Andy Sacker recently interviewed me and he asked me what is the secret of a good profitable practice. I mentioned the following to him.
The key to practice management success for any medical practitioner, consultant and other professional service is a sound business model. I find that too many physicians spend so much of their time laboring over things that pay little dividends. This can include low fees, working with the wrong insurance carriers and sometimes not creating passive income to augment reschedules, cancellations, etc. Which also reminds me that time is valuable and although many patients cancel this does not mean the doctor should not charge for the lack of patient judgment.
Additionally, there are three reasons why medicos lack the framework necessary for great revenue. What doctors need to think about is that their practice is like a three-legged stool. Each one has to equally support the business so that it does not tip over causing the foundation to fall. The legs include:
- Community – It is necessary to think of yourself as a tribal leader attempting to create followers. The best example I can give is the prowess of Apple. Back in 2007 Steve Jobs introduced the iPhone to the world but rather than make it available it was hidden away for six months of development. No one saw it but everyone wrote about it. If memory serves me correct there were over 2 million Internet stories and no one had seen the phone. Moreover, 175,000 people stood outside for over 48 hours to be the first to get one – site unseen. That is the power of community. When they love you and understand your value they speak amongst themselves because of your value. Doctors not only do not advertise, they never worry about revenue and patient volume.
- Marketing – Doctors are in the marketing business. The sooner they understand this notion the sooner patients will be attracted to them. Too many sit around with the signage up in a building or strip mall hoping upon hope that patients will visit. Not true, the physicians cannot live in a “Field of Dreams”. To build a sustainable business means being aggressive about meeting people, handing out cards and telling the world about what you do. There are two reasons why some get voted as Americas Top Doc’s one is for their great work and the other is because people know they do great work.
- Customer Service – If customers (patients) are not top of mind then you are not building your practice. The first things you need to think about as well as the last are patients. They are the reason why the lights go on and the bills get paid. Being dismissive of patients’ means that patients can dismiss you.
If you keep firm and focus your energies each day on these three areas your business will be on solid foundation. When you dedicate time and talent to balancing the stool, your practice will be profitable; revenue bound and make you a happier practitioner.
© 2012. Drew Stevens PhD all rights reserved.