Why Community-based Acupuncture is the Model for Success (Even Survival) in the Future
March 2nd, 2009
Why Community-based Acupuncture is the Model for Success (Even Survival) in the Future
Published on March 2nd, 2009 @ 02:24:11 pm , using 879 words, 1217 views
by Bob Flaws
While it is heartening to see more and more 20 and 30 year-olds enrolled in American acupuncture schools, it's not clear to me that either Gen X or the Millenials are likewise coming on board as OM consumers. From everyone I talk to, it seems that we Baby Boomers are still the main consumers of this medicine. That bodes ill for the future viability of this profession. We need to get 20 and 30 somethings using this medicine or we will die out due to attrition.
Follow up:
Let me explain a little history for why I say this. When I started out 30 some years ago, I was essentially a penniless ex-hippie. I began my practice out of our unfurnished two-bedroom apartment. Patients laid on a mat on the floor "Japanese" style while I sat on the floor at a low desk I built. It was all so-o-o "Oriental," or so I and my patients thought. I charged $10 per treatment and saw 40-60 patients per week -- people basically my own age -- this is Boomers. I put food on my family's table and paid the rent. As my patients' earnings increased over the years, so did my practice venue and my fees. Eventually, we had a multi-practitioner clinic in a professional building, and my fees eventually hit $100 per in-take and $50 per treatment. Plus we sold lots and lots of herbs. When I quit all that 10 years or so ago, I was easily making more than $100k from my practice alone.
However, now the Boomers are coming to the end of our earning years. Even without the current recession/depression, we simply are not going to continue having the disposable income for out-of-pocket treatments like acupuncture/OM. On a fixed income, we are going to have to be much more careful about what we spend. Seventy-five, 80, or more dollars per treatment is going to become very difficult if it hasn't already.
What I'm getting at here is that my fees grew along with the earnings of my main demographic. But how is a 20 or 30 year-old going to afford these "mature" fees. These younger generations are at the bottom of the economic ladder. They're just starting out. Many have young and growing families to support. While it's my experience that these younger generations are open to using acupuncture/OM, I simply don't think most of them can afford it given the cost of treatments today. We're trying to sell people Cadillacs who can only afford Hyundais. Sure, the Cadillac may, theoretically, be worth the money, but that really doesn't matter if you don't have that money.
Further, it's bad enough to pay $80-100 per week for a single acupuncture treatment, but, for best results, acupuncture should be given once per day for acute conditions and three times per week for chronic conditions. This is what all the research from Asia shows. It's also my personal clinical experience. You simply will not get as good results doing acupuncture once per week. So now, to get the best therapeutic effects (and to protect your investment in therapy), we're not talking about $80-100 per week but $240-300 per week. Who but the very rich can afford that? Certainly not 20 and 30 year-olds.
So thinking about this, I believe it is imperative that more young practitioners adopt the community-based acupuncture model. In this model, one treats 3-5 patients (or more) in a single large room all at the same time. (Anyone who's been there knows that this is what is routinely done in China.) You may only be charging $15-20 per treatment, but, what you're "losing" per treatment, you're making up on volume. People, even young people can afford $15-20 per treatment, even if that means $45-60 per week. A movie for two costs $15. Most any book or CD costs $15. Fifteen to 20 dollars is an affordable price point, even for young people. At a treatment frequency of three times per week, most conditions will get good results in 3-6 weeks. So it's a limited investment with a high probability of therapeutic success. Even treatment two times a week is far superior than one treatment per week.
If we continue to demand that younger patients fit into and pay for a model that developed over 30 years in tandem with our target demographic's earnings, we will simply price ourselves out of business. The Boomers have been great for acupuncture till now. Now, thanks to our previous feckless leaders, even many of us don't have the disposable income anymore, and those that do soon won't because of retiring from the work force. Then we Boomers will be living on Social Security and other sources of fixed income. This is not a maybe; it is a certainty, and we, as a profession, need to wake up to these changing demographics before it is too late. If all your patients are Boomers, then you are treating an endangered species.
Just as our current administration is trying to turn our national economy around by trying new approaches, we also need to find new approaches to practice to fit these new, emerging demographics. We simply have got to make acupuncture/OM affordable to Gen X and the Millenials. Otherwise, we will price ourselves right out of business.
Copyright Blue Poppy Ent., Inc. 2009. All rights reserved.
4 comments
Thank you for speaking out in favor of community acupuncture. I invite every acupuncturist to visit www.communityacupuncturenetwork.org and read some of the blogs. By joining with a small membership fee, tremendous resources are available, all shared by community acupuncturists, to advise and support in how to build community, how to set up the practice, and how to treat various medical conditions when patients are in recliners.
Thank you again!
Marty Calliham, L.Ac.
Bob's blog was mainly talking about disposable income and how it relates acupuncture service. I believe in "supply consciousness". If we decide that people don't have money to utilize our services we are creating a self fulfilling prophecy. Community acupuncture is great, but should we make it a professional imperative?
In the health care market, I believe acupuncture practitioners should enjoy the same professional rank as MDs, Dentists, Psychologists and others with advance training.
Fear of not making ends meet shouldn't be the reason to open a community acupuncture clinic.
Respectfully,
Greg Anderton, MS, LAc
I am going to have to disagree with you on that. We aren't "deciding" that our patients can't afford it, the REALITY is that most people can't afford it often enough to work best (which according to all the research ever done in China may be 10 days in a row for acute conditions). Even at $65 per treatment...to come in 3 times per week it would be $780 in a month. I am sorry but that is the average (or above average) RENT for an apartment in most large cities. At $15/treatment in a Community Acu place it would be a much more reasonable $180. That $600 difference is a LOT of money to most people. That isn't a self-fulfilling prophesy, that is basic kitchen table economics.
I also find your remark about our professional rank equally puzzling. Our clinic we just opened today looks nicer than every MD treatment room I have ever seen by far. So it must be the pricing that would make us a "lower professional rank" if we all did the low cost/high volume community model, right? I would have to counterpoint you and say that worrying about professional rank is not a reason to charge high fees anymore than worrying about not making ends meet is not a reason to do community style (as you correctly pointed out)
If someone can afford regular treatments, and you make them more healthy while their MD they saw before you didn't then you actually have a higher "status" in their mind than the MD that failed them. We are basing our model on cooperation not fear, and most community acus make more than they did as a private room acu, so it isn't like they have "poverty consciousness" as one lame critic of our business model said.
I suggest you research more on what Community Acupuncture is before lumping it together with a NADA style methadone clinic like many do.
Also, Distal points just by themselves can have a 90% success rate (according to many Doctors from China)...so it isn't just "types of conditions" that respond to it...it is most.
Anyway, take care and I hope all is well with you and your future is filled with love and abundance my friend.
Rob
Competing for market share based on price is akin to playing guitar on the street for donations. Many community acupuncturists dress like street buskers as well. You aren't gaining respect or street cred this way. You look flakey.
As to the baby boomers being a tapped market, I wholeheartedly disagree as do many financial annalysts. The WWII generation has saved and will pass on their money to the baby boomers. People will pay anything to get better and if you talk to people in their 90's money is nothing to them, only time and health. If you can offer genuine value, you are worth the money.
Basing community acupuncture on China is flawed at best. They have acu/massage departments in hostpitals which are state run and the doctors make a few hundred bucks a month, but if you go to the best private doctors they work at Beijing Tongren Tang and they are community herbalists who see 20 patients an hour and are well paid. (dumb kids in Chinese TCM schools have to do acu.) Until the US government pays for your x-ray machine and the local population is about 10 million it might be best to follow in the footsteps of tongren tong rather than state run hospitals..that is unless you enjoy waiting tables in between patient visits. At the herbalists in China you can get effective dosages..40g of each herb, which few people in N. America would dare to give because they know they are incapable of providing a real diagnosis, are terrified about drug interactions and have zero knowlege of toxicology. Step up to the plate, get more education and do your job properly and the community will actually be better off. I have research trials which have yet to be published in English showing TCM formulas working better than common pharmaceuticals, while being safer. Thanks to the work of Mr. Floss and his gernation of acupuncturists in the west we have a golden opportunity to take medicine to a level it has never been before. Please take the initiative to do so. Learn more, charge more, give more. As a profession we are underrepresenting what this medicine is capable of.
