
Healthcare strategist Dana Y. Lujan examines the viability of direct primary care (DPC) during economic slumps in a discussion highlighted on the KevinMD podcast. The conversation centers on the effects of increasing living expenses and consumer subscription fatigue on the DPC framework, which typically depends on household income for its sustainability. Lujan compares this with an employer-sponsored framework, which offers greater resilience as companies absorb expenses to ensure steady healthcare access for their staff. She advocates for the necessity of aligning healthcare business strategies with the economic circumstances of the communities they serve, rather than adhering solely to ideological beliefs.
Dana highlights the distinction between retail and employer-sponsored DPC frameworks: while retail DPC relies on discretionary household income and can be adversely affected during economic challenges, employer-sponsored DPCs are woven into company benefit structures and stay steady as long as the employer upholds their financial commitment. In discussing the economic strains, Dana notes that as inflation increases, families may choose to deprioritize preventive care subscriptions like DPC in favor of more immediate financial obligations, such as housing expenses.
The recommendation for new DPC practices is to implement a hybrid model that merges retail and employer contracts to lessen financial risks. Lujan proposes that while retail DPC provides straightforwardness, branching out into employer contracts with small or medium-sized businesses could yield additional income sources. This strategy assists practices in preserving financial stability during downturns by not overly depending on a single economic model.
Additionally, Lujan addresses the hurdles DPC practices encounter, including selecting the appropriate pricing strategy and evaluating market conditions to guarantee adequate patient numbers. Practices situated in wealthier areas might face less disruption during economic recessions, but middle-class locales may show more pronounced declines in DPC viability. She counsels practices to approach employers with enticing proposals regarding utilization benefits and the cultivation of employee trust.
In summary, Lujan encourages healthcare practices to embrace a financial strategy that acknowledges the significance of maintaining a flexible business model that can adapt to economic changes, strategizing like CEOs, and ensuring clarity on who holds financial responsibility for healthcare delivery.