There are currently more than 1,400 direct primary care practices operating in 49 states. Among them are doctors Lee Gross and William Crouch at Epiphany Health Direct Primary Care in North Port, Florida. They charge just $75 a month for an adult, $30 per month for one child, and $15 a month for each additional child. After that, nothing more is owed for services provided in the office—no health insurance necessary. In January, Reason‘s John Osterhoudt visited Epiphany and spoke with Gross about what free market health care should, and can, look like.
This is from John Osterhoudt, “What Free Market Health Care Would Actually Look Like,” Reason, July 2021.
This particularly interests me because my primary care doctor announced last month that he’s retiring in September. When I started with him 6 years ago, I asked him if he would guarantee to stay in business for at least 5 years. He kept his word. I didn’t realize it until he became my doctor, but he’s the first really good primary care doctor I’ve ever had. His practice has 3 people: him, his nurse (who’s also his wife), and his office assistant. It’s fee for service and he’s not in my health insurer’s network, but the extra charge for me is only about $30 per visit. And he listens and takes time.
So I’m looking around for another doctor and this article in Reason caught me eye.
Another excerpt that answers something I was wondering about:
What can you do in the office? Can you give me a range of what is included in that $75-a-month fee?
Once a patient is a member of our practice, anything that we can do within the four walls of our office is included at no additional charge. That would include things like electrocardiograms (EKGs); 24-hour heart monitors or Holter monitors; minor procedures like taking off a small skin cancer. I can do biopsies and joint injections, we can remove moles and sew up lacerations. I can splint uncomplicated fractures. Most tests that we do within our office, like a strep test, urine test, or pregnancy test, those are all things that we do at no additional charge.
And something else I was wondering about when I see the charges for blood work before the insurer knocks them down:
For example, the very first patient that I enrolled in our direct primary care practice, they went to see their rheumatologist, and the rheumatologist gave them a lab order. The lab quoted them $1,800 for the blood work. The patient got on the phone and said, “Wait a second, I can’t afford this. I thought I was supposed to get some sort of discount by being a member of your direct primary care practice?” We said, “Well that order has to come through us, and you have to pay us for it, because we buy labs wholesale.” That patient was able to get the same exact labs at the same exact facility for $85. So with the savings on a single lab test, that patient paid for [months and months] of membership in our program.
And, completely unrelated, another hopeful sign:
35 years ago, it was illegal in 16 states (including Texas) for a civilian to carry a concealed weapon. Only Vermont did not require a pistol permit.
Working through the slow process of going state to state to change the law, the revolution happened.
First came the switch from no permit to may permit. That placed the decision on issuing permits in the hands of elected sheriffs, which explains why California and New York have not budged. Democrat sheriffs pocket a lot of money from patrons who want to carry.
Then came shall permit. This put the onus on law enforcement to show why a person should not carry a concealed weapon.
Finally, came freedom. 19 states no longer require the state’s permission to carry a concealed weapon.
Texas and many other states went from red (a ban on concealed carry) to yellow (may issue) to blue (shall issue) to green (no permission necessary).
It is the Vermontization of America. The Green Mountain Boys always put the right to firearms off limits to regulation. Interesting state. For 14 years, it was a republic — longer than Texas and other states that were republics for a time.
This is from Don Surber, “The gun revolution,” June 18, 2021.
About 15 years ago, some students at Hillsdale College invited me to give a talk there. I did. I think my talk had more than a touch of “ain’t it awful?” as I listed the various relatively new restrictions on freedom in America: the USA Patriot Act, the requirement of government permission before you get on a commercial aircraft, and a few other things.
In Q&A, a student asked me if I could think of any area in which freedom had increased in the last decade or so. Always wanting to be the glass half-full person, I thought hard and told him that I couldn’t. But my friend Harry Watson was in the audience and he piped up with a major one: the increasing freedom in many states to carry a gun.
READER COMMENTS
Alan Goldhammer
Jun 20 2021 at 7:13pm
Wow is all I can say!! All of the primary care docs in the Bethesda MD area are either retiring or changing over to concierge practices. My internist is part of a 10 person practice and they are closing at the end of July and reopening with concierge service. The fee is $1800 but that is just the membership fee and does not include any visits. What you are guaranteed is same day appointments in return for the fee. It was a difficult choice for me but I signed up as I did not want to go doctor shopping again. Most of my friends who live in metro areas say the same thing is going on in their areas.
I wonder what the break even point for the practice mentioned in the article is. $75/month seems too low but perhaps their cost of business is much less than it would be in our area of Maryland.
David Henderson
Jun 20 2021 at 11:48pm
Amazing isn’t it? I could have believed $125 per month.
But thinking about it, if they charge $75 per month, that’s $900 per year. One doctor years ago told me that a typical non-pediatric doctor will have between 2,000 and 2,500 adult patients. Take the low end: 2,000. That’s $1.8 million to play with.
Alan Goldhammer
Jun 21 2021 at 8:18am
That’s a lot of patients if they are all in the practice at the same time. What type of waiting time is there to get an appointment. The case you cite is a two doc practice that does a lot of different things. I wonder how much time they actually spend with each patient. This is one of the things concierge medicine is supposed to address (I’ll know after my doc changes over this August).
Scott Sumner
Jun 20 2021 at 7:30pm
I wish I could be hopeful for a free market in medicine, but I just don’t see any possibility that we’ll have the massive deregulation necessary to create a free market.
David Seltzer
Jun 23 2021 at 2:22pm
Scott, alas I agree. Two and a half years ago, I had a state of the art total hip replacement. Forty minute procedure, no cutting or retracting muscle and home, walking the same day. The surgeon billed the insurance entity $47,500. They settled for $23,000. I asked the surgeon what he would have charged if I had no insurance. He said between $5000 and $7500 and he would work out a payment plan. His restrictions, according to him, certificate of need laws, state licensure and a third party between physician and patient. In the free market case, I suspect the demand for healthcare services would be far more elastic.
Jerry Brown
Jun 20 2021 at 9:43pm
Lately, there has been an increased freedom about marijuana in many states. I can’t think of many other things either. Well maybe I don’t have to visit the Department of Motor Vehicles in person quite so often. That was always a nightmare. And we can buy alcohol on Sundays now in Connecticut, which I find useful occasionally.
Evan Sherman
Jun 21 2021 at 10:22am
This article highlights the inadequacy of the categories commonly deployed in the healthcare debate – especially in the quasi-intellectual pop-journalism spheres. Often we represent healthcare policies as variations of 3 basic models: 1) Some kind of state 3rd party single-payer system 2) Some kind of highly regulated insurance company 3rd party payer system (basically the status quo) 3) A wild west in which the patient (consumer) always pays full sticker price for each individual service.
There are a lot of free market variations besides (3), though, and I feel like this article presents the subscription model as a compelling variation. The problem with patients paying full price per service in the health care market is the inelasticity of demand when it comes to healthcare products; people might be horrified by high prices but feel compelled to pay anyway. Doubling down on the patient-provider subsription model seems like it take some more of the bite out that problem while still providing the benefits of free-market competition (cutting down on misaligned 3rd party intermediary interests, cutton down on 3rd party intermediary rent-seeking as a cost-driver, etc.)
robc
Jun 21 2021 at 10:44am
The combination of subscription primary care, catastrophic insurance plan, and an HSA pretty much solves health care issues are relatively low cost.
And the thing is, government solutions for the poor can work within that model pretty easily.
Government clinics, subsidized or paid for catastrophic insurance, and subsidized HSA deposits are all doable. I bet it would be well more efficient than medicaid/medicare.
Evan Sherman
Jun 21 2021 at 11:38am
For catastrophic coverage: What if, instead of subsbribing to coverage via a 3rd party insurance provider, the consumer could subsribe to a catastrophic coverage plan directly with providers? I do agree that catastrphic coverage of some kind is essential in the life-is-at-stake healthcare market, but I wonder if using 3rd party insurers makes it less efficient than it could be.
I get that this article centers on primary care consumer-provider subscriber models, but it’s not obvious to me that this model should only apply for primary care.
Michael Sandifer
Jun 21 2021 at 9:14pm
How is the right to carry firearms a good thing?
robc
Jun 22 2021 at 11:34am
How is it not?
Peaceful people should be able to possess any tool they desire and can afford.
Michael Sandifer
Jun 22 2021 at 3:10pm
lol Should “peaceful” people be allowed to own M1 tanks? How about nuclear weapons? Is there a place you draw a line?
David Henderson
Jun 23 2021 at 9:51am
Michael, I apologize for taking so long to respond. I just noticed this.
You ask:
I think it’s good in two ways. First, it’s important that governments adhere to the Constitution. Second, the ability to carry firearms is a strong deterrent to those who would harm innocent people. It’s a longer discussion, but notice that a disproportionate number of attacks by killers with guns happen in places that are gun-free zones.
David Seltzer
Jun 23 2021 at 2:05pm
David, I just visited a former military friend in Dallas. After Sept 1, Texans can carry concealed or open. My friend, a life long Texan believed it may be in response to the current administration’s challenge to the Second Amendment.
Michael Sandifer
Jun 24 2021 at 6:59am
David,
I’m no constitutional scholar, but the text of the second amendment seems to indicate that it does not guarantee right of individuals to bear arms. To quote:
“A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”
Why have the “well-regulated Militia” part at all if the intention was to simply guarantee the right for individuals?
On your second point, I find it more compelling that many, many countries with much more restrictive gun laws have far fewer mass shootings. The idea that anyone should be allowed to carry such deadly weapons in relatively crowded cities in the 21st century strikes me as absurd. Even in many old westerns, the sheriff required that people surrender their guns upon entering town.
What does a gun buy you security-wise that pepper spray does not? Is it important to be capable of conducting a shootout to optimize security for individuals?
Also, you can find plenty of examples of potential victims armed at mass shooting events who were incapable of responding, because they had to take cover and didn’t even know where shots were coming from in some cases. That big country music concert a few years ago comes to mind.
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