Surgeon Cuts Out Third-Party Payers
Decreasing the bureaucratic nightmare was a large part of Petersen’s motivation. According to a recent report from the Health Economics Institute, physicians’ offices spend between $23 billion and $32 billion per year in administrative overhead trying to get paid by insurance companies.
“The success of No Insurance Surgery has proven itself a sustainable business model and a significantly more patient-centric model of healthcare delivery,” says Petersen, who earns roughly the same fee performing surgery without insurance as he does when he performs an insurance-covered surgery. “No one outside of the profession tells me how I much time I should be spending with a patient.”
Petersen is also able to significantly reduce his overhead by eliminating staff previously dedicated to filing insurance claims and paperwork. At the height of his insurance practice, 80% of his staff’s time was devoted to dealing with insurance companies, Petersen says.
The cost of a no-insurance surgery performed by the practice is 50%–70% less than fees quoted by other physicians who provide insurance-funded surgeries, he says. Patients are offered a discounted, all-inclusive surgery package that includes pre- and postoperative care, laboratory testing, operating room fees, the surgical procedure, and anesthesiologist care. The initial consultation is free.
Petersen and his staff pre-negotiate all fees with medical facilities, anesthesiologists, and all other healthcare providers involved in a given surgery, he says.
- Primary Care Docs Average More Hospital Revenue Than Specialists
- 69% of Employers Plan to Offer Healthcare Coverage After 2014
- How Chargemaster Data May Affect Hospital Revenue
- Q&A: Catholic Health Initiatives' New Senior VP for Capital Finance
- Building a Better Healthcare Board
- Hospital Pricing Irks Nurses; More Jobs, Less Pay
- ED Physicians Key to Half of Hospital Admissions
- CMS Seeks to 'Rapidly Reduce' Medicare Spending with $1B in Grants
- Quiet ORs Better for Patient Safety
- CMS Releases Hospital Pricing Data