ProviderLAW has been receiving an increasing number of calls regarding the propriety of offering discounts to cash patients, waiving deductibles and copays, and other such payment arrangements.

Recently, For Instance, Providerlaw Received a Call From a Provider Regarding a Certain Web Site And Preferred Provider Plan. The idea of the plan is simple. The patient signs up for a yearly subscription to a particular magazine at the suggestion of the provider and through a particular web site. When the patient signs up through the web site, at least three things happen. First, the patient begins to receive a magazine on a monthly basis. Second, the provider who helped to register the patient for the service agrees to discount his/her charges by $15 per visit during the subscription period. Third, the provider is added to a list of preferred providers which is published on the web site. Theoretically, patients who wish to discover who participates and who doesn't can review the web site for participating providers.

Upon an initial review of the web site, ProviderLAW was unable to find any suggestions, one way or another, whether the provider is supposed to discount the day's services, regardless of whether the patient has insurance or not, or whether the provider is supposed to offer discounts to cash-paying patients ONLY (or, more accurately, just to the patient-portion due). The web site in question may or may not include more information on this note. We were just unable to find it after a preliminary review.

Hypothetical Question – IF, and we do mean IF, most providers who participate in this plan also happen to be applying the discounts exclusively to cash paying patients, or just to the patient portion due – i.e., NOT to the day's services irrespective of whether the patient has insurance coverage or not – is this a list you want to be on? Bear in mind, ProviderLAW has no way of knowing, with respect to the scenario discussed herein, what charges the discount is being applied to, or whether the discount service is being applied, or is supposed to be applied, exclusively to cash paying patients or to the patient-portion due.

ProviderLAW will be researching and discussing the issue of cash discounts in upcoming weeks. However, we strongly recommend that if you have any questions regarding a particular billing or discount practice, you contact an attorney at law. Why? Your discussions with that attorney generally will be protected under an attorney-client relationship and whatever you discuss generally cannot be discovered in a court of law.

ProviderLAW will certainly do its best to offer information on this topic which you can use in your practice. But certain scenarios may merit that you speak with a consultant in a context where the information cannot be discovered.