other healthcare providers
Many DPC practices struggle to gain support from other healthcare providers, such as specialists or hospitals.
This can make it difficult for DPC doctors to provide comprehensive care for their patients and can limit the growth of the practice.
For example, if you’re in a small town and your local hospital won’t give a cash price for imaging services, it can be difficult to save money/provide value for your patients in the community.
In conclusion, starting and growing a DPC practice is a significant undertaking that requires careful planning, a solid understanding of the DPC model, and a willingness to overcome challenges. By understanding the common reasons why DPC practices fail, doctors can be better equipped to navigate the unique challenges of this model and build a successful and sustainable practice.
That’s why I strongly recommend our most popular course, our How to Write a Business Plan for your Direct Primary Care practice course - it helps you avoid many of the above pitfalls and it can help to ensure that you have the best chance possible at a successful Direct Primary Care practice!
Good luck, and take action today!
-Dr. Paul Thomas with Startup DPC