Q/A: DPC Patient Ages/Income Trends

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(C) The Direct Primary Care Journal | All Rights Reserved.

Source: The DPC Journal; November 2019

(C) The Direct Primary Care Journal | All Rights Reserved. The Majority of Polling Respondents From July 2018-July 2019 Were Millennials and Gen X new/prospective patients considering joining, but not yet enrolled in a DPC Practice.

Q: DPC Patient Ages/Income

Answer (The DPC Journal Staff): We see specifically related to new/prospective DPC Patient Search and our DPC Patient Surveys over the past three years that patients seeking the care of a DPC Physician or enrolling in these monthly models are trending more towards the Generation X and Millennial population. We see this happening for four primary reasons:

  • First, the low monthly commitment or price is attractive to these patient populations and age groups.
  • Second, location.
  • Third, the patient/consumer buying behavior. For example, Generation X is independent, resourceful, and self-sufficient and value freedom and responsibility. ‘Gen X also prefers honest and clear product and marketing messages that outline an obvious path-to-purchase. Gen X is more likely to conduct online research at home and then shop in person.’[3] New research from leading payments processer Vantiv shows the growing disparity in subscription spending habits from generation to generation. While Gen Xers and baby boomers aren’t signing up at a rapid rate, millennials, more than 70 percent of whom have a product subscription and 89 percent a service subscription, see subscriptions as purchasing made easier at a time when they’re bombarded with an abundance of choice. For service subscriptions, it is much higher coming in at 67 percent for boomers and 78 percent for Gen Xers. Millennials, on the other hand, seem to like the convenience of all subscription services. [4]
  • Fourth, the age of the average DPC Physician is trending younger, now between 37-43 years old. As with most healthcare practice dynamics, similar to primary care, most patients of a Physician are representative of the Doctors age within +/- ten years. (Eg. Age of Doctor is 43; Age of most patients 8/10, is usually 33-53). In fact, The DPC Journal finds that 77% of DPC Physicians from 2016-2019 are between the age of 30-49 years old. Unrelated to DPC specifically but relevant to Millennial spending trends Zuora, Inc. (NYSE:ZUO), the leading cloud-based subscription management platform provider, notes Millennials will eventually pick up the slack as their incomes rise, but it won’t happen overnight. In the meantime, investors should seek the industries and companies with “niche demographic tailwinds,” says Pat Tschosik, an analyst who studies demographic trends with investment-research firm Ned Davis Research. Companies that can benefit from millennial demand—that isn’t offset by declines from the boomers or Gen Xers—are in the demographic sweet spot.[5]
(C) The Direct Primary Care Journal | All Rights Reserved. The Majority of Polling Respondents From July 2018-July 2019 Were Millennials and Gen X new/prospective patients considering joining, but not yet enrolled in a DPC Practice.

Today, according to The DPC Journal, Generation X and Millennial populations earn around the U.S. and combined annual HH income of between than $70,700-$85,800.[6,7]

Citations/Sources Used To Write This Conclusion:

  1. November 2019; The Direct Primary Care Journal, sister publication of Concierge Medicine Today; www.directprimarycare.com; www.ConciergeMedicineToday.com.
  2. October 2019; The Direct Primary Care Coalition; Garrison Bliss, MD, Chairman; Open Letter to Congress; https://www.dpcare.org/
  3. https://revelsystems.com/resources/generational-breakdown-purchasing-patterns/
  4. https://www.prnewswire.com/news-releases/millennials-lead-gen-x-and-boomers-lag-in-the-subscription-economy-300428212.html
  5. 5. https://www.zuora.com/2019/05/07/millennial-spending-drives-the-growth-of-the-subscription-economy/
  6. https://www.cnbc.com/2019/09/17/the-median-net-worth-of-millennials.html
  7. https://www.cnbc.com/2019/01/11/millennials-households-earn-more-money-than-ever-heres-the-problem.html

 

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