Are Venture-Backed Companies Changing Private Practice? What Dietitians Need to Know
[00:00:00] Hello and welcome back to Dietitian Boss Podcast. I'm Libby Rothschild, I help Dietitians like you start and grow private practices with confidence, even as the industry changes around us. Today I wanna talk to you about something real and honestly a little uncomfortable for many Dietitians. The rise of venture backed nutrition companies and what that means for the future of private practice.
Companies like Better Help have transformed access, but also changed the rules for providers. Lower pay per session, limited client relationships and less control over your work.
And now the same shift is happening in our space. Platforms like Fay Berry Street or Tech Heavy Startups, promising fast access to a Dietitian, all backed by millions in investor funding. This episode will help you understand what's happening, what the pros and cons of joining these platforms are, and how to stand out as an independent provider in a changing landscape.
Over the past few
[00:01:00] years, we've seen a huge wave of venture capital flowing into the nutrition space because investors know that nutrition is tied to nearly every health condition. People are looking for accessible solutions, and tech companies can help scale fast, especially after virtual care has been more accepted Post pandemic.
Companies like Fay are building platforms where clients can get matched with a Dietitian, and often they are insurance based, and often with quick onboarding and backend automation On paper, this sounds fantastic. More people get care and more Dietitians get work. Therefore, everyone wins. This wasn't around when I first became a Dietitian over a decade ago, but here's what happened in therapy and why Dietitians should pay attention.
Therapists who joined these platforms did often report less control over client relationships, less time per session, lower pay rates, and less ability to build their own brand or business.
[00:02:00] Now this doesn't mean that these platforms are inherently bad, but it does mean that independent private practice Dietitians do need to adapt Now.
You are now competing with sleek tech backed companies that offer convenience, that changes how clients find you, what they expect, and how you position your value. These companies have huge marketing dollars to spend, therefore you probably see them all over Google. So what are the pros and cons of venture backed platforms?
The pros include built-in referrals. These platforms bring new clients, right? The admin is also handled, which we all know is very nice. Billing, scheduling, and EMR is streamlined.
This also can help with steady income 'cause it, so this can fill gaps in your caseload and then quick experience. So for newer Dietitians listening, you can build confidence. Trying different types of clients, working with
[00:03:00] different types of clients. So of course we've had a lot of our clients and members use these platforms as a stepping stone and as side income, and that's totally fine.
the cons of these venture backed company. Companies can include lower pay per session. So remember that the companies do take a cut. If they do the admin and bring you clients, they have to take a cut for that.
So you might be making, I don't know the exact rate. I'm gonna guess anywhere between 30 to $60 a session versus hundreds on your own. Again, of course, that can depend on a lot of factors. Insurance, cash pay, how much you're charging, are you bundling, et cetera.
~So ~let's just go ahead and say you could make double on your own a round double. Additionally, another con would be limited control. So you follow their rules on timing, documentation, and even some client messaging and then brand invisibility. So you don't really get promoted, the company does, right?
So when you're working for someone else, the company takes the credit and there's no long term clients.
[00:04:00] Clients might rotate frequently, and it could be harder to build deeper relationships versus what you have an opportunity to do in a private practice setting. And so this is a huge issue.
I remember one of my coaching clients, told me that she was getting booked solid and really happy with Faye, but she felt like a, contractor on a call center, Not a Dietitian, running her dream practice. So experiences can vary. I know some Dietitians are very happy, some are frustrated.
It's a mixed bag. I'm just here to present you the information. I think there's. A lot of great things these venture backed companies are doing, like bringing credibility to the name of a Dietitian. But of course, if you decide to work with these companies, I just want you to be presented with the information.
So the field is changing forever in dietetics, and you might wonder how to stand out if you do operate in your own practice, even if you're operating a private practice outside of working for one of these venture-backed companies. So let's talk about how you can stand out in this current
[00:05:00] climate, because you still can.
These platforms serve them masses, but you can serve the individual and here's how you can compete and win in today's landscape. You can build your personal brand, right? That's your name, your vibe, your philosophy, not backed by the company, right?
Clients are hungry for connection and they wanna work with someone who gets them, right? Not just anybody with an RD credential, they're looking for a fit, right? And of course, I'm gonna go back to specializing in a niche, right? So venture backed companies are often broad, right?
You get matched with a Dietitian and of course they've got specialties within what they offer. But when you come across clients with PCOS. That's your edge. So you can lead with that edge when you work for yourself and stand out, right?
Building your brand, working on your specialization. A client of mine narrowed down to emotional eating and perimenopause recently, and she's now fully booked without insurance. It is possible, of course, you can combine insurance if you want, but you
[00:06:00] don't have to. Those are the choices you get to make, so you can also leverage high touch offers.
So group coaching, you can do follow ups, you can do high ticket coaching, and you can charge thousands of dollars if you want. You can offer recipe support, meals, plans, memberships, and platforms like phase and the nourishes out there. They don't always offer these opportunities. You can create packages independently.
As a private practitioner that do build loyalty and raise your rates, you have a lot more control and flexibility in terms of how you wanna offer your services. You can also offer hybrid care, which I find really helpful when you have different seasons of life. Some clients want telehealth, some in person, some want both.
You've got the flexibility, whether you wanna offer both or you only wanna offer telehealth, or maybe you wanna offer cash pay and insurance over telehealth, or you wanna offer digital products like an ebook and cash pay, or you're deciding you wanna phase out insurance or you wanna add insurance.
However, whatever mix you wanna do with hybrid care, you can choose that flexibility and
[00:07:00] change it. So you have those choices when you are in private practice, and that's pretty empowering. And then also you own your own marketing.
So even simple newsletters or SEO blogs can help you own the relationship when you're independent, right? And that means that you can get more referrals, more growth, and more freedom when you're using your own marketing strategies
so what's next? What's in the future here for private practitioners like us? Clients will continue to crave personalized care and additionally, personalized care is a hot topic. It's trending. It's something that clients want. Insurance and telehealth access will continue to expand.
These companies have hundreds of millions in marketing dollars, and they're only growing bigger and faster. The Dietitians who adapt like you, not just to trends, but to their strengths, meaning what are the venture venture backed companies doing?
Those of you who adapt will thrive similarly to those of you adapted during the pandemic, went to
[00:08:00] virtual, et cetera. You will thrive. Working for a venture backed platform can be useful as a stepping stone, even as something permanent, if that's what you choose, right? But building your own brand with your own systems and your own relationships that you own your email list.
That's what creates long-term scalability and income growth on your terms. So should you work for one of these platforms, maybe. That might work for you. It works for a ton of Dietitians, especially if you're starting out or you need the structure, right? If you're unwilling to learn how to make marketing work for you and take some risks, then these venture-backed companies might be a really good solution for you right now.
But long-term, owning your brand is where the power is because nobody can take that away from you. You have to fire yourself. If you want help building that kind of business, we're here for you. I want you to reach out to us on Instagram at Dietitian Boss
you can also head over to Dietitian
[00:09:00] boss.com and join the library where you get access to our monthly membership with tools content coaching and systems to help you stand out in today's changing landscape We'll see you next time.
