Payment Plans: What Do Medical Practitioners Use?

Payment Plans: What Do Medical Practitioners Use?

Universal healthcare is one of the most sought-after benefits in the workplace since most professionals accept insurance as their medical practice reimbursement. However, this isn’t the only means for medical professionals to receive payment. Here are a few other methods to consider.

Cash Only

This method is the simplest and most direct form of transaction. For a private practitioner, it’s writing a receipt and receiving the payment upfront. For a small facility, patients will be redirected to the billing station, where the facility gets the payment and records the transaction.


This method of payment is a standard one, especially for insurances like Medicare and Medicaid. In this method, the health care provider files an insurance claim. After it is processed, the insurance provider will pay the fee for the service rendered.

To incentivize practitioners to accept insurance, Preferred Provider Organizations (PPOs) were created. Practitioners in a PPO offer a discounted price for their services. In return, they’d receive a steady amount of patients due to the established network.


This method is a payment plan with a set flat rate, regardless of the individual’s incurred costs. It can apply to patients who are entered into a facility for a long time. It may seem low paying, but the reality is not everyone uses their health plan frequently. Patients who often avail of their plans will be offset by the ones who rarely avail of theirs.

Relative Value Units

For this plan, the effectiveness of the service rendered is what determines the payment. In other words, quality is prioritized over quantity. That is because the practitioner’s time, skills, and effort expended were taken into consideration. Servicing high-profile patients is recommended in this case.

Bundled Payments

This method is used for payments that combine physician and hospital fees. It is used for hospital stays with long durations, such as a planned surgery. Like the Relative Value Units method, this also incentivizes quality service and medicine.

Comprehensive Primary Care

Similar to capitation, this payment plan sets a single amount for a determined period. However, the payment is not recurring, unlike capitation’s per-month scheme. This method encourages quality patient care. Take note that it is up to the practitioner to determine the resources needed by the patient.

Concierge Care

Concierge Care

This plan is the most personal for the practitioner and patient. They agree on a monthly or annual price in exchange for additional benefits. These benefits can come in the form of better doctor accessibility or more personalized health care. It has two types, which are retainer-based and direct primary care.

Upon opening your practice, payments on a cash-only basis may be the best payment method since it eliminates the risk factor of not being paid for your service. However, as your practice continues to grow, it’s best to explore other options and weigh them accordingly. You may find that there are plans that work best for specific specializations. Take stock of your profession and practice, and determine which option will best suit your standing.