CONCIERGE MEDICINE

MARCH 2025

Concierge medicine at a glance

Concierge medicine is a membership-based healthcare model in which patients pay an annual fee for enhanced access and personalized services from their physicians. By maintaining a smaller patient base, these practices can offer more dedicated attention, timely appointments, and a comprehensive approach to each individual’s health. This model fosters stronger, trust-based relationships between doctors and patients, ensuring care that is not only thorough but also tailored to unique needs and preferences.

Sector Overview

  • Concierge medicine is a growing healthcare model where patients pay an annual fee to access more personalized care and enhanced services compared to traditional practices
  • This model allows physicians to maintain a smaller patient panel, leading to more time per patient, faster appointments, and often 24/7 direct access for urgent needs
  • Physicians in concierge medicine can offer a proactive, wellness-oriented approach, focusing on preventive care, early intervention, and lifestyle counseling
  • While concierge practices may appeal to individuals seeking a more customized healthcare experience, costs can vary widely, and insurance is typically not included for the primary services
  • The concierge model has seen rising popularity, especially among patients valuing privacy, convenience, and a deeper relationship with their healthcare provider
  • Critics argue that while concierge medicine benefits individual patients, it may contribute to broader disparities in healthcare access due to its higher cost structure, making it less accessible for lower-income patients

Key Metrics

~12k

Physicians operating under a concierge medicine model in the U.S. (2022)

$3k - $10k

Estimated annual membership fee range for concierge medicine service plans (2024)

450 to 1

Typical member-to-physician ratio in a standard concierge medicine practice setting (2024)

80 to 1

Typical member-to-physician ratio in a premium concierge medicine practice setting (2024)

~90%

Average patient retention rates in concierge medicine versus roughly 70%-80% in traditional practices

~5x

Fewer annual patients served through concierge medicine practices compared to traditional physician practices

Source: Publicly available information

Concierge Medicine in Contrast to Traditional Practices

The concierge model emphasizes a membership-based revenue structure and streamlined operations that enable personalized care but limit scalability, while traditional practices rely on insurance reimbursements and standardized processes, allowing for greater scalability through higher patient volumes.

I. Revenue Structure

  • Primarily rely on fee-for-service payments and insurance reimbursements
  • Revenue depends on patient volume and billing codes, which can fluctuate
  • Financial sustainability tied to insurance rate negotiations and patient throughput
  • High administrative burden for insurance claims and payment processing
Traditional
  • Primarily rely on fee-for-service payments and insurance reimbursements
  • Revenue depends on patient volume and billing codes, which can fluctuate
  • Financial sustainability tied to insurance rate negotiations and patient throughput
  • High administrative burden for insurance claims and payment processing
Concierge Medicine

II. Operational Efficiency

  • Higher administrative costs from insurance claims, billing, and compliance
  • Requires additional staff for high patient volumes and paperwork
  • Costs associated with implementing standardized protocols and regulatory compliance
  • Efficiency relies on established billing and documentation systems
Traditional
  • Higher administrative costs from insurance claims, billing, and compliance
  • Requires additional staff for high patient volumes and paperwork
  • Costs associated with implementing standardized protocols and regulatory compliance
  • Efficiency relies on established billing and documentation systems
Concierge Medicine

III. Scability & Service Delivery

  • Structured for high patient volumes and standardized care, making it easier to scale
  • Can add practitioners or expand locations to increase patient capacity
  • Scalability supported by standardized protocols, allowing for consistent care delivery
  • Primarily focused on expanding within healthcare networks or larger medical groups
Traditional
  • Structured for high patient volumes and standardized care, making it easier to scale
  • Can add practitioners or expand locations to increase patient capacity
  • Scalability supported by standardized protocols, allowing for consistent care delivery
  • Primarily focused on expanding within healthcare networks or larger medical groups
Concierge Medicine

Source: Publicly available information

U.S. Concierge Medicine Market Overview

The concierge medicine market in the U.S. is poised for significant growth, with a growing number of physicians exploring the concierge model as a solution to the structural challenges facing traditional practices. This shift reflects a trend toward more personalized, patient-centered care as doctors seek alternatives to conventional healthcare constraints.

U.S. Concierge Medicine Market Size & Service Segmentation

$ in billions

The prominence of group practices in concierge medicine reflects a shift toward collaborative care, offering patients broader expertise and streamlined access. Emphasizing primary care, these practices focus on comprehensive, preventative health management and closer patient-provider relationships.

Select Factors Fueling Industry Growth

1. High burnout rates among providers are prompting doctors to seek improved work-life balance options

2. Increasing financial pressures and low reimbursements are making concierge fees increasingly appealing

3. Shifting consumer preferences have accelerated concierge medicine adoption among providers

~1/2
Of surveyed physicians reported experiencing burnout in 2023
16%
Increase in physician practice expenses from 2022 to present
~12k
Concierge physicians today vs. 4.4k in 2012

Source: World Clinic, GM Insights, Publicly available information

1. Physician Burnout

Although there are signs of easing, physician burnout remains high, prompting some doctors to consider early retirement. The concierge model offers a solution by reducing patient loads, allowing for more manageable workloads, and promoting career longevity through a more balanced and sustainable practice environment.

Physician Burnout Rates

% of physicians reporting burnpot

Physician Burnout Rates

Drivers of Burnout & Concierge Medicine Remedies

62%
Of providers credit bureaucratic tasks as the primary contributor to physician burnout
41%
Of providers claim that long hours are the most significant factor contributing to burnout
40%
Of providers express that their lack of professional autonomy is the leading cause of burnout

The concierge medicine model addresses key factors contributing to physician burnout

Minimizes the administrative burden associated with third-party payors by relying on patient-paid fees, which reduces extensive documentation and compliance demands, allowing physicians to focus more on direct patient care and personalized services

Reduces panel size to 300-600 patients vs. 2000+ in traditional care, enabling personalized attention and shorter hours

6-8
PPD in concierge medicine
20+
PPD in traditional primary care

Enhances professional autonomy by giving physicians greater control over treatment options, flexible scheduling, and personalized practice management, allowing care decisions to be driven by patient needs rather than insurance constraints

Source: Doximity, AMA, Publicly available information

2. Increasing Financial Pressures

Rising expenses, combined with declining and insufficient reimbursements, are squeezing profit margins for traditional practices. Despite seeing more patients, these financial pressures make it challenging to maintain profitability, positioning concierge medicine as an increasingly attractive alternative with its steady, membership-based revenue model.

Physician Practice Expenses

Median total expense per physician FTE, $ in thousands

Declining Reimbursement Rates

2.0%
2023 Medicare Physician Fee Schedule cut
1.7%
2024 Medicare reimbursement rate cut
2.9%
2023 Medicare Physician Fee Schedule cut
Historical Decline Relative to Inflation
29%
Decline in Medicare physician payments adjusted for practice cost inflation, 2001–2024
2.3%
Reduction in physician reimbursement per Medicare patient, 2005–2021

Additional Drivers of Rising Physician Practice Costs

57%
Increase in healthcare practice labor expenses compared to pre-pandemic levels
$150k
Median investment per PCP FTE to sustain profitability (Q2 2024, up 3.45% since Q2 2022)
15.2%
Average price increase among 4,200 prescription drugs that saw price hikes (2022 to 2023)
3.3%
Increase in non-labor costs for providers, including compliance expenses (2023 to 2024)
80%
Of healthcare respondents cited spending materially more on IT innovations (2023)

The mounting pressures from reimbursement cuts and rising operational costs make traditional practice models increasingly unsustainable, prompting physicians to explore alternatives like concierge medicine. With its membership-based revenue structure, concierge medicine provides a stable income stream, reducing dependence on variable insurance payments and allowing physicians to focus more on patient care by minimizing administrative burdens.

Source: AHA, ASPE, Bain & Company Survey, Strata Comparative Analytics, Physician Flash Report, Publicly available information
1Medicare reimbursement rates

3. Shifting Consumer Preferences Favor Concierge Medicine

The shift toward personalized, patient-focused care is driving interest in concierge medicine, offering an alternative to traditional models by prioritizing accessibility, preventive health, and stronger physician-patient relationships.

Challenges for Patients in Traditional Care

Cited reasons for leaving traditional insurance-based doctors

Enhanced Patient Outcomes in Concierge Medicine

Patients benefit from significantly reduced wait times and faster access to appointments, ensuring timely and convenient care when they need it most
Concierge practices utilize remote monitoring and telemedicine, allowing patients to stay closely connected to their healthcare providers without the need for in-person visits
A strong focus on preventive care and personalized wellness plans empowers patients to maintain healthier lifestyles and proactively address health risks
Longer consultation times enable more in-depth discussions and a collaborative approach between patients and physicians, enhancing the overall quality of care
Tailored care recommendations based on each patient's unique needs and history provide a more precise and personalized approach to treatment

By offering enhanced accessibility, preventive focus, and deeper patient-doctor relationships, concierge practices create a more satisfying and responsive healthcare experience. As a result, patients who can afford the premium fees are increasingly drawn to concierge care, valuing the tailored, proactive approach that traditional models often lack.

Source: Doximity, AMA, Publicly available information

Additional Trends Driving Growth in Concierge Medicine

Telehealth Integration

Technological advances have improved accessibility and allowed telehealth to thrive...
... Concierge practices are leveraging these advancements to enhance patient engagement and expand their reach
14%
Telehealth adoption by U.S. physicians (2016)
80%
Telehealth adoption by U.S. physicians (2022)

Aging Population

The aging population in the U.S. is expected to continue its steady growth over the coming years...
~20%
By 2030, an estimated 20% of Americans will be over the age of 65
... This has resulted in increased chronic disease cases, driving demand for personalized, premium concierge medicine services
88%
Of older adults have at least one chronic condition

Increased Focus on Prevention

The growing demand for preventive care services is closely linked to demand for concierge medicine...
... As consumers focus more on prevention, concierge medicine's personalized services are well-positioned to capitalize on this trend
13%
Proportion of preventive primary care visits (2002)
25%
Proportion of preventive primary care visits (2019)

The convergence of shifting consumer preferences, advancements in telehealth, and an aging population has further positioned concierge medicine as a solution that aligns with both patient preferences and healthcare provider needs. By offering tailored, preventive-focused services in a flexible and sustainable model, concierge medicine is well-equipped to address key challenges in healthcare today and drive long-term growth.

Source: AMA, HealthAffairs, Publicly available information
1% of healthcare visits in the U.S. (2020)

Current Regulatory Considerations

Concierge medicine operates within a complex regulatory framework, requiring careful attention to compliance in areas such as contractual obligations, insurance considerations, and federal and state laws to maintain transparency and patient trust.

Key Regulatory Concerns in Concierge Medicine

Contractual
Requirements
  • Covered Services: Concierge practices must clearly outline which services are included in the membership fee and which services require additional payments, helping avoid disputes and ensuring patients understand the full value of their membership; transparent service definitions are also critical for compliance, as misrepresentations could lead to regulatory scrutiny or accusations of deceptive practices
  • Membership Fees: Setting membership fees requires navigating federal and state regulations to avoid fee-splitting with insurers or misrepresentation of services, ensuring that fees reflect actual services provided while maintaining proper documentation for compliance
Insurance
Considerations
  • Medicare Participation Challenges: Physicians in concierge practices who remain opted into Medicare face complex compliance requirements, including strict billing rules, limitations on direct patient charges for covered services, and extensive documentation obligations, with failure to adhere resulting in penalties and reimbursement disputes, making Medicare participation a significant administrative burden for concierge practices
  • Third-Party Payor Interaction: While concierge practices focus on direct payment models, some interactions with third-party payors (e.g., lab services) must comply with regulations to avoid unintentional breaches of billing or reporting requirements
Compliance
Obligations
  • Stark Law & Anti-Kickback Statutes: Concierge medicine practices must ensure their financial arrangements comply with Stark Law and Anti-Kickback Statutes, avoiding improper referrals or incentive structures that could lead to legal and financial penalties
  • HIPAA: Concierge practices often involve more personalized communication and data sharing, making it critical to maintain HIPAA compliance to protect patient privacy and prevent unauthorized disclosures
  • State Laws: State-specific laws can vary significantly and may impose additional compliance obligations on concierge practices, such as restrictions on fee structures, scope of services, or advertising practices

Source: Publicly available information

Systemic Impact Driving Regulatory Uncertainty

While concierge medicine benefits the patients and providers within the model, it also presents challenges to the broader healthcare system, particularly by impacting accessibility, contributing to physician workforce shortages, and raising concerns about equitable care. As a result, ongoing monitoring of potential state and federal legislation will be crucial in shaping its future impact.

Accessibility Concerns

  • Concierge medicine requires out-of-pocket payments, limiting access for lower-income patients
  • Practices often prioritize affluent areas, widening geographic disparities in care
  • Limited insurance acceptance forces more patients into already strained traditional healthcare settings

Workforce Shortages

  • Physicians moving to concierge models reduce the availability of providers in traditional care
  • Smaller patient panels mean fewer patients served per doctor, worsening the overall shortage
  • Fewer new physicians entering primary care intensify existing workforce shortages

Challenges to Equitable Care

  • The concierge model creates a two-tiered system, benefiting those who can afford it while others face longer wait times
  • Fewer physicians in traditional settings lead to overcrowding and reduced quality of care for publicly insured patients
  • Disparities grow as fewer providers accept Medicaid and Medicare, limiting options for lower-income populations

Regulatory discussions are centered on how to support innovation in concierge medicine while preventing unintended consequences that could further strain the healthcare system, ensuring that new models enhance care without reducing access or equity.

Source: Publicly available information

Concierge Medicine M&A Activity and Market Landscape

Date Seller Buyer Type Seller Summary
Dec-24 Frontier Direct Care Mehshah Capital, Health Advance Partners PE Growth DPC
Oct-24 HealthBridge Pacific Lake Platform Concierge Medicine
Jan-24 Exemplar Care Hy-Vee Health M&A DPC
Nov-23 Tequesta Family Medical Center Medical Specialists of the Palm Beaches Add-on Concierge Medicine
Nov-23 Colton and Kaminetsky Medical Specialists of the Palm Beaches Add-on Concierge Medicine
Nov-23 Nextera Healthcare Shore Capital Partners Buyout/LBO DPC
Sep-23 Metzger Comprehensive Care Medical Specialists of the Palm Beaches Add-on Concierge Medicine

Investment Tailwinds and Headwinds

Tailwinds

1

Rise of Hybrid Concierge Models

Hybrid models are allowing providers to integrate concierge patients into traditional practices, providing a gradual transition and financial stability.

2

Expanding Scope of Practice

Concierge practices are incorporating broader services, such as chronic care management as well as other physician specialties, to attract a wider range of patients and improve retention.

3

Increased Adoption

Growing awareness and acceptance of concierge medicine among patients and providers is driving accelerated adoption.

4

Rising Disposable Incomes

Increasing disposable incomes among key patient demographics provide a greater ability to afford personalized healthcare models.

Headwinds

1

Scalability Concerns

The highly personalized nature of concierge medicine creates challenges in scaling operations without compromising patient experience.

2

Insurance Complications

While concierge medicine operates primarily outside traditional insurance, compliance with regulations and integration with other healthcare providers can present operational and legal hurdles.

Source: Publicly available information

Select Operators in Concierge Medicine

Ownership: Markel Ventures
Investment Date: Jul 2011
Locations: 7
States: 4
No. Physicians: 25+

Ownership: Charlesbank Capital Partners, Goldman Sachs Asset Management
Investment Date: Oct 2021
Locations: 150+
States: 44
No. Physicians: 1,100+

Ownership: Private (Later Stage VC)
Locations: 55
States: 50
No. Physicians: 10+

Ownership: Resolute Capital Partners, Tenth Street Capital
Investment Date: Nov 2015
Locations: 40+
States: 18
No. Physicians: 11+

Ownership: Blue Sea Capital
Investment Date: Apr 2019
States: 35
No. Physicians: 200+

Ownership: Private
Locations: 2
States: 1
No. Physicians: 13+

Ownership: Private
Locations: 30+
States: 8
No. Physicians: 50+

Ownership: Private (Later Stage VC)
States: 19
No. Physicians: 50+

Source: Publicly available information

Important Disclosures

This document is being provided in connection with an actual or potential mandate or engagement and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with the Allen, Mooney & Barnes companies. This document is intended solely for the use of the party to whom it was provided to and is not to be disclosed (in whole or in part), summarized, reprinted, sold, redistributed or otherwise referred to without the prior written consent of the AMB companies.

Allen Mooney & Barnes Brokerage Services is a broker/dealer member of FINRA and SIPC. Allen Mooney & Barnes Investment Advisors, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission.

Information presented in this document is for informational, educational and illustrative purposes only. While the information in this document is from sources believed to be reliable, the AMB companies make no representations or warranties, express or implied, as to whether the information is accurate or complete and assume no responsibility for independent verification of such information. In addition, the analyses in this document are narrowly focused and are not intended to provide a complete analysis of any matter.

Past performance is not necessarily indicative of future performance. Estimates, projections or indications of future performance can be identified by certain statements, such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "plans," "estimates" or "anticipates" or the negative of those words or other comparable terminology, as well as by statements concerning projections, future performance, developments, events, revenues, expenses, earnings, run rates and any other guidance on present or future periods. Any such statements are forward-looking in nature and involve risks and uncertainties. Any statements of future performance are based on assumptions that might not be realized and a number of factors, including without limitation, the volatility of the securities markets, the overall environment for interest rates, risks associated with private equity investments, the demand for public offerings, activity in the secondary securities markets, competition among financial services firms for business and personnel, the effect of demand for public offerings, available technologies, the effect of government regulation and of general economic conditions on our own business and on the business in the industry areas on which we focus and the availability of capital to us. We are under no obligation to update the information presented in this document or to inform you if any such information turns out to be inaccurate or misleading.

The information in this document is not, and is not to be construed as, an offer or a solicitation to buy or sell any securities or any other financial instruments or a recommendation or endorsement to engage in or effect any particular investment or transaction. Moreover, under no circumstances should the information in this document be considered legal, tax or accounting advice or relied upon, therefore. The recipient is advised to rely on the advice of its own professionals and advisors for such matters and should make an independent analysis and decision regarding any transaction based upon such advice.

The information in this document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or for any distribution or use that would subject the AMB companies to any registration requirement within such jurisdiction or country.

677 King Street, Suite 410 | Charleston, SC 29403

AMB Investment Banking Snapshot and Deal Team

AMB focuses on lower middle-market healthcare niches where consumerism and fragmentation meet to disrupt traditional healthcare channels. We typically advise companies with EBITDA of $5M to $20M and an average enterprise value of $100M, but will move up and down the spectrum. AMB’s research-oriented approach to business development has resulted in a vast network of strategic and financial sponsor relationships that yield industry leading intelligence and optimal outcomes for our clients.

Mikel Parker

Managing Director
843-501-2183 Direct
mikel.parker@ambadvisors.com

Ryan Loehr, CPA

Managing Director
843-405-1108 Direct
ryan.loehr@ambadvisors.com

Johnny Cross

Vice President
843-371-8596 Direct
johnny.cross@ambadvisors.com

Kevin Williams

Senior Associate
843-473-7981 Direct
kevin.williams@ambadvisors.com

Sully Hagood

Senior Associate
843-576-4709 Direct
sully.hagood@ambadvisors.com

Josh Hall

Associate
843-405-1112 Direct
josh.hall@ambadvisors.com

Asha Hamaker

Analyst
405-343-1643 Direct
asha.hamaker@ambadvisors.com

Brayden Sarathy

Analyst
843-271-5652 Direct
brayden.sarathy@ambadvisors.com

Contact Us