Benefits of Chiropractic Subscription-Based Model for Revenue
Subscription-based business models provide significant financial advantages to the organizations that choose to pursue them. Today, you can find these models in almost every type of business—to use the local gym, watch movies, purchase new outfits, taste different types of beer, etc.
Businesses have recognized that when done right, a subscription-based model generates a dependable stream of revenue. It becomes an annuity stream that enables you to forecast the future and better understand the dynamics of your business, so you can make more informed decisions about staffing, supplies, and strategic investments.
In healthcare, a subscription-based business model has an additional major feature: the ability to streamline your practice by reducing or even eliminating hassles with chasing down the latest insurance claim. This is vital in the field of chiropractic care, where many practices are small and short-staffed.
Using a subscription-based business model, chiropractors can find themselves generating more revenue more predictably, increasing profit, and changing the trajectory of their practices by creating innovative patient offers. Here’s an overview of the main benefits of subscription healthcare.
Eliminating Insurance Headaches
Subscription-based business models enable you to move toward an all-cash practice and away from the costly and time-consuming elements of seeking reimbursements from insurance. Subscriptions essentially replace the insurance system as the source of regular monthly revenue.
How can this happen? Subscribers pay the monthly fee directly to you, rather than involving a health insurer. In exchange, they get a certain number of visits each month or if you choose, other types of chiropractic or holistic health services.
All you need to gather the revenue is to keep your patients’ cards on file. The money comes directly from the patient, rather than through the intermediary of the insurance company.
This is immensely appealing to practitioners. Health insurance is labor and paperwork intensive, especially for large practices. It requires hiring staff with the experience in making sure claims are coded and filed properly and the patience to work through the insurance bureaucracy in case something goes wrong.
Subscriptions eliminate stress and enable you to reduce the costs incurred in the administration of healthcare insurance. As STATNews describes it: “Health care has become busier with its paperwork than its practice.” Also, “8% of each U.S. health care dollar goes to administration,” and it costs “more than $99,000 in expenses per yearper physician just to bill for their services.”
Subscription-based business models can help break that cycle and in doing so, improve your profitability.
Creating a Recurring Revenue Stream
Under an insurance model, patients are confined to the number of visits that their insurance company allots. Understandably, that causes patients to keep close track of their visits and spread them out widely through the year. They don’t want to overspend their allowance.
A subscription-based business model turns that challenge around and adds more certainty to the amount of revenue that you can expect. Patients pay the regular subscription fee every month, whether they can use up all their visits or not.
The prospect of recurring revenue brings peace of mind and helps with future planning. Knowing how much income you can expect allows you to plan carefully for staff management and supplies. You no longer have to wait for the insurance company to make decisions that will impact the shape of your business.
Encouraging Value-Added Offerings
In a traditional care model, every service in the practice is connected to a healthcare code and a certain level of reimbursement. You make what the insurance company allots for that particular service.
A subscription-based business model gives you more control over how you want to position your business and market your services. You can break free from the fee-for-service model and create plans that fold in additional services. Your offers don’t have to be confined to a plan that includes only a certain number of visits for a monthly fee. You can get creative.
For example, many studies show a link between spine and neck health and nutrition. Therefore, many chiropractors offer nutritional counseling as a service. Using a subscription-based model, you can bundle together visits and counseling for a slightly higher monthly price.
When calculated over the course of a year and across numerous patients, those few extra dollars add up to serious revenue, which gives you a greater ability to break free of the costs incurred in the insurance-based model.
With membership plans, you can try different bundles with your patients and offer different services based on what you hear from the treatment rooms. You no longer have to live within the confines of the insurance model.
ChiroSpring Can Help You Implement a Subscription-based Business Model
All that said, a subscription-based model does not free you from the need to implement technology to help track your practice. For that, you need modern software with features that make sense for you as a chiropractor. This is achievable through the CHIROSPRING platform.
CHIROSPRING was developed by chiropractors for chiropractors and is geared toward the multi-location chiropractic practice that has special requirements in terms of capabilities that enable monitoring and measurement from a central location.
It is an all-in-one software package that provides everything that chiropractors need, from scheduling to intake, billing, outcome assessments, document uploading, and more.
The software's financial reporting system gives you an updated view of all financial aspects of each of your locations. It can also be configured to develop subscription-based care plans relevant to your patients.