What sets the most profitable medical practices apart?
There are many Practice Management manuals and textbooks out there, ranging in size from 400 to well over 1,000 pages. While these texts offer some valuable advice, much of the pages are filled with academic and scholarly discussions, references to business theories, and basic definitions about business terms. Also, many of the chapters – while important – focus on administrative and procedural details, as opposed to improving the bottom line of a healthcare practice.
For this reason, many of our members and clients have asked us for a concise, practical guideline about Practice Management that answers a single question:
What are the top strategies I need to put in place in order to have a more profitable and productive practice?
In other words, healthcare providers want to apply the Pareto Principle (the 80/20 rule) to having a more profitable practice: What are the 20% of all possible strategies and tactics that can achieve 80% of the impact to the bottom line?
Our research reveals that there are eight attributes that provide the “most bang for the buck” in any healthcare practice:
1. Develop a sound strategy.
2. Get paid quickly and accurately.
3. Control costs and finances.
4. Make marketing a priority (but by using tasteful, appropriate tactics).
5. Be more productive.
6. Take advantage of information technology.
7. Improve your interpersonal and communication skills.
8. Put in place systems to increase the value of your practice.
By definition, these strategies do not cover everything that a healthcare practice needs to manage or worry about. For instance, we have not included compliance with state and federal regulations, recruiting and orienting staff, risk management/malpractice, office procedures, or employee contracts.
We also make the assumption that you are already providing a high quality of care, and therefore do not focus here on clinical outcomes. We instead focus on more of the traditional business aspects of running a practice.
Despite these constraints, we believe that healthcare practices that focus on these eight strategies will excel compared to those that do not.
What is your experience? Please let us know by posting here.