JULY 10, 2013 – The American Academy of Family Physicians (AAFP) released a new policy on direct primary care (DPC) in March, defining the model as “a contract between a patient and his/her physician provides for regular, recurring monthly revenue to practices which typically replaces traditional fee-for-service billing to third party insurance plan providers.”
The AAFP says the model can be successful in stabilizing practice finances while at the same time allowing the physician and practice staff to focus more attention on patient needs and health outcomes than coding and billing because contract fees cover all of the primary care costs. Many patients of DPC practices still opt to carry some insurance, usually a high-deductible plan for major health events that must be handled outside of primary care, AAFP notes.
AAFP’s Board Chair Glen Stream, MD, MBI, says the number of AAFP members who have developed DPC practices is small but growing, adding, “there is more than one way to build a PCMH.”
