Insurance-Driven or Fee-for-Service Practices?

If you are in the market to acquire an existing healthcare practice, you are likely considering many different factors before making your purchase. An established practice has its own methods and styles in place, and the way they accept payments from patients is no exception.

While some practices have a blended approach and accept more than one type of payment, others have a specified method of paying expected. Crossroads Healthcare Transitions, a team of dental and medical real estate experts, describe the differences between healthcare practices that are insurance-driven and those that operate as fee-for-service.

dental insurance acceptance

Considering an Insurance-Based Practice?

An insurance-based healthcare practice is a medical center that accepts payment for services from insurance companies exclusively. The practice will participate in specific insurance plans according to contracts set with providers.

This style of practice is common, so you may be familiar with insurance-driven establishments before you purchase this type of business. This can be a welcome benefit for many professionals when acquiring an existing practice. Geography can play a major role in insurance coverage for many dental and medical patients, so you should consider this factor before buying this kind of practice.

What are Fee-for-Service Practices?

A fee-for-service practice is a medical facility that does not participate in insurance plans. Instead, costs and payment methodology are agreed upon between the patient and the dentist or medical practitioner.

This arrangement means that patients and their care providers do not have to work within the limits of an annual maximum from an insurance company, which can have advantages. The health professional must prepare to offer more individualized care to their patients with this style of practice.

The existing staff and management team at the practice can offer more insight into how their specific office operates. Consulting with a real estate expert can also help you determine which style of healthcare practice that you prefer and that will suit your needs as a medical provider.

Check with a Healthcare Practice Appraisal Expert

Crossroads Healthcare Transitions assists medical and dental professionals with buying and selling their practices. If you are considering a healthcare practice transition, schedule a call with one of our experts to streamline the process. To speak to one of our representatives, contact our team online.