Hurdles for Cash-Only Practices

Article

I love the idea of starting a cash-based practice — no insurance sounds perfect! Are there any drawbacks I haven't considered?

Question: I love the idea of starting a cash-based practice - no insurance sounds perfect! Are there any drawbacks I haven't considered?

Answer: The single biggest hurdle cash-based practices face is building business. Patients may be slow to join a practice in which they always have to pay out of pocket. You'll need to invest in marketing and education. Try to keep costs and debt low at first.

You also may encounter resistance from the medical community. Some feel that physicians who run cash-only practices are catering to the wealthy. This certainly need not be the case (your charge for a simple office visit can easily be less than a patient's ordinary copay these days), but it can be the perception. Just brace yourself and be prepared to educate other professionals.

Newsletter

Optimize your practice with the Physicians Practice newsletter, offering management pearls, leadership tips, and business strategies tailored for practice administrators and physicians of any specialty.

Recent Videos
Keeping Fridays fun
Is there more of an appetite for regulating administrative burden?
Should your practice outsource?
© 2025 MJH Life Sciences

All rights reserved.