Direct Primary Care

Updated on April 30, 2024
Article byGayatri Ailani
Edited byRaisa Ali
Reviewed byDheeraj Vaidya, CFA, FRM

What Is Direct Primary Care?

Direct primary care (DPC) is a business model approach where primary care doctors provide services directly to patients, bypassing the involvement of insurance companies. This model aims to enhance accessibility, affordability, and the overall quality of primary healthcare by eliminating the complexities associated with traditional insurance-based systems.

Direct Primary Care

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DPC empowers patients and doctors to navigate healthcare collaboratively, emphasizing prevention and personalized attention for an improved, streamlined healthcare experience. Patients pay a predictable fee for comprehensive primary care, fostering direct doctor-patient relationships. This model prioritizes transparency, affordability, and accessibility.

Key Takeaways

  • A direct primary care (DPC) agreement is a contractual arrangement between a patient and a healthcare provider where the patient typically pays a monthly or annual fee directly to the provider, granting them access to a range of primary care services without involving traditional insurance.
  • The benefits of direct primary care include increased affordability through a transparent membership fee model.
  • It enhances accessibility with options for 24/7 communication and same-day appointments, fostering personalized care due to smaller patient panels. 
  • The drawbacks of direct primary care are that it does not typically cover prescription medications, and patients may still need insurance for major events. 

Direct Primary Care Explained

Direct primary care (DPC) stands out as a distinctive healthcare model that fosters direct collaboration between doctors and patients, free from intermediaries like insurance companies. In exchange for a monthly or annual fee, patients gain comprehensive access to primary care services, with full transparency regarding additional costs for services like labs, medication, and imaging. The emphasis on upfront disclosure ensures that patients are never caught off guard by unexpected bills, contributing to a more transparent and affordable healthcare experience.

The direct primary care (DPC) model operates on a membership basis, where patients pay a fee, typically ranging from $50-$100 monthly or more, directly to healthcare providers (HCPs). This fee grants access to a specific set of healthcare services. DPC gained popularity in the early 2000s for its direct financial arrangement and transparency. The membership fees can be self-covered by individuals or provided by employers as part of employees’ self-insured major medical health plan. Under DPC, certain services are fully covered, eliminating extra costs during doctor visits. However, it’s crucial to grasp the specifics of membership coverage. 

DPC plans vary; some offer limited services, while others are more comprehensive. Additional fees may apply for services like prescription medications, lab work, and imaging, but the membership structure often allows wholesale cost payments instead of retail. Furthermore, DPC practices maintain smaller patient panels, around 600 to 800 patients, enabling healthcare providers to offer more personalized and unhurried care than traditional practices with larger patient loads.


Let us look at the direct primary care examples to understand the concept better –

Example #1

Consider Sarah, a working professional enrolled in a direct primary care (DPC) program. Instead of navigating the complexities of traditional insurance, Sarah pays a monthly membership fee directly to her DPC provider. This fee covers a range of primary care services, including preventive check-ups, same-day appointments, and virtual consultations. 

One day, Sarah experiences a persistent cough and promptly contacts her DPC doctor. She easily secures a same-day appointment, avoiding the typical delays associated with traditional practices. During the appointment, her doctor spends ample time discussing her symptoms, conducting necessary examinations, and arranging a virtual follow-up to monitor her progress. The DPC model allows Sarah to enjoy personalized and accessible healthcare, free from the hassle of insurance paperwork and unexpected costs, ultimately contributing to a more satisfying and efficient healthcare experience.

Example #2

Another example is from the U.S. where DPC memberships are rising. For instance, it presents a total growth rate of 241% from 2017-2021. While DPC doesn’t replace health insurance, it complements traditional plans, making health care more accessible, efficient, and affordable. That’s why Americans choose it as an alternative to traditional fee-for-service health care to cover primary care and maintain their dependence on insurance for specialized care, hospitalizations, and emergencies for a negligible cost per year.

Pros And Cons

Pros of direct primary care are:

  1. Simplicity and Relationship Building: Patients appreciate the straightforward nature of direct primary care (DPC), avoiding complexities like copays and coverage determinations. The model fosters a sense of building higher-quality relationships with healthcare providers.
  2. Increased Access: DPC ensures enhanced access to healthcare providers, available 24/7 via phone, text, email, or in person. Same-day visits are often facilitated, ensuring timely attention to healthcare needs.
  3. Extended Time and Attention: Smaller practice panel sizes in DPC enable healthcare providers to spend more time with each patient. This results in fewer rushed visits and allows for a more thorough addressing of health issues.
  4. Price Transparency: Patients are informed upfront about monthly or annual fees, promoting transparency in healthcare costs.
  5. Discounts on Ancillary Services: DPC often discounts additional services like on-site generic medications, labs, and imaging procedures, enhancing affordability for patients.

Cons of direct primary care:

  1. Provider Shortage: Critics argue that the growth of Direct Primary Care practices could exacerbate the shortage of primary care providers. With smaller patient panels, more healthcare providers (HCPs) would be needed to meet the demand for care.
  2. Limited Range of Services: Some DPC practices offer restricted services, prompting patients to seek external care for issues beyond basic primary care. This limitation could be a drawback for those requiring comprehensive healthcare coverage.
  3. Exclusion of Prescription Medications: DPC practices typically don’t cover prescription medications, necessitating separate insurance coverage for this aspect. It’s noteworthy that services like GoodRx offer free coupons to offset medication costs, irrespective of insurance or DPC membership.
  4. Dependency on Additional Insurance: While DPC covers primary care, patients may still require insurance for unforeseen events such as surgeries, major accidents, or illnesses. This dependence on additional insurance, particularly for high-deductible health plans, is a consideration for patients weighing the benefits of DPC.

Direct Primary Care vs Traditional Primary Care vs Concierge Medicine

The differences between primary care, traditional primary care and concierge medicine are as follows-

Direct Primary CareTraditional Primary CareConcierge Medicine
Focuses on a membership-based system. Patients pay a monthly or annual fee directly to healthcare providers for a comprehensive range of primary care services.Follows a standard fee-for-service or insurance-based model where patients pay for individual visits or services.Involves a personalized and membership-oriented approach where patients pay an annual or monthly fee for exclusive services and enhanced access to healthcare providers.
Membership fees cover various services, eliminating the need for insurance involvement in routine care.It involves insurance billing or direct payments for each appointment or service rendered.Membership fees cover a range of services, establishing a direct financial relationship between patients and providers.
Offers increased accessibility with 24/7 availability through various communication channels, facilitating same-day or timely appointments.Availability and appointment scheduling may align with standard office hours, with potentially longer wait times.Offers enhanced access, including shorter wait times, extended appointments, and direct communication channels.

Frequently Asked Questions (FAQs)

1. What is the importance of direct primary care?

Direct primary care (DPC) is important because it bypasses insurance participation and provides patients with accessible, cost-effective, and individualized healthcare. DPC emphasizes prevention and direct doctor-patient connections, improving primary healthcare quality. It promotes transparency and cost-effectiveness, offering patients fixed fees for comprehensive primary care services, resulting in a more efficient healthcare process.

2. Does direct primary care count as insurance?

No, direct primary care (DPC) is not insurance. It operates as a membership-based model where individuals pay a monthly or annual fee directly to healthcare providers for primary care services. Moreover, DPC focuses on enhancing access, affordability, and transparency in routine healthcare but doesn’t cover major medical events or act as a substitute for comprehensive health insurance. Additionally, individuals often pair DPC with a high-deductible health plan or other insurance for broader coverage, combining the benefits of both models.

3. Is direct primary care tax deductible?

Membership fees for direct primary care are not categorized as medical expenses and are not eligible for tax deductions. Furthermore, if an individual has a direct primary care membership and a health savings account (HSA)-qualified health plan, they are not allowed to contribute to the HSA. This distinction emphasizes that while direct primary care offers unique benefits, it does not align with the tax-advantaged features associated with HSA contributions.

This article has been a guide to what is Direct Primary Care. We explain its pros, cons, comparison with concierge medicine & traditional primary care, & examples. You may also find some useful articles here –

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