An Interview With Howard Luks, M.D. and FairCareMD: Fair Prices and Fees for Healthcare
Posted in Surgeon as Entrepreneur | Mar 2011 | Comments (2)
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Founded in 2009, FairCareMD is an open, web-based marketplace in which healthcare providers can offer services at reasonable prices to people paying for care out of their own pockets.
Howard Luks is a practicing orthopaedic surgeon and Chief Medical Officer of the company. We asked him to enlighten our readers about this innovative approach to healthcare.
ORTHOPRENEUR: Can you describe how FairCareMD works?
Howard Luks, M.D.: Essentially, FairCare is a place where doctors and patients can connect online in ways that make sense to both. Patients need to learn "what services are what" in a relaxed setting, and figure out what things will actually cost. The best setting for such research is not on the phone with my staff, nor in my office. These add overhead costs to my practice and the message is incomplete, rushed and imperfect. I can list my fees for all my services and even enter negotiation criteria if I feel like it. I have complete control over my pricing on FairCareMD, and can bring in new patients willing to pay me a reasonable fee for my time for negligible marketing costs. As far as I know, there is no other system like this in the world. At the end of the day, FairCareMD is an automated direct to consumer contracting system that subtracts one party from the third party payment system.
ORTHOPRENEUR: What was the original motivation behind FairCareMD?
Howard Luks, M.D.: Alex Fair, Founder and Chief Executive Officer of FairCareMD, was trying to find a reasonable price for a pediatric dentist one day and found the task nearly impossible. Eventually he found a great, fairly priced dentist when picking up his daughter from a playdate. He then went around and asked 500 doctors if they would participate in such a system. About two-thirds said they would love to, so he hired a team of friends who just happened to be among the best developers around. Thus, the site was created.
ORTHOPRENEUR: What motivated you to become involved?
Howard Luks, M.D.: I see a number of uninsured patients who are willing to negotiate for care each week. I was looking for a way to streamline this process in an open and transparent environment. FairCareMD delivers that for me and anyone paying directly for care - a population that is on the rise.
ORTHOPRENEUR: What benefit do physicians derive?
Howard Luks, M.D.: Physicians determine the care they are willing to offer and set a price they feel is fair for that service. Patients will engage them through the platform. If the physician has set up his/her profile to allow for negotiation, then a price is agreed upon, a contract emailed to both parties and the visit is scheduled. I have eliminated a significant cost burden in trying to serve the uninsured population in a fair, open and transparent manner.
I have also heard of and see more of patients paying an annual set price to physicians for anticipated or no-anticipated services that they may encounter or require throughout the year. They walk in, service is rendered, they walk out. Helps to avoid the hassels of filing insurance claims and dealing with insucance companies.