It is not new that private practices are struggling to prosper. Challenges such as decreasing reimbursements, the higher cost of providing services, attracting and retaining competent staff, and increasing administrative burden are leading to practice closures on a daily basis. Although many of these systemic challenges are beyond our direct control, there are steps we can take immediately to increase our chances of success.
Adopt the attitude of an entrepreneur. Doctors often tell me that they run practices, not businesses. This perspective was born from witnessing business practices that harmed patients. It is important to note that while there are harmful business practices, there are also business practices characterized by integrity and efficiency that increase value for patients. Without viewing our practices as businesses and adopting an entrepreneurial identity, balancing the dual goals of widespread impact and financial success becomes an uphill battle. No margin, no mission. Remaining profitable is what gives us the right and ability to continue serving patients.
Embrace promoting your practice. When I started my private practice fourteen years ago, I thought marketing was unprofessional and of no importance to me as a physician. What I didn’t realize at the time was the power of creating market visibility. One of the best things I can do for my potential patients is to let them know I exist and show them how working with me will change their lives. Promoting my practice is one of the kindest things I can do for someone looking for a doctor like me. When we fail to get the message across, we remain the best kept secret. We can't serve patients because they never found our service. In practice, promoting your practice comes down to building a referral base and leveraging social media.
Prioritize retention of current patients. Acquiring new patients costs seven times more than retaining current patients. Think of marketing as the front door to your practice. Your ability to retain your patients is the back door. No matter how effective you are at attracting patients, if your patient experience and compliance are poor, your back door is wide open and they will walk straight through the exit. In this scenario, it will be impossible to maintain the volume your practice needs to thrive. Instead, focus on providing a seamless service and facilitating patient compliance.
Here are some tips to help you prioritize retention. First, go through the entire patient experience from start to finish and ask yourself a few questions. Are there bottlenecks? Does the process stop at any point? What can be improved? What can be made less confusing? These questions are worth asking periodically. Second, become familiar with your patients’ compliance data. Know what percentage of patients have scheduled their next appointments. How many failed their last test? What is your system for helping patients stay compliant? Closing your backdoor will be one of the most important things you do for the long-term stability of your practice.
Optimize team roles and responsibilities. Your team is probably your biggest “expense.” In the best-run companies, teams are designed to be an investment, not an expense. Positions are designed so that team members contribute directly to results within the scope of their responsibilities. Alternatively, a practice in which the physician owner is solely responsible for generating revenue is a recipe for burnout.
You can optimize your team by asking this question: “How does this role help me serve my patients at the highest level and generate revenue?” Consider this in the context of your medical assistant and receptionist. Your medical assistant becomes an asset when he or she ensures that each patient has a follow-up visit scheduled before leaving their appointment. Not only does this provide good patient care, it’s also good for the bottom line. Likewise, your receptionist can guarantee that 90% of all co-pays and deductibles are collected at the time of service. These two strategies alone can make a significant difference of thousands of dollars for your practice. A simple change but powerful results.
Take ownership of revenue cycle management. When I first started out as a private practice owner, I avoided my practice's billers and billing department like the plague. Not only did I not understand what the data provided entailed, but I didn't know how to know if the team was doing a good job. Above all, I didn't feel like I had the time to understand. As long as there was enough money in the company bank account to cover overhead, my salary, and a profit, I adopted the attitude, “If it ain't broke, don't fix it.” “.
Your billing department is to your practice what your aorta is to your body. If it is cut, the cabinet will bleed. It’s time for us to take radical ownership of our billing services. This does not mean that we personally carry out the billing. However, we must take ownership of monitoring and know the financial health of our practices. We need to know several metrics such as accounts receivable (AR), accounts receivable days, gross collection rate, denial trends, etc. Your revenue cycle is too important to be left on poorly functioning autopilot.
This is a difficult time for the survival of independent private practices. The good news is that with a few effective adjustments, it is possible to not only survive, but thrive. Systemic changes will take time. In the meantime, let's do our part to thrive where we are with what we have under our control.
Nneka Unachukwu is a pediatrician.