Zocdoc Shifts to Performance-Based Fees for Doctors

Zocdoc, founded in 2007, connects patients with doctors for online appointment scheduling. The company transitioned from fixed monthly fees to a performance-based payment structure. This change allows doctors to pay only when a patient books an appointment. The updated model addresses concerns about cost-effectiveness for lower-volume healthcare providers. To ensure compliance, Zocdoc collaborated with regulatory bodies. The Department of Health and Human Services provided an advisory opinion approving the fee structure. This approval is contingent upon implementing safeguards against potential abuse. These measures aim to prevent corruption and maintain ethical standards within the healthcare system. The Anti-Kickback Statute is a key regulation addressed by this change. Zocdoc's revised approach balances business viability with patient protection. The company's experience offers insights into navigating regulatory complexities in healthcare. The shift may influence future business models within the sector. The platform's evolution demonstrates the challenges and opportunities in healthcare's digital transformation.