{"id":18859,"date":"2026-07-07T09:47:45","date_gmt":"2026-07-07T09:47:45","guid":{"rendered":"https:\/\/strategicmedicalbrokers.com\/?p=18859"},"modified":"2026-07-17T05:30:10","modified_gmt":"2026-07-17T05:30:10","slug":"how-direct-primary-care-affects-practice-value","status":"publish","type":"post","link":"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/","title":{"rendered":"How the Direct Primary Care Model Impacts Medical Practice Value and Future Growth"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"18859\" class=\"elementor elementor-18859\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-77429e6a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"77429e6a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d13f358\" data-id=\"d13f358\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-30a1227e elementor-widget elementor-widget-text-editor\" data-id=\"30a1227e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b>Quick answer: <\/b>Direct primary care is a membership-based primary care model where patients pay your practice a flat monthly fee for primary care \u2014 no insurance billing for those services. Because that fee behaves like subscription revenue, a well-run direct primary care practice carries predictable income, lower overhead, and stronger patient retention. Those three things directly support a higher valuation and a clearer path to growth.<\/p><p>Primary care has changed more in the past decade than in the thirty years before it \u2014 and the direct primary care model sits right at the center of that shift. More physicians are stepping away from insurance-driven schedules and rebuilding their practices around a simpler exchange: patients pay a recurring fee, and in return they get accessible, unhurried care. What started as a niche movement is now a recognized segment of DPC healthcare, with practices in nearly every state.<\/p><p>But if you own one of these practices \u2014 or you\u2019re thinking about building one \u2014 there\u2019s a bigger question underneath the clinical one: what does direct primary care do to the value of the practice itself? That\u2019s what this blog is about. We\u2019ll walk through how the model works, how it compares to concierge medicine, and how it changes the way buyers, lenders, and advisors look at what you\u2019ve built.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#What_Is_the_Direct_Primary_Care_Model\" >What Is the Direct Primary Care Model?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Direct_Primary_Care_vs_Traditional_Practice_At_a_Glance\" >Direct Primary Care vs Traditional Practice: At a Glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#How_Direct_Primary_Care_Works_in_Practice\" >How Direct Primary Care Works in Practice<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#The_role_of_insurance\" >The role of insurance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Direct_Primary_Care_vs_Concierge_Medicine\" >Direct Primary Care vs Concierge Medicine<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#How_the_DPC_Model_Impacts_Medical_Practice_Value\" >How the DPC Model Impacts Medical Practice Value<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Recurring_revenue_changes_the_valuation_basis\" >Recurring revenue changes the valuation basis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Lower_overhead_supports_stronger_margins\" >Lower overhead supports stronger margins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Retention_is_the_asset_buyers_are_really_buying\" >Retention is the asset buyers are really buying<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#What_Buyers_and_Investors_Look_for_in_a_Direct_Primary_Care_Practice\" >What Buyers and Investors Look for in a Direct Primary Care Practice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Key_Metrics_That_Determine_the_Success_of_a_Direct_Primary_Care_Practice\" >Key Metrics That Determine the Success of a Direct Primary Care Practice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Direct_Primary_Care_Pros_and_Cons_for_Practice_Value\" >Direct Primary Care Pros and Cons for Practice Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#How_to_Transition_to_a_Direct_Primary_Care_Practice\" >How to Transition to a Direct Primary Care Practice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#The_Future_Growth_Outlook_for_Direct_Primary_Care\" >The Future Growth Outlook for Direct Primary Care<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#The_Bottom_Line\" >The Bottom Line<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/strategicmedicalbrokers.com\/how-direct-primary-care-affects-practice-value\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_the_Direct_Primary_Care_Model\"><\/span>What Is the Direct Primary Care Model?<span class=\"ez-toc-section-end\"><\/span><\/h2><p>Direct primary care \u2014 DPC for short \u2014 is a practice model where patients pay you directly through a flat membership fee, usually monthly, that covers most or all of their primary care. You don\u2019t bill insurance for those services. That one change takes the third-party payer out of the middle of the physician-patient relationship. A direct care provider gets paid for keeping patients well and reachable, not for generating billable encounters.<\/p><p>Because the revenue comes from memberships instead of claims, direct primary care physicians run much smaller panels \u2014 often 400 to 800 patients, versus 2,000 or more in a typical insurance-based practice. A smaller panel buys you three things:<\/p><ul><li><strong>Longer appointments<\/strong> \u2014 thirty to sixty minutes instead of a rushed slot.<\/li><li><strong>Same-day or next-day access<\/strong> \u2014 the availability members are actually paying for.<\/li><li><strong>Direct communication<\/strong> \u2014 the ability to answer a text without watching the clock.<\/li><\/ul><p>That\u2019s the membership-based primary care relationship in a nutshell \u2014 and it\u2019s the kind of relationship patients tend to keep for years.<\/p><h2><span class=\"ez-toc-section\" id=\"Direct_Primary_Care_vs_Traditional_Practice_At_a_Glance\"><\/span>Direct Primary Care vs Traditional Practice: At a Glance<span class=\"ez-toc-section-end\"><\/span><\/h2><p>Before we get into valuation, here\u2019s how the two models compare side by side:<\/p><table style=\"width: 100%; border-collapse: collapse; border: 1px solid #d1d5db; font-family: Arial, Helvetica, sans-serif; font-size: 15px;\"><thead><tr><th style=\"border: 1px solid #d1d5db; padding: 12px 15px; text-align: left; font-weight: bold;\">Feature<\/th><th style=\"border: 1px solid #d1d5db; padding: 12px 15px; text-align: left; font-weight: bold;\">Direct Primary Care<\/th><th style=\"border: 1px solid #d1d5db; padding: 12px 15px; text-align: left; font-weight: bold;\">Traditional Practice<\/th><\/tr><\/thead><tbody><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Revenue<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Monthly membership<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Insurance claims<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Billing<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">None<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Extensive<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Patient panel<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">400\u2013800<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">2,000+<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Visit time<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Longer<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Shorter<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Administrative overhead<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Lower<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Higher<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Revenue predictability<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">High<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px;\">Moderate<\/td><\/tr><\/tbody><\/table><h2><span class=\"ez-toc-section\" id=\"How_Direct_Primary_Care_Works_in_Practice\"><\/span>How Direct Primary Care Works in Practice<span class=\"ez-toc-section-end\"><\/span><\/h2><p><strong>Membership fees and direct primary care cost<\/strong><\/p><p>Most DPC practices charge somewhere between $50 and $150 per member per month \u2014 what the benefits world calls PMPM pricing \u2014 depending on age, geography, and what\u2019s included. That fee typically covers:<\/p><ul><li>Office visits and preventive care<\/li><li>Basic procedures and chronic disease management<\/li><li>Direct access to you \u2014 phone, text, and same-day availability<\/li><\/ul><p>On the practice side, the direct primary care cost structure is refreshingly lean: no claims to submit, minimal coding, and far less billing staff than an insurance-driven office needs.<\/p><h3><span class=\"ez-toc-section\" id=\"The_role_of_insurance\"><\/span>The role of insurance<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Direct primary care insurance questions come up in almost every patient conversation, so let\u2019s be precise here. DPC is not health insurance, and it doesn\u2019t replace it. Most members pair their membership with a high-deductible health plan (HDHP) that handles hospitalization, specialists, and the big events \u2014 while the membership covers the primary care layer. For you as the owner, that separation is exactly the point. Your revenue no longer rises and falls with payer contracts, reimbursement schedules, or claim denials.<\/p><p>And as of 2026, federal policy finally caught up with the model. Under the One Big Beautiful Bill Act and IRS Notice 2026-05, DPC membership fees became HSA-qualified expenses starting January 1, 2026 \u2014 up to $150 per month for an individual and $300 for a family \u2014 and a qualifying DPC membership no longer disqualifies patients from contributing to an HSA. That removed the biggest tax-code barrier the model ever faced. Members can now pay your fee with pre-tax dollars, which makes the membership an easier yes \u2014 and a stickier one.<\/p><h2><span class=\"ez-toc-section\" id=\"Direct_Primary_Care_vs_Concierge_Medicine\"><\/span>Direct Primary Care vs Concierge Medicine<span class=\"ez-toc-section-end\"><\/span><\/h2><p>These two get confused all the time, because both are built on membership. The real difference is what happens to insurance. In the direct primary care vs concierge comparison, a DPC practice replaces insurance billing entirely \u2014 the membership fee is the revenue. A concierge practice usually keeps billing insurance for visits and charges a membership fee on top. Concierge fees also tend to run quite a bit higher.<\/p><p>From a valuation standpoint, both models are attractive for the same underlying reason: recurring revenue. But buyers underwrite them differently. The concierge medicine business model blends membership income with payer income, while DPC stands entirely on its membership base. We\u2019ve written a separate guide on what acquirers look for in a concierge practice \u2014 worth reading if you\u2019re weighing the two.<\/p><p><strong>Also Read:<\/strong> <a href=\"https:\/\/strategicmedicalbrokers.com\/concierge-medical-practice-buyers-guide\">What Buyers Look for in a Concierge Medical Practice<\/a><\/p><h2><span class=\"ez-toc-section\" id=\"How_the_DPC_Model_Impacts_Medical_Practice_Value\"><\/span>How the DPC Model Impacts Medical Practice Value<span class=\"ez-toc-section-end\"><\/span><\/h2><h3><span class=\"ez-toc-section\" id=\"Recurring_revenue_changes_the_valuation_basis\"><\/span>Recurring revenue changes the valuation basis<span class=\"ez-toc-section-end\"><\/span><\/h3><p>A traditional practice is valued mostly on historical collections \u2014 revenue that has to be re-earned, visit by visit. A direct primary care practice is valued on something more durable: a documented base of members paying a predictable fee. That matters more than it might sound. A buyer can underwrite recurring revenue with confidence, and an SBA lender can finance it, because next year\u2019s income can reasonably be projected from this year\u2019s membership and retention numbers. If you can show steady member counts and low churn, you\u2019re showing a buyer that the revenue survives the ownership change. That\u2019s worth real money.<\/p><h3><span class=\"ez-toc-section\" id=\"Lower_overhead_supports_stronger_margins\"><\/span>Lower overhead supports stronger margins<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Take insurance billing out of the practice and you\u2019ve removed one of the largest administrative cost centers in primary care. DPC practices generally run with smaller front-office teams, simpler technology, and fewer write-offs. Higher margins on the same top line mean higher seller\u2019s discretionary earnings (SDE) \u2014 or adjusted EBITDA for larger practices \u2014 and those are the numbers US practice buyers, appraisers, and lenders actually multiply.<\/p><h3><span class=\"ez-toc-section\" id=\"Retention_is_the_asset_buyers_are_really_buying\"><\/span>Retention is the asset buyers are really buying<span class=\"ez-toc-section-end\"><\/span><\/h3><p>In a membership model, the patient relationship is the balance sheet. Members who renew year after year are goodwill you can measure, not just claim. If you can put tenure, renewal rates, and churn on paper across several years, you\u2019re handing a buyer evidence instead of a story. Evidence commands a premium. Stories get discounted.<\/p><h2><span class=\"ez-toc-section\" id=\"What_Buyers_and_Investors_Look_for_in_a_Direct_Primary_Care_Practice\"><\/span>What Buyers and Investors Look for in a Direct Primary Care Practice<span class=\"ez-toc-section-end\"><\/span><\/h2><p>When a DPC practice comes to market, the diligence questions shift \u2014 buyers ask for your membership roster and retention curves before they ask about payer contracts. Here\u2019s the checklist serious buyers and investors work through:<\/p><ul><li><strong>Membership data first.<\/strong> Current member count, growth trend, tenure distribution, and churn \u2014 ideally documented over three or more years.<\/li><li>How much of the membership is attached to you personally, and whether a transition plan can carry those relationships to a successor.<\/li><li><strong>Earnings that match the membership curve.<\/strong> Seller\u2019s discretionary earnings (SDE) that track a healthy membership base are credible; earnings that don\u2019t match the roster get discounted.<\/li><li><strong>Fee positioning.<\/strong> Where your PMPM pricing sits against the local market \u2014 and, since 2026, whether it fits inside the HSA-qualified fee caps, which makes the membership easier for a new owner to sell.<\/li><li><strong>Growth headroom.<\/strong> Panel capacity left to fill, room to add a provider, and any employer-contract pipeline.<\/li><\/ul><p>All of it starts with an honest, independent valuation \u2014 built on the recurring-revenue basis the model deserves. An inflated number collapses the moment a buyer\u2019s lender orders an appraisal. A defensible one holds all the way through due diligence.<\/p><h2><span class=\"ez-toc-section\" id=\"Key_Metrics_That_Determine_the_Success_of_a_Direct_Primary_Care_Practice\"><\/span>Key Metrics That Determine the Success of a Direct Primary Care Practice<span class=\"ez-toc-section-end\"><\/span><\/h2><p>Whether you\u2019re running the practice for the long haul or preparing it for a sale, the scoreboard is the same. These are the numbers worth tracking from day one:<\/p><ul><li><strong>Active member count and monthly growth<\/strong> \u2014 the top line of a membership business.<\/li><li><strong>Churn rate<\/strong> \u2014 how many members leave each month. Low, stable churn is the single strongest signal that the model is working.<\/li><li><strong>Average member tenure and renewal rate<\/strong> \u2014 the durability of the relationships, and the number buyers pay a premium for.<\/li><li><strong>PMPM fee and pricing history<\/strong> \u2014 where you sit against the local market, and whether you\u2019ve been able to raise fees without losing members.<\/li><li><strong>Panel utilization<\/strong> \u2014 members enrolled versus panel capacity. Headroom is growth; a full panel is a pricing conversation.<\/li><li><strong>SDE margin<\/strong> \u2014 what the practice actually earns after normalizing owner compensation, the figure every valuation multiplies.<\/li><li><strong>Referral rate<\/strong> \u2014 the share of new members who arrive by word of mouth. In DPC, it\u2019s the cheapest growth channel and a quiet proxy for member satisfaction.<\/li><\/ul><h2><span class=\"ez-toc-section\" id=\"Direct_Primary_Care_Pros_and_Cons_for_Practice_Value\"><\/span>Direct Primary Care Pros and Cons for Practice Value<span class=\"ez-toc-section-end\"><\/span><\/h2><p>The direct primary care pros and cons look different through an ownership lens than a clinical one. Here\u2019s the honest version of both sides, paired up:<\/p><table style=\"width: 100%; border-collapse: collapse; border: 1px solid #d1d5db; font-family: Arial, Helvetica, sans-serif; font-size: 15px;\"><thead><tr><th style=\"border: 1px solid #d1d5db; padding: 12px 15px; text-align: left; font-weight: bold;\">Pros \u2014 what supports value<\/th><th style=\"border: 1px solid #d1d5db; padding: 12px 15px; text-align: left; font-weight: bold;\">Cons \u2014 what buyers discount<\/th><\/tr><\/thead><tbody><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>Predictable income.<\/strong> Membership revenue smooths out the seasonality and payer volatility that make traditional practices harder to forecast and finance.<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>Panel ceilings.<\/strong> A capped panel caps membership revenue. Growing past it means adding providers, raising fees, or opening locations.<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>Leaner operations.<\/strong> Less billing infrastructure means lower overhead and stronger margins on the same revenue.<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>Founder dependence.<\/strong> Members often join for a specific physician \u2014 you. A sale has to plan that handoff carefully, or the asset walks out the door.<\/td><\/tr><tr><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>Patient loyalty.<\/strong> Small panels and direct access produce retention most insurance-based practices simply can\u2019t match.<\/td><td style=\"border: 1px solid #d1d5db; padding: 12px 15px; vertical-align: top;\"><strong>A shorter track record.<\/strong> Newer DPC conversions may not have the multi-year membership data buyers and lenders want to see. The model rewards owners who keep clean records from day one.<\/td><\/tr><\/tbody><\/table><h2><span class=\"ez-toc-section\" id=\"How_to_Transition_to_a_Direct_Primary_Care_Practice\"><\/span>How to Transition to a Direct Primary Care Practice<span class=\"ez-toc-section-end\"><\/span><\/h2><p>If you\u2019re running a traditional practice and the model appeals to you, the conversion is well-trodden \u2014 but it\u2019s a project, not a switch. The owners who convert well do it in roughly this order:<\/p><ul><li><strong>Model the economics first.<\/strong> Panel size, PMPM fee, and capacity \u2014 confirm the membership math supports the practice before anything else moves.<\/li><li><strong>Sort out the regulatory side.<\/strong> Review your state\u2019s DPC laws (many states now define DPC by statute), plan your exit from payer contracts, and decide how you\u2019ll handle Medicare \u2014 most DPC physicians formally opt out.<\/li><li><strong>Communicate early and convert in phases.<\/strong> Tell patients what\u2019s changing and why, well ahead of the switch. Expect a subset to convert to membership \u2014 plan the panel around the ones who do.<\/li><li><strong>Keep clean records from day one.<\/strong> Membership counts, churn, and renewals \u2014 the same data that runs the practice is the data that will one day defend its valuation.<\/li><li><strong>Give it time.<\/strong> A conversion typically takes the better part of a year, and the membership track record starts building only after it. If a sale is on your horizon, convert years ahead \u2014 not months.<\/li><\/ul><h2><span class=\"ez-toc-section\" id=\"The_Future_Growth_Outlook_for_Direct_Primary_Care\"><\/span>The Future Growth Outlook for Direct Primary Care<span class=\"ez-toc-section-end\"><\/span><\/h2><p>The forces behind DPC\u2019s growth aren\u2019t slowing down: physician frustration with payer administration, patient demand for access, and \u2014 increasingly \u2014 self-funded employers buying DPC memberships as a benefits strategy. That last one is changing the growth math, because an employer contract adds members in blocks instead of one at a time. And the 2026 HSA change adds fuel here too: employers can now pair an HDHP, an HSA, and a DPC membership in one compliant benefits package \u2014 the structure benefits consultants had been waiting on. For you as an owner, it cuts both ways in your favor: a growing model attracts more buyer interest, and buyers are getting better at evaluating membership businesses.<\/p><h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2><ul><li>Direct primary care replaces insurance billing with a flat membership fee \u2014 recurring revenue that buyers and lenders can underwrite with confidence.<\/li><li>The model\u2019s value drivers are measurable: retention, churn, tenure, PMPM pricing, and SDE margin. Track them from day one.<\/li><li>The 2026 HSA rule change removed the model\u2019s biggest tax-code barrier \u2014 members can now pay fees with pre-tax dollars, within the federal caps.<\/li><li>Buyers discount founder dependence and thin track records; they pay premiums for documented, transferable memberships.<\/li><li>The habits that make a DPC practice good to own are the same ones that make it valuable to sell. Preparation is cheap; start early.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-68bb61e elementor-widget elementor-widget-text-editor\" data-id=\"68bb61e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><span class=\"ez-toc-section\" id=\"The_Bottom_Line\"><\/span>The Bottom Line<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<span style=\"font-weight: 400;\">The direct primary care model changes more than how you practice \u2014 it changes what your practice is worth, and how confidently that worth can be defended. Recurring revenue, lower overhead, and measurable retention give you something rare in healthcare: a practice whose value can be shown, not just claimed.<\/span>\n\nOur founder owned and administered <a href=\"https:\/\/strategicmedicalbrokers.com\/\">medical practices<\/a> for thirteen years before he ever advised another physician, and our team has walked membership-model owners through this exact assessment. If you own a direct primary care practice and want to understand what it\u2019s worth \u2014 now, or years before you plan to act \u2014 start with a confidential, no-obligation conversation and an honest opinion of value. When you\u2019re ready, we\u2019re here.\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-761535e elementor-widget elementor-widget-accordion\" data-id=\"761535e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1231\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-1231\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><svg class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><svg class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">1.\tIs a direct primary care practice worth more than a traditional practice?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1231\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-1231\"><p><span style=\"font-weight: 400;\">Often, yes \u2014 on a comparable revenue base. Recurring membership income is more predictable than fee-for-service collections and usually carries stronger margins. How much of a premium depends on documented retention and how transferable your member relationships are to a new owner.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1232\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-1232\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><svg class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><svg class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">2.\tHow do buyers value a DPC practice?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1232\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-1232\"><p><span style=\"font-weight: 400;\">Mostly on seller\u2019s discretionary earnings (SDE) or adjusted EBITDA, supported by membership data: member count, tenure, renewal rates, churn, and fee levels. Tangible assets and ancillary revenue get layered on top. The quality of your membership records often matters as much as the numbers themselves.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1233\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-1233\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><svg class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><svg class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">3.\tDoes direct primary care work with insurance?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1233\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-1233\"><p><span style=\"font-weight: 400;\">DPC isn\u2019t insurance and doesn\u2019t bill it for covered services. Most members carry a separate high-deductible health plan (HDHP) for hospital and specialty care, while the membership covers primary care. That separation is what keeps your revenue independent of payer contracts.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1234\" class=\"elementor-tab-title\" data-tab=\"4\" role=\"button\" aria-controls=\"elementor-tab-content-1234\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><svg class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><svg class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">4.\tCan patients use HSA funds to pay for direct primary care?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1234\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"4\" role=\"region\" aria-labelledby=\"elementor-tab-title-1234\"><p><span style=\"font-weight: 400;\">Yes \u2014 as of January 1, 2026. Under the One Big Beautiful Bill Act, DPC membership fees up to $150 per month for an individual ($300 for a family) are HSA-qualified expenses, and a qualifying membership no longer blocks HSA contributions. Members should confirm their arrangement fits the fee caps, but for most practices this made the membership meaningfully easier to afford.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1235\" class=\"elementor-tab-title\" data-tab=\"5\" role=\"button\" aria-controls=\"elementor-tab-content-1235\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><svg class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><svg class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">5. Can I convert my existing practice to the DPC model before selling?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1235\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"5\" role=\"region\" aria-labelledby=\"elementor-tab-title-1235\"><p><span style=\"font-weight: 400;\">Some owners do \u2014 but a conversion resets the track record, and buyers will want to see how many patients became members and stayed. A conversion done purely to dress up a sale rarely helps. One done years ahead, with retention to show for it, can genuinely change the valuation conversation. The transition section above walks through the sequence.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Quick answer: Direct primary care is a membership-based primary care model where patients pay your practice a flat monthly fee for primary care \u2014 no insurance billing for those services. Because that fee behaves like subscription revenue, a well-run direct primary care practice carries predictable income, lower overhead, and stronger patient retention. Those three things [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":18901,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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