Realigning Economic Incentives Between Patients and Physicians

Humans are motivated by, and make decisions based on, incentives. And, currently, incentives for patients and physicians are misaligned. There has been a great need for a system that allows for the incentives of patients and physcians to be aligned. The RHM platform is the first to truly do this.


One incentive for patients that must be discussed is the desire to work with – especially when discussing regenerative therapies – a “physician,” rather than a “provider.” Without going into great detail here, a “provider” is one who provides medical treatment based on last century’s model of “treat and street” or chemicals. A “physician” is one who is skilled in the art of healing. When considering the process of regenerative therapies, it is incredibly important to work with one who is skilled in the art of healing.

The RHM platform marries the process of regenerative treatments and therapies with physicians who are actually skilled in the art of healing.

How do we do this? Let’s look at the other options first.

If a third party pays for treatments, there is no “skin in the game” (relationship) for any of the three parties.

It is hard – almost impossible – to align economic interests between two parties – patients and physicians – when neither party has a say in what things cost. There is not incentive for patients to shop prices because patients get treatments based upon what their insurance company will pay for.

Conversely, physicians have no incentive to keep costs down because, frankly, the model does not require them to do so. (While the ACA, or “Obamacare,” was supposed to provide incentives for physicians to try and keep prices down, in reality, providers are perverse incentives to do the opposite by ordering more tests than necessary to avoid frivolous lawsuits.)

Without considering quality of life for either patient or physician, there are three ways currently being employed to advance the field of regenerative medicine:

Insurance Miracle

Hope insurance eventually covers the high costs of treatments

Keep it as is

Convince people to keep paying high prices

Lower prices

"A race to the bottom"

Have insurance pay for the treatments
For the time being, regenerative medicine treatments and therapies are not covered by insurance. And this will continue to be the case until insurance companies have enough date to show “evidence” that covering the costs of regenerative therapies and treatments are an acceptable risk. There will come a day when insurance will cover regenerative therapies and treatments, but it won’t for for some time.
Convince patients to keep paying high prices
Let’s forget all of the reasons why a patient would pay for treatments and assume that they want a better quality of life. Let’s also assume that patients believe that they can achieve that better quality of life through regenerative medicine treatments or therapies. We must also assume that there is a limit as to what an individual will pay for a particular treatment, just as there is a very limited number of patients that are willing–or able–to pay “whatever it takes” for a better quality of life. The field of regenerative medicine will not advance if the prices for treatments remain as high as they are. The high price tags on regenerative treatments and therapies is one fo the biggest complaints against, and obstacles for the advancement of, the field of regenerative medicine and those who wish to receive treatments and therapies. This high prices are good for the provider, but not the patient.

Lower prices
for treatments

Lowering prices would be very good for patients and their pocket books, but the physician would continue to feel like a rat in a cage on a wheel simply running in circles.


Because doctors would have to make up the lost revenue from lower prices with an increased volume of patients. Good for the bottom line, but doctors are already stretched to the max as it is.

This only exacerbates one of the biggest complaints of patients toward doctors, in general, let alone the field of regenerative medicine: a general lack of time that patients actually get with their physician. With eight (8) minutes being the average time a physician spends with a patient, it’s no wonder this is one of the biggest complaints. Especially when most of that 8 minutes is spent with the doctor staring at a screen or talking in technical jargon, lack of satisfaction abounds.

It is incredibly difficult, if not nearly impossible, to develop and build a real relationship between a patient and a physician in the current environment. While patients desire a real relationship with their physicians, it will never happen because there is no incentive for the doctor to maintain that relationship. It is a “one and done and ‘next’” transaction. Physicians ns do not seek to intentionally reduce patient interactions – it just happens in these conditions. Patients can receive care in this model – we just get more of the exam in terms of the problems of modern health (sick) care. This includes limited access to doctors, increased costs, etc.

How does the RHM platform align the economic interests of patients and physicians?
By spending time with, and giving advice to, and thereby developing a long-term relationship with, patients. RHM physicians are compensated upon the value that they add for each patient, not by how many patients they see.

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