Financial strategies for the new economy – Part 1 and Part 2 (Proceedings)
Making your practice more profitable isn't about luck. You don't roll the dice and hope to meet your financial goals for the year. Being profitable is about playing the right hand at the right moment and making changes in your practice that maximize your profitability. So use these seven strategies to ensure your practice will be flush with success.
1. Enhance consistency
Differences in medical philosophies baffle doctors, staff, and clients and can lead to shortcomings in patient care. Say your standard is to perform annual wellness testing on all your senior patients. But only two of four doctors follow the protocol. This puts half your patients at a medical disadvantage. Don't make people guess what you want. Define your standards of care, get them in writing, and use them as a teaching tool to communicate your expectations to doctors and staff. Your goals are to provide high-quality care, nurture lasting client relationships, cultivate happy, productive doctors and staff, and enjoy a fun, profitable practice.2. Develop a budget
Define your goals for spending and revenue growth. Set revenue and expense goals and then share them with the team members who'll help you achieve them. And don't forget to measure and analyze your performance. Create a systematic approach to reviewing your monthly results, and develop an action plan to respond to problems or opportunities you identify during this review. Search "budgeting basics worksheet" at http://www.dvm360.com/ for a tool to get you started.
3. Encourage staff contributions
Every team member at your practice must be knowledgeable about your standards for the sake of consistency and continuity. It's up to you to teach and mentor your team members and communicate your expectations for upholding those standards of care. An effective training program ensures that new team members start off on the right foot and become successful. Regular internal and external CE encourages team members to grow and will net your practice major rewards in the future. Improving staff expertise frees you to focus on other things – like seeing more patients, taking a lunch break or ending the day on time.
4. Monitor and capture charges
5. Increase compliance
Send consistent messages to clients with concise, clear, and specific recommendations. Clients should hear the same message from everyone on your team. If your standard is six-month exams for all senior patients, and the doctor and the technician explain that in the exam room but the receptionist says, "See you next year," the client will leave confused. Set compliance targets for the services you perform most often and that are most important to your patients and monitor the results (for a detailed plan on how to do this, see "Hit Your Goals" - Figure 2). Provide timely reminders about important services. Proactively take the lead with your clients by offering to schedule the next appointment at the end of the visit instead of waiting for the client to ask about additional care or other services.
Figure 2 – Hit your goals
Randomly choose 20 outpatient medical records per doctor. Compare the care provided per the medical record to the ideal care outlined in your standards. Identify whether:
The recommended care met your practice's standards.
The patient received the recommended care.
The record noted any recommended care the client declined.
Compile the results and calculate your client compliance rates. If your actual compliance rates are lower than your targets, discuss the results with your team and develop an action plan to improve your success rate.