Functional Medicine Practices Resilient during Pandemic

Functional, integrative, and metabolic medicine practices have weathered the COVID-19 pandemic with considerable resilience, according to survey data. The respondents reported fewer closures—under 5%—and less income loss compared with other physician surveys posted.    

The nationwide survey of over 3,500 practitioners was conducted in August/September 2020 by OvationLab. The respondents included MDs, DOs, naturopaths, nurses, integrative and conventional chiropractors, nutritionists, and acupuncturists. A range of practice models was represented, including conventional insurance-based, direct fee-for-service, concierge, bundled or fixed-price programs, and hybrid models.

MDs, DOs, and NDs reported the lowest closure rates (2%) and acupuncturists the highest (13%). Concierge services, which account for 5% of the cohort, and bundled programs fared the best, with these two models reporting no closures. The closure rate for fee-for-service practices was 5%. A Physicians Foundation survey published in August 2020 showed a 14.5% closure rate among its respondents.

Many functional medicine practices have, however, been financially impacted by the pandemic, with up to 75% showing some revenue shortfall. 7-14% reported increased income in the survey period. Acupuncturists and oriental medicine practitioners were the hardest hit in terms of revenue declines. 

With about a third of respondents indicating concern about the future viability of their practices, overall efficiency and value optimization are important. Practices may want to consider meeting the challenges ahead by increasing patient throughput, offering telemedicine and COVID-related services, and implementing bundled programs.