Small Giants of Healthcare

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Here is a fascinating piece. We have written much about Direct Primary Care, or DPC. In simple terms, a DPC practice is one in which the physician enters into an arrangement to provide services to a patient for a fixed, and usually very conservative, monthly charge.

Recently, several entities have tried to use the DPC model as the basis for forming much larger practices. And some have failed. Why?

As this piece sets forth, DPC is an arena where the notion of “economies of scale” just doesn’t work. DPC works best in small, low overhead practices. One doctor, one nurse, simple office.

Bottom Line. The learning here is sort of a DUH! Quite simply, making things bigger doesn’t necessarily make them unassailable giants. Sometimes it just makes them ungainly, awkward and unprofitable.

This is one of those times!

 

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