Flat-Rate Health Care in Seattle

Discussion in 'Politics' started by Landis82, Aug 9, 2009.

  1. Seems like a pretty good "model" for health care, especially when you understand that .50 cents of every dollar spent on primary care goes to the insurance companies to cover the endless paper chase of billing and transaction costs.

    Seattle doctors try flat-rate no-limit primary care

    Wed Jul 8, 2009 10:55am EDT

    By David Lawsky

    SAN FRANCISCO (Reuters) - A Seattle clinic for people fed up with insurance, started by doctors fed up with insurance, has gotten $4 million in private venture capital money to expand, it announced on Monday.

    Qliance says it has a profit-making solution to the problems of long waits, rushed doctors and cursory care that bother patients, at the same time that it eliminates the paperwork and pressure that plague primary care doctors.

    "If you spent five minutes in my office you would notice there is nobody waiting. We don't have to stack them up like jets over Newark," said Garrison Bliss, a doctor and co-founder of the primary care clinic.

    The new venture funding comes from Second Avenue Partners with participation by New Atlantic Ventures and Clear Fir Partners, bringing total capital raised to about $7.5 million.

    Co-founder Norm Wu said per-patient revenue is triple that of insurance-based clinics. He said many costs are fixed so the firm, now losing money, will turn to profit as business grows.

    More than 50 noninsurance clinics operate in 18 U.S. states, based on different business models, Wu noted.

    The backers believe Qliance can grow very profitable, and the clinic uses stock options to attract new doctors. The next step is to open a suburban office.

    Qliance says it is a private alternative to the failures of insurance, which have made health care President Obama's top legislative priority in Congress, with a price tag of $1 trillion or more.

    Qliance customers pay $99 to join, then a flat monthly rate of $39 to $119, depending on age and level of service. Patients can quit without notice and no one is rejected for pre-existing conditions.

    Patients must go to outside brokers and qualify medically to buy catastrophic care. One broker said a 30-year-old could expect to pay $133 per month for such care, and a 60-year-old nearly $400, plus substantial deductibles.

    Qliance patients get unrestricted round-the-clock primary care access and 30-minute appointments.

    "Why would a doctor not want to see sick people? That doesn't make sense, unless you're an insurance company," Bliss said.

    He rejected the idea that unrestricted access causes overuse, calling that "nonsense promoted by insurance companies .... There's nobody I've ever met who gets their pleasure by seeing doctors."

    Bliss said dumping rigid, convoluted insurance requirements and paperwork saves large amounts of money.

    UnitedHealth (UNH.N), which processes 60 billion health care transactions a year, argued in June that better use of technology would save $332 billion annually, with some going to physicians.


  2. It's interesting to note that there are estimates out there claiming that we will be short 40,000 PRIMARY care physicians in the years to come.


    Because the pay for SPECIALISTS is literally double the amount that a primary care physician makes. Specialists are around $350,000 per year, and command such compensation due to the higher liability insurance premiums that they must carry.

    In any event, it would seem that the Seattle flat-rate business model for PRIMARY care physicians is certainly an interesting option.

    And while it doesn't cover emergency room visits or specialist care surgeries, it does give discounts for MRI's and CAT scans and certainly helps cut down on "downstream" health care costs... trips to the ER, etc.
  3. Well, the combination of relatively low pay and constant harassment from lawyers is a large disincentive to do primary care these days.
    This looks like it has the potential to up the pay of primary care, which would definitely help in getting people to stay as doctors.
  4. Interesting. Thanks for posting.
  5. free enterprise at work.

    WOW ......... OPTIONS! I thought our only option was to hand the whole friggin thing over to Pelosi and Obama..

    I bet most doctors are loathe to be regulated to sucking at the government teet like a common beaucrat asshole, so they'll finally come up with cost savings measures inbetween rounds of golf.

    EDIT: I just read that the DNC is sending in the AFL-CIO to town hall meetings.

    Democrats At Their Finest!!!!!!!!! SEND IN THE UNION THUGS!!!!!!!!!!!!!!!!!!!!!!!
  6. Yes, I caught it highlighted on the CBS Early Show over the weekend and then looked it up on the web. Seems like a pretty good "model" for PRIMARY care. :)