Is your practice as profitable as you hoped?

Profitability compass

Is your practice as profitable as you hoped?

There are only 3 ways to put more money in your pocket

  1. Sell More (treat more patients)
  2. Charge More or
  3. Spend Less

Every year, it’s a good idea to plan in advance how you are going to deliver against each of these objectives.

Sell More – Treat more patients

When did you last check how many hours you spent with your patients vs setting up or running your practice?

On an average week, you could spend an hour on a team meeting, half an hour on the phone solving an IT issue, half an hour trying to find a last-minute replacement for your secretary who called in sick that morning, a couple of hours chasing outstanding invoices, an hour confirming anaesthetist and assisting doctor for upcoming operating list, a couple of hours going through email enquiries.  In business, these are known as ‘non-core’ activities, costs to your business that need to be minimised and/or outsourced.

As the rain-maker, your hourly rate should be too high to be wasted on non-core activities.

“Do what you do best, and outsource the rest”

Peter Drucker, Author and Harvard Business School Professor

Outsourcing maximises your billable hours, allowing you to focus on consulting, operating and patient care, the core of your business.

Charge More – Provide a service that justifies a higher price

To charge more, your private consulting and operating days must be full, weeks in advance. Only then should you increase the price of your services.

But in order to get full consulting and operating days, you must provide exceptional levels of service and patient care. This ensures repeat referrals, loyal patients and a great reputation.

Exceptional service comes from the support team you have in place. You cannot afford phone calls or emails not being answered or ordinary service at reception. The team supporting you are the front face of your practice. The team’s professionalism and follow through will make lasting impressions on the patients. They are there to help make your patients’ medical journey a more comfortable one.

The exceptional patient care comes from you. You must allow yourself time and energy to be able to focus on patient care at all times. You can do this more effectively and efficiently by outsourcing the running of your practice.

Spend Less – How do you cut costs without compromising service?

You co-work. Co-working allows you to share a highly trained support team with like-minded specialists. You’ll receive professional support, full-time, at fraction of the cost. You don’t need to worry about HR processes, insurances, legalities and employment issues. You get a team that works for you but is not managed by you. A win-win!

Co-working gives you the independence of your own practice, with the benefit of shared costs and no upfront capital. There is less commercial risk and your ongoing costs are predictable, irrespective of how much you earn.  Fixing your practice costs, rather than paying a percentage of your earnings, will accelerate your commercial success and enhance your profitability.

 

 

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