Concierge and Direct Primary Care Models Assignment 1
Jessica Collins
BUSI691: Healthcare Administration Capstone
Assurance of Learning Exercise
July 6, 2025
Respectfully submitted to: Dr. Geraldine Rosol
Concierge and Direct Primary Care Models Assignment 2
Introduction
Over the years, healthcare has evolved to increase patient quality of care, but at a
cost. The increase in quality of care must be done with a reduction in cost. It feels like
every year there is a change to insurance billing and new rules to what can be coded and
what is now excluded from healthcare organizations. Ultimately these new changes are
implemented to help the patient cover their healthcare costs, but the organization takes
a major hit- especially employees’ salaries and benefits the organization can offer. This
paper will examine the two new practice options that will offer the best financial
arrangement for everyone.
Advantages and Disadvantages of Concierge and DPC models
Both models have great advantages for the patient and their families. The Concierge
model removes the copay option and offers a flat monthly or annual fee for greater
medical access with the assigned primary care provider (Walson, 2023). The upside to
this model is that it can still bill patients’ insurance. Other great advantages about this
model are “practices often provide online consultations; unlimited office visits with no
copayments; and free prescriptive refills, house calls, and preventative care services”
(Walston, 2023, p. 290). There are several disadvantages to this model as well. For
instance, this model often targets middle and upper- class patients because they can pay
monthly/ annual fees. Additionally, when organizations switch to the concierge model,
they only “retain 15-35 percent of their existing patients” (Walston, 2023, p. 291). The
issue that Michael Glen has with these two models is that lack of retainability with his
current patients. Yes, he could make more money and fill his employees' pockets, but
where do the other patients go that cannot afford to transition with them?
The advantages of Direct Primary Care (DPC) include “basic lab tests, vaccinations, and
generic drugs at or near costs” (Walston, 2023, p. 291). DPC does not deal with third
Concierge and Direct Primary Care Models Assignment 3
parties and does not accept insurance. It is strictly confined to the monthly or annual
fee. Both models show decreases in hospital visits and readmissions. DPC fees are
cheaper than the concierge model, and the physicians see almost double the number of
patients seen in the concierge model. “A concierge physician generally maintains a
patient panel of only 300-600 patients;” DPC patient panels are 600-800 (Walston, 2023,
p. 291). The disadvantages of the DPC model are the same as the concierge model.
Michael’s ethical concerns for his patients are noteworthy, as well as his concerns for his
employees being approached by another healthcare organization.
General Medical Clinic’s Business Model and Potential Changes
Healthcare is a competitive industry which often leads organizations to pursue
innovative ideas and the way they provide services. “This industry is crucial for the
creation and commercialization of products and services aimed at the preservation and
restoration of health and well-being" (Javanmardi et al., 2024, para 3). Currently, Mr.
Glen uses the US healthcare business model, and based on his concerns, he needs to
adjust. “Such change requires a strong organizational desire for improvement, strong
leadership, and a mission-driven commitment; as well as the vision necessary to reach
out and recruit the needed services for operational improvement, and awareness of
internal data structures” (Erwin et al., 2025, para. 12). The new models proposed offer
options for patients with providers who are willing to spend more face time with their
patients than ensuring their productivity remains high.
People want to feel valued and cared for. They want to be heard. If the General
Medical Clinic switches to either the new concierge or DPC model, their patients will
enjoy their ability to seek help around the clock. “An innovative business model aims to
address the needs and desires of all consumers or just a segment” (Walston, 2023, p.
66). This change will transform the way they are received, and it speaks volumes to their
Concierge and Direct Primary Care Models Assignment 4
mission and vision for their organization. A successful organization has three distinct
components. “The first is the pure mission statement, second is the overarching vision,
and third are the guiding principles” (Wayland & McDonald, 2021, p. 38). If Mr. Glen
wants to move forward, he needs to start by thinking of how he can increase patient
value.
Swapping business models will require additional manpower and equipment. If the
intention is to keep as many patients as possible and still give great care, hiring
additional providers and supplying the proper technology so the organization can be a
one stop shop will be beneficial. Increasing resources enhances input. “... by offering
increased access and more physician-patient interaction time, provides preventive care
services that could potentially yield cost savings by circumventing the need for costly
hospitalizations or emergency room visits” (Alhawshani & Khan, 2024, p. 2183). This is
the end goal of a healthcare organization; improve care and reduce hospital usage.
When thinking of processes that need to be incorporated into this new business
model, Michael must think about how he wants his organization to be utilized. Will they
be available twenty-four hours a day, seven days a week? Does this care also extend to
family members? Are house calls a part of the package, or are patients required to come
into the office? These new policies will be instrumental in how effective and efficient his
organization will be to their patients. If Michael is successful in changing value, input,
and processes within his organization, he will see a significant revenue increase.
Separating the pay scale for families based on how affluent they are could allow Michael
to keep some of his patients who are in a lower-income household.
Recommendation
Michael wants to do the right thing for his organization as well as his patients. That
takes a lot of strength along with a strong moral code to do the right thing. It makes
Concierge and Direct Primary Care Models Assignment 5
sense for Michael to adopt one of the models, specifically the concierge model. It allows
people to still use their insurance and not have to pay all fees out of pocket. This option
gives him the ability to keep his current patients. Philippians 2:4 says, “Let each of you
look not only to his own interests, but also to the interests of others” (King James Bible,
1769/2021). In the text it talked about how Michael had ethical concerns about adopting
a new model because it would force patients to find a new physician when there was
already a shortage. This man really cares about what he does, and this further explains
why this is not about money. Healthcare is a big business, but those details really
showed the human side of him and how this would affect some people that had been
with his organization. He was also concerned about medical specialists who would see a
shortage of work if he changed his business model. The executive committee could
brainstorm some ideas on how to proceed without cutting so many things out of the
organization if it was switched over. This would be the time to address everything but
also look at what is to come.
References
Alhawshani, S., & Khan, S. (2024). A literature review on the impact of concierge
medicine services on individual healthcare. Journal of Family Medicine and
Primary Care, 13(6), 2183–2186. https://doi.org/10.4103/jfmpc.jfmpc_1685_23
Erwin, D. T., Fischer, A., Litvak, M., & Litvak, E. (2025). Concierge-level care for
underserved communities: Not a pipe dream. Journal of Primary Care &
Community Health, 16, 21501319251332458.
https://doi.org/10.1177/21501319251332458
Javanmardi, E., Maresova, P., Xie, N., & Mierzwiak, R. (2024). Exploring business
Concierge and Direct Primary Care Models Assignment 6
models for managing uncertainty in healthcare, medical devices, and
biotechnology industries. Heliyon, 10(4), e25962.
https://doi.org/10.1016/j.heliyon.2024.e25962
King James Bible. (2021). King James Bible Online.
https://www.kingjamesbibleonline.org/ (Original work published 1769)
Wayland, M. S., & McDonald, W. G. (2021). Strategic analysis for healthcare: Concepts
and practical applications (2nd ed.). HAP/AUPHA, Health Administration Press.
Walston, S. L. (2023). Strategic healthcare management: Planning and execution (3rd
ed.). Health Administration Press.
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