A membership program can be a powerful tool for building a successful cash-pay practice, helping you deliver high-quality care while maintaining a steady and predictable revenue stream.

This guide will walk you through why you should consider a membership model and how to design one that offers true value to both your patients and your practice.

The value of a membership offering

A membership model allows you to align your finances with your mission, create a reliable source of income for your practice, and build customer loyalty.

1. Align your business model with the care you provide: Cash-pay providers aim to deliver high-quality, personalized care, focusing on long-term outcomes rather than one-time fixes. Many health and wellness issues require consistent follow-up and ongoing support. A membership model naturally reflects this approach, signaling to patients that your practice is committed to their long-term health and wellness journey. This structure fosters deeper patient relationships, promotes better outcomes, and enhances overall satisfaction, as patients feel they’re entering a genuine partnership in their care.

2. Establish a sustainable revenue stream: A membership program provides a consistent, predictable revenue stream that makes it easier to manage your cash flow and financial planning. This steady income means you won’t be as reliant on fluctuating patient visits, allowing you to invest back into your practice, whether that's upgrading equipment, expanding your services, or improving the patient experience.

3. Get off the patient acquisition hamster wheel: Marketing to new patients constantly can be exhausting and expensive, and it’s one of the areas that cash-pay clinicians complain the most about. With a membership model, you create a base of loyal, recurring patients who don’t need to be resold on your services every month. This not only reduces your marketing costs but also ensures you have a core group of patients who advocate for your practice.

Designing your membership

Crafting an effective membership program requires thorough research, planning, and strategy. Aim to create a program that’s simple for patients to understand, offers clear value that keeps them engaged month after month, and is profitable enough to support the growth and sustainability of your practice. Below, we share a few best practices.

• Keep it simple: One of the biggest mistakes providers make is overcomplicating their membership offerings. When you have too many tiers, options, or confusing benefits, patients may feel overwhelmed and walk away. Start with one or two membership levels that offer clear, straightforward benefits. For example, you might have a "Basic" membership that includes monthly follow-ups and discounts on additional treatments, and a "Premium" option that offers more frequent services or additional perks.

• Make it easy to commit to: People are often hesitant to commit to long-term contracts, especially if they’re trying out your services for the first time. By offering a month-to-month membership or one with shorter commitment periods, you lower the barrier to entry. This flexibility makes it easier for patients to try out your program without feeling locked in.

• Make it valuable to patients: Design your membership around what your patients truly need and want. Consider the services they’ll use most often—whether it’s monthly hormone check-ins, regular IV therapy, or discounted aesthetic treatments. Get feedback from trusted patients, friends, or family to ensure the offer resonates and meets a need. When you understand your prospective patients’ priorities, you can craft a membership that feels like a no-brainer.

• Make it valuable to yourself: While it’s crucial to offer a fantastic deal to your patients, don’t forget that your membership needs to be profitable for your practice. Ensure that the cost of delivering the services is covered and that the membership fee reflects the value and effort you’re putting into providing an exceptional patient experience. One common pitfall that we see from independent providers is underpricing their services. This approach is not only a disservice to you but also to your patients, as it’ll make it difficult for you to stay in business for the long-term.

• Make a data-informed decision: To set your membership prices effectively, consider the data at your disposal.

  • Conduct a benchmarking analysis: Research the structure and pricing of similar membership programs in your area or industry. Use competitors as a benchmark, not a guide.

  • Review your internal data: If you’re already running a practice, consider your current and projected economics. This includes metrics like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), Retention Rate, Churn Rate, Service Utilization Rate, Average Revenue per Patient (ARPP), Profit Margin per Patient, and Break-even Point.

Case studies

To help you visualize what a membership program could look like, let’s explore some real-world examples. (Please note, pricing information is as of September 2024. For updated information, review the websites directly.)

Aesthetics

Manhattan Medspa has two membership programs. WrinkleFix costs $169 per month or $1,999 per year, covering “unlimited toxins” for up to four areas as well as a 20% discount off other injectables. SkinFix costs $199 per month or $2,299 per year for a regular facial and 20% off all other services. They’ve created a program where members feel like they’re part of an exclusive club, offering high-value services in return for their commitment.

Aroma Laser offers various membership levels, ranging from $79 per month (2 Botox treatments per year, 2 microdermabrasion treatments per year, 10% off fillers and products) to $139 per month (4 Botox treatments per year, 4 microdermabrasion treatments per year, and 10% off fillers and products).

Hormone Replacement Therapy (HRT)

Femgevity Health has an entry-point membership ($79 per month) for an initial hormone consultation, lab review, and custom treatment plan. Their middle tier, which they say is the most popular, costs $395 upfront and $129 per month. This includes a longer initial consultation, comprehensive family history, longevity risk analysis, lab ordering in addition to lab review, custom Rx / nutraceutical / diet / exercise plan, and one made-to-order custom bio-identical compound. Finally, the “Longevity Plan” ($495 per month) covers an additional made-to-order custom bio-identical compound, functional lab tests (estimated at $3,000 value), quarterly bloodwork reviews, and unlimited text and messaging.

Evernow has streamlined their membership with a monthly fee that covers 24/7 access to menopause-certified providers via video or text, personalized care plans, and prescriptions as necessary (with the cost of the medication as an additional fee). They reward long-term commitment, with a month-to-month price of $49 per month, a discounted 3-month price of $43 per month, and a further discounted fee of $35 per month. The simplicity of this approach makes it easy for patients to compare plans and select an option.

Weight Loss

Ro’s membership has a “Getting started” price and a “Membership” price. For $99, patients receive an online health assessment, their first GLP-1 prescription (if indicated), and concierge insurance support. For an ongoing cost of $145 per month, they receive prescription renewals, unlimited messaging with their provider, ongoing insurance support, and health coaching. The cost of the medication is not included.

Eden offers a membership for semaglutide for $196 for the first month and $296 for future months. This membership covers care from a provider, compounded medication.

Good luck!

There are many different options for how to structure your membership. As you consider these examples and begin designing your own, remember that a well-designed membership program doesn't just provide steady income—it strengthens patient relationships, fosters loyalty, and enhances the quality of care you provide.

The Otto team wishes you success as you build out this offering. If you’d like further guidance, resources, or support, get in touch!